MUMBAI: Indian markets are likely to open with a sharp gap-up on Friday, tracking global gains after US President Donald Trump announced a 90-day suspension of new tariffs on all countries except China.
The move follows a steep global selloff earlier in the week, which wiped out trillions in investor wealth. Markets rebounded sharply after the pause, with the S&P 500 jumping 9.5 per cent and Japan’s Nikkei rising 9 per cent. Asian and European indices rallied 5-6 per cent.
Stocks, which had ended lower on Wednesday on BSE and NSE post the RBI’s 25-basis-point rate cut, are expected to benefit from improved sentiment. Analysts expect a 3-5 per cent gap-up in Indian markets indices, as the easing of trade tensions boosts risk appetite.
Gift Nifty futures were up nearly 750 points at 23,238 on Thursday, pointing to a strong start when markets reopen after the Mahavir Jayanti holiday.
“The tariff pause is a breather that improves sentiment across Asia. With India not directly targeted and potential trade gains emerging from stricter action on China, Indian equities are likely to see renewed interest,” said Prashanth Tapse of Mehta Equities.
TCS results
TCS’s March quarter results, released on Thursday, will also influence early trade. Meanwhile, India VIX remains elevated at 21.43, indicating ongoing caution.
“The temporary halt reduces immediate uncertainty and allows room for strategic adjustments. However, inflation and central bank actions remain key drivers of volatility,” said Trivesh of Tradejini.
A firmer rupee, gold gains, and a softer dollar also reflected a shift to risk-on sentiment globally. Crypto tokens rallied sharply as well.
“The tariff pause has injected fresh optimism and improved liquidity conditions,” said Himanshu Maradiya of CIFDAQ Group. “This may mark the beginning of a broader rebound in growth sentiment.”
