Synopsis : Markets opened strong on Friday with Nifty nearing 22,800 and Sensex jumping over 1300 points. A pause in US tariffs on India and a metal-pharma rally boosted investor sentiment.
A powerful rally swept Dalal Street on Friday, driven by positive global cues and relief over US President Donald Trump's decision to pause the 26% tariffs on Indian imports. Investors reacted swiftly, sending the Sensex soaring over 1,300 points and Nifty50 inching close to the 22,800 mark, signaling renewed confidence in the market's near-term prospects.
The bullish sentiment was broad-based. The BSE Small-cap and Mid-cap indices also traded in the green, indicating widespread buying across sectors. Metal and pharma stocks were the star performers of the day, with investors rushing to grab opportunities in sectors expected to benefit from global realignments in trade.
The positive momentum came despite escalating US-China tensions, after the White House announced a 145% effective tariff on Chinese goods — combining a 125% increase over an existing 20% base. China responded swiftly with an 84% tariff on US imports, reigniting fears of an extended trade war between the world’s two largest economies.
However, Trump’s 90-day tariff pause for most other countries, including India, helped soothe nerves. Investors found hope in the temporary truce, which offers room for negotiations and relief for exporters who had been bracing for impact.
Globally, Japan’s Nikkei 225 plunged 5.4% amid the volatility, and US indices faced sharp sell-offs, with Nasdaq dropping 4.6%. This global market shake-up had the potential to spill over into Indian markets, but strong domestic cues helped deflect the negative sentiment.
Adding to the rally, gold prices surged in the international market. Gold futures closed 3.2% higher at $3,177.50, marking their best day since April 2020. With a weekly gain of 4.7%, gold is on track for its strongest week since November 2024, indicating a flight to safety amid global uncertainty.
As the trading week closes, the focus remains on how India navigates the trade storm between the US and China, and whether this momentum on Dalal Street can sustain amid external pressures.
Disclaimer : This article is for informational purposes only. It does not constitute financial or investment advice. Readers are advised to consult with a certified financial advisor before making investment decisions.
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