Market Surge: Indian Stocks Soar on Global Trade Optimism

Indian stock markets experienced a significant rally amid global optimism and potential easing of US-China trade tensions. The Nifty 50 and BSE Sensex saw sharp increases, driven by US signals of tariff relief. Investors are hopeful for continued positive developments in trade policies.

Indian stock markets commenced trading on a positive note Tuesday, buoyed by global optimism and potential easing of US-China trade tensions. The unprecedented surge followed US government indicators suggesting possible tariff relief, which investors perceive as a prelude to a comprehensive trade deal between the two economic giants.

The Nifty 50 index soared by 539.80 points, equal to a 2.36% rise, opening at 23,368.35, while the BSE Sensex climbed 1,679.20 points, or 2.23%, beginning the day at 76,836.46. Market sentiment was further boosted by US President Donald Trump's potential announcement of additional trade concessions, notably within the semiconductor and electronics sectors.

Ajay Bagga, a noted banking and market expert, remarked to ANI, 'Indian markets are set to focus on the positives today. The most severe phase of Trump's tariff measures appears to be over, at least temporarily. Investors will monitor earnings and management guidance for clarity amid Trump's policy ambiguity. India remains a robust structural domestic story, likely to attract some FPI flows once the policy is solidified.'

Recent pronouncements from US customs involved temporary tariff exemptions on critical consumer and industrial electronics, like semiconductors. Nevertheless, US Commerce Secretary clarified this relief's transient nature, while Trump indicated new semiconductor tariffs could be incoming next week.

This scenario triggered a positive response in global markets. Asian, European, and US stock exchanges all concluded higher on Monday. Notably, US Big Tech stocks witnessed over a 6% uptick in pre-market trading. Meanwhile, Indian investors maintained their market confidence; despite constrained liquidity in March, SIP investors contributed over Rs 25,000 crore into equity mutual funds, reinforcing market stability.

Involved market participants revealed Foreign Institutional Investors (FIIs) as net sellers in the latest session on April 11, extracting Rs 2,519 crore, while Domestic Institutional Investors (DIIs) net acquired Rs 3,759 crore. Some major Indian firms, including ICICI Lombard General Insurance and Indian Renewable Energy Development Agency, are anticipated to disclose their March quarter earnings today.

In broader Asia, Taiwan's weighted index increased over 1.6%, South Korea's KOSPI gained 0.79%, Japan's Nikkei 225 improved by 0.88%, and Hong Kong's Hang Seng lifted 0.07%. Meanwhile, US markets closed with gains Monday; the Dow Jones rose 0.78%, NASDAQ 0.64%, and the S&P 500 increased by 0.79%.

Investors are keenly observing for any forthcoming statements from the US administration that might reshape trade perspectives and sway market movements. (ANI)

(With inputs from agencies.)