SHARE MARKET LATEST NEWS- Sensex up 1,100 pts, Nifty near 22,800: Trump tariff relief among key factors behind market rally today
Sensex, Nifty gained sharply on Friday on hopes of a possible India-US trade agreement before the end of 90-day pause on the reciprocal tariffs.
Benchmark equity indices soared sharply on Friday, led by firm global cues and renewed optimism around a possible India-US trade agreement, after Washington announced a 90-day pause on the additional reciprocal tariffs.
Sensex opened with a strong gap-up, jumping 1,194.36 points or 1.61 percent to touch an early high of 75,041.51. The NSE Nifty also surged 383.9 points or 1.71 percent to scale 22,783.05 in early trade.
Adani Enterprises, Tata Steel, Cipla, JSW Steel and Tata Motors were among the top five Nifty gainers today which rose up to 5 percent.
The rally came on the back of positive momentum from global peers and a catch-up effect, as the domestic markets were shut on Thursday for Mahavir Jayanti.
Asian equities had already rallied in the previous session, with Japan’s Nikkei index climbing 9.1 percent and Taiwan’s benchmark rising 9.3 percent.
Key factors behind market rise today:
1) US suspends fresh tariffs on India, others: Sentiment was lifted after the United States temporarily suspended additional tariffs of up to 26 percent on India for a period of 90 days, until July 9. The decision, announced via an executive order from the White House, follows US President Donald Trump’s move on April 2 to impose sweeping universal tariffs on nearly 60 countries.
While the baseline 10 percent duty remains, the three-month pause provides crucial breathing space for Indian exporters and policymakers to push for a broader trade agreement with the US.
2) Trade deal push gains momentum: The temporary relief is expected to give momentum to ongoing discussions around a bilateral trade agreement (BTA) between the two countries.
The government is reportedly pursuing a three-pronged strategy aimed at deepening trade relations, enhancing market access, and safeguarding domestic industries.
Partial trade deal with US within 90 days likely; India to focus on three key fronts
3) India gains edge over regional peers: Unlike India, others including China, Hong Kong and Macau, have not been granted the tariff pause. This could offer Indian exporters a competitive advantage in the short term.
Technical Analysts
Commenting on the market outlook, Anand James, Chief Market Strategist at Geojit Financial Services, said, “Volatility is expected to remain elevated as the market digests the news flow post the mid-week holiday. While our earlier view was that markets could attempt another upswing, a clear upside target was avoided as the India VIX stayed above 21.”
He added that a break above 23,140 on the Nifty could trigger a fresh wave of buying. “If the index floats above 22,850, strength may continue. However, a dip towards 22,500 may attract renewed buying interest. Any weakness below 22,350 could drag the market, though a fall below 22,160 appears unlikely for now,” James said.
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