Mumbai (Maharashtra) [India], February 4 (ANI): Indian stock markets opened on a strong note on Tuesday, tracking positive global cues after former U.S. President Donald Trump decided to pause tariff imposition for a month. Investors reacted positively to the development, leading to gains across major indices.
The Nifty 50 index opened at 23,509.90, marking a gain of 148.85 points (0.64 per cent), while the BSE Sensex surged 500.86 points (0.65 per cent) to start the session at 77,687.60.
Experts stated that the temporary halt on tariffs will help the market recover from Monday’s losses. Additionally, investors are now shifting their focus to the Union Budget, which was previously overshadowed by trade concerns.
Ajay Bagga Banking and Market Expert told ANI “Indian market futures are indicating a positive opening. The positives of the Union Budget should help the markets. The other positive forecast is the Indian central bank, RBI may start a rate cut cycle on Friday, Feb 7th. Expect short covering to dominate today as markets try to take the US and Asian lead today and recover some lost ground”.
He further stated that “Trading on Trump Narratives is extremely harmful. From Currency markets to stock markets to commodities to even crypto assets, markets moved again on Monday night/Tuesday morning as Mexico and Canada obtained a 30-day respite from Trump Tariffs in return for upgrading their border controls, ramping up the fight against drug trafficking and agreeing to negotiate a new agreement”.
Most sectoral indices on the NSE were in the green, except for Nifty FMCG, which traded in negative territory. Nifty Auto led the gains with a 1.58 per cent surge, while Nifty PSU Bank jumped by more than 1.72%, reflecting investor confidence in the banking sector.
Out of the 50 stocks in the Nifty 50 index, 40 stocks were in the green, while 11 stocks traded lower at the time of reporting. The broader market sentiment remained upbeat, backed by improving global cues.
“The nifty ended in the red for the second day but not before staging a recovery from the day’s lows. Broader benchmarks underperformed, but the nifty’s long lower shadow showed that in the near-term, bulls remain in the game. Support spans the 23062 – 23200 zone, with near-term resistance seen in the 23386 – 23574 area with an extension near 23670. The index is still inside the falling channel originating from the 20th December lows, but yesterday’s drop held the 20-dma on a closing basis, so at least for now, bulls seem to have the edge” said Akshay Chinchalkar, Head of Research, Axis Securities.
The positive momentum was not limited to Indian markets, as Asian markets also witnessed strong gains. Japan’s Nikkei 225 climbed over 1 per cent, Hong Kong’s Hang Seng index surged 2.48 per cent, and South Korea’s KOSPI gained 1.5 per cent. (ANI)
