Stock market rallied following positive trends in Asian markets after the US suspended planned tariffs on Canada and Mexico. (AI image)
Stock market today
: BSE Sensex and Nifty50, the Indian equity benchmark indices, rallied strongly in trade on Tuesday. While BSE Sensex went above 78,600, Nifty50 was above 23,750 intraday. BSE Sensex ended the day at 78,583.81, up 1,397 points or 1.81%. Nifty50 closed at 23,739.25, up 378 points or 1.62%.
Indian benchmark indices showed significant gains on Tuesday, following positive trends in Asian markets after the US suspended planned tariffs on Canada and Mexico, reducing global trade tensions.
The market value of BSE-listed firms increased by Rs 3.4 lakh crore to Rs 423.70 lakh crore, according to an ET report.
Why BSE Sensex, Nifty50 rallied today?
1) US President Donald Trump’s decision to delay tariffs on Canada and Mexico for 30 days has positively influenced markets. The pause comes with conditions, including Canada’s efforts against fentanyl and Mexico’s border security measures.
2) The dollar index decreased 0.56% to 108.90, with the euro falling 0.67% to $1.0293. This decline followed Trump’s tariff suspension and US manufacturing data, suggesting the Federal Reserve might maintain current rates in March.
3) Asian markets showed strong performance, with Japan’s Nikkei increasing 1.6% to 39,140.41 and Hong Kong’s Hang Seng rising 2.5%. US equity futures also showed positive movement, with S&P 500 futures increasing by 0.4%.
4) The automotive sector demonstrated significant growth, with the Nifty Auto index rising 1.8%. Major manufacturers reported strong January sales, with Maruti Suzuki India achieving record-breaking sales of 212,251 units. Eicher Motors reported a 20% increase in motorcycle sales, while Hero MotoCorp’s total sales grew by 2.13%.
5) Twelve out of thirteen major sectors showed positive movement, with small and mid-cap stocks rising 1%. Leading companies like Infosys, Tata Motors, and Larsen & Toubro showed strong gains.
“We had started yesterday with expectation of expecting, as momentum had slowed down. But, despite multiple downside attempts, the downside marker placed at 23190 stayed intact, encouraging us not to switch sides yet,” said Anand James, Chief Market Strategist at Geojit Financial Services.
“This would mean that we are still okay with playing the 23700-840 objectives, but we expect 23440 to resist, while inability to float above 23320 could take away the upside momentum,” James added.
FIIs sold equities worth Rs 3,958.37 crore on Monday. The BSE Sensex ended its five-day positive streak, declining by 319.22 points, while the Nifty fell by 121.10 points.
