Synopsis
On February 4, the NSE Nifty 50 and BSE Sensex rallied as the US postponed tariff hikes on Canada and Mexico. This development ended a two-day market slide, with both indices showing significant gains during the morning trade.Key Takeaways
- The NSE Nifty 50 and BSE Sensex increased after US tariff delays.
- Eleven sectors advanced on the NSE.
- Market analysts view this as a strategic move by Trump.
- The Indian rupee fell to a record low.
- FIIs have been net sellers for the past 23 sessions.
Mumbai, Feb 4 (NationPress) The NSE Nifty 50 and BSE Sensex ended their two-day decline on Tuesday following the US administration's decision to postpone tariff increases on Canada and Mexico for an additional month.
As of 9:32 a.m., the Sensex surged by over 443 points, representing a 0.58% increase, reaching 77,630.71, while the Nifty climbed by 130.25 points or 0.56%, settling at 23,491.30.
On the NSE, eleven out of twelve sectors experienced gains, with only one sector declining. The Nifty FMCG sector lagged behind, while the Nifty Metal sector excelled.
Stocks such as Power Grid Corporation, ITC, Hindustan Unilever, and Asian Paints negatively impacted the Nifty 50 index, whereas Infosys, ICICI Bank, Mahindra and Mahindra, and L&T contributed positively.
Market analysts indicate that the recent global sell-off in equity markets has shifted with this news, as US President Donald Trump’s temporary halt on tariffs against Canada and Mexico, along with the initiation of negotiations, signals a strategic move.
Vikram Kasat, Head of Advisory at PL Capital-Prabhudas Lilladher, noted that over the weekend, Trump had enacted his prior warnings by imposing a 25% duty on Canada and Mexico, alongside a 10% tariff on China, arguing these actions are essential to mitigate migration and the flow of fentanyl into the United States. The Indian rupee fell to an all-time low, dropping past Rs 87 per US dollar for the first time on Monday.
New tariffs of 25% on imports from Mexico and Canada were set to take effect Tuesday due to concerns over undocumented migration and drug trafficking across their borders. A lower 10% increase is anticipated for China, with no discussions preceding it.
On February 3, foreign institutional investors (FIIs) continued their trend of net selling for the 23rd consecutive session, offloading equities worth Rs 3,958 crore, while domestic institutional investors (DIIs) purchased equities totaling Rs 2,708 crore on the same day.
The INDIAVIX index showed positivity, rising by 1.83% and trading at 14.3525.
