The Indian stock market bounced back sharply on Tuesday with its biggest uptick in a month, fuelled by the U.S. administration’s decision to pause the proposed blanket tariffs of 25% on goods imports from Canada and Mexico that had spooked global markets and currencies on Monday.
The S&P BSE Sensex gained 1,397 points, or 1.81%, to close at 78,584, while the NSE Nifty recovered 378 points or 1.62% to 23,739. The BSE Midcap and Smallcap indices were up 1.35% and 1.2%, respectively.
The Rupee, which had closed at an all-time low of 87.11 against the U.S. dollar on Monday with a sharp 0.6% drop, recovered slightly to 87.07 on Tuesday in line with mild gains for other currencies after what forex players termed ‘a choppy trading session’.
“The Dollar index was flat on Tuesday afternoon and crude oil prices eased further, while gains in the domestic equity markets also lent support to the Rupee,” said Sriram Iyer, senior research analyst at Reliance Securities.
Almost all sectoral stock indices picked up steam, including the Nifty public sector enterprises index (up 2.7%), and bank and infrastructure indices that rose 2.4% each.
Published – February 04, 2025 11:46 pm IST
