Mumbai: Benchmark equity indices Sensex and Nifty surged over 2 per cent on Tuesday, tracking a rally in global markets after US President Donald Trump relaxed some of the tariffs on electronics products and hinted at duty revision for automobiles.
Rallying for the second straight session, the 30-share BSE Sensex jumped 1,577.63 points or 2.10 percent to settle at 76,734.89. During the day, it zoomed 1,750.37 points or 2.32 percent to 76,907.63, driven by the across-the-board rally.
The NSE Nifty surged 500 points or 2.19 percent to 23,328.55. Intra-day, it rallied 539.8 points or 2.36 percent to 23,368.35. The key indices have recovered almost all the losses induced by President Trump’s reciprocal tariffs announced on April 2.
All the BSE sectoral indices closed in the green. BSE Realty, Auto, Capital Goods and Industrials were lead gainers, jumping up to 5 per cent.
IndusInd Bank was the lead gainer among Sensex shares, surging by 6.84 per cent. Tata Motors rallied 4.50 percent. Larsen & Toubro, Axis Bank, Adani Ports, HDFC Bank, ICICI Bank and HCL Tech were also among the gainers.
ITC and Hindustan Unilever were the only laggards.
Trump has suggested that he might temporarily exempt the auto industry from tariffs that were imposed earlier.
“The rally is fuelled by the surprise pause in reciprocal tariffs which continued today led by the exemption on electronics goods also. Auto stocks gained on potential tariff relief and banking stocks benefited from deposit rate cuts.
“Domestically, the focus has shifted to the earnings season which has a weak forecast while global recovery and RBI’s accommodative stance are supporting sentiment,” Vinod Nair, Head of Research, Geojit Investments Limited, said.