MUMBAI: Stock markets staged a sharp rebound on Tuesday as US President Donald Trump’s decision to delay tariffs on Mexico and Canada trumped concerns over global uncertainties, lifting investor sentiment.
The benchmark Sensex surged 1,397.07 points (1.81 per cent) to close at a one-month high of 78,583.81, while the Nifty jumped 378.20 points (1.62 per cent) to 23,739.25, a level last seen on January 3.
The rally was led by strong gains in Larsen & Toubro, which soared nearly 5 per cent. Adani Ports, IndusInd Bank, Tata Motors, Reliance Industries, UltraTech Cement, and Asian Paints also posted robust gains.
Meanwhile, ITC Hotels, Zomato, Nestle, and Maruti were among the few laggards.
Asian markets mirrored the upbeat mood, with Seoul, Tokyo, and Hong Kong ending significantly higher. However, European markets traded mostly lower, while US markets closed in the red on Monday.
“Yesterday, the Indian market struggled to absorb the optimism from a strong Union Budget amid concerns over Trump’s tariff war.
Global sentiments rebound
But as global sentiment rebounded with the tariff delay, domestic equities surged sharply,” said Vinod Nair, Head of Research, Geojit Financial Services.
Brent crude prices slipped 1.05 per cent to $75.16 per barrel, adding to the positive market cues. Meanwhile, Foreign Institutional Investors (FIIs) offloaded Rs3,958.37 crore worth of equities on Monday, even as the domestic indices closed lower. The Sensex had fallen 319.22 points (0.41 per cent) to Rs77,186.74, while the Nifty dropped 121.10 points (0.52 per cent) to Rs23,361.05.
With global risk appetite improving, markets could remain buoyant in the near term, analysts said.
