Lagatar24 Desk
Mumbai: Indian equity markets rebounded on Tuesday, snapping a two-day losing streak, after US President Donald Trump announced a one-month delay in tariff hikes on Canada and Mexico.
At 9:32 AM, the Sensex surged 443 points (0.58%) to reach 77,630.71, while the Nifty 50 gained 130.25 points (0.56%) to hit 23,491.30.
Despite the market rally, the Indian rupee continued its downward slide, hitting an all-time low of ₹86.98 against the US dollar in early trade.
Sectoral Performance
On the National Stock Exchange (NSE):
• 11 out of 12 sectors registered gains, with Nifty Metal emerging as the best-performing sector.
• Nifty FMCG was the worst performer, dragged down by stocks like ITC, Hindustan Unilever, and Asian Paints.
• Heavyweights like Infosys, ICICI Bank, Mahindra & Mahindra, and Larsen & Toubro contributed positively to the index.
Market Reaction to Trump’s Tariff Decision
According to market analysts, the temporary freeze on tariffs against Mexico and Canada is a strategic move by Trump to ease market concerns and initiate fresh negotiations.
Vikram Kasat, Head-Advisory at PL Capital-Prabhudas Lilladher, highlighted that over the weekend, Trump imposed a 25% tariff on Canada and Mexico and a 10% levy on China, citing concerns over migration and fentanyl trafficking.
However, additional 25% tariffs on imports from Mexico and Canada were set to take effect from today, but the decision was delayed by a month to allow for talks.
Foreign Institutional Investors (FIIs) Activity
On February 3, Foreign Institutional Investors (FIIs) remained net sellers for the 23rd consecutive session, offloading equities worth ₹3,958 crore. Meanwhile, Domestic Institutional Investors (DIIs) stepped in, purchasing stocks worth ₹2,708 crore.
Market Volatility
The India VIX (Volatility Index) rose by 1.83%, reaching 14.3525, signaling increased market uncertainty amid global economic developments.
