Mumbai:
After a strong rally in the US markets on Wednesday, the Indian stock markets were rapidly opened on Friday.
The bounce occurred after US President Donald Trump announced a 90-day adjournment of mutual tariffs for 75 countries including India, amidst a growing trade war with China.
BSE Sensex rose 1,061.26 points to open at 74,941.53, while NSE Nifty climbed 354.90 points to start the day from 22,754.05. The rapid growth in Indian equities reflected the better investor spirit after the temporary ease of global trade stresses.
Ajay Bagga, Banking and Market Expert, explained, “The Indian market will open up with a large scale due to an increase in the US market for 90 days due to an increase in the US market on Wednesday. However, due to a decline in US markets on Thursday, on Wednesday, on Wednesday, with a decline for more than 700, which is more than 700 on Wednesday, the marks, the marks, the marks, the SI positive open but the move on Wednesday.
He said, “With an Indian market holiday again on Monday, the posts will be reduced this afternoon. So a gap-up can end up with a flattened Indian market. The US dollar index is positive to 100 levels (DXY) is finally positive for EM flow, but emotion is delicate and enraged.
Following the midweek rally in the US markets, President Trump announced an immediate increase in tariffs on Chinese goods, in response to China’s decision to increase its tariff on US goods from 34 percent to 84 percent, effective from 10 April.
At the same time, Trump announced a 90-day stagnation on 75 countries engaged in trade talks with the US including India.
However, optimism was short -lived. The US markets reversed the syllabus on Thursday, in which Dow Jones Industrial Average fell by 1,014 points and Nasdaq declined by 4.5 percent. The constant uncertainty around the global trade policy overshadows the sentiments of investors.
Amid growing market volatility, gold prices in India increased to Rs 10 gram per time, as investors turned into safe-heaven assets. Japanese Yen and Swiss Frank also saw increased influx.
The US dollar index (DXY) fell to 100, which may eventually benefit the emerging markets, but analysts warned that Bhavna remains critical.
On the corporate front, the Tata Consultancy Services (TCS) reported below the market expectations, which can reduce their target prices for many brokerage IT veterans.
Connecting global concerns, an official of the White House confirmed that China’s average tariff rate would increase by 145 percent, further trade would intensify the stress.
With uncertainty, experts are advising investors to move forward with caution despite a short -term rally in equity.
(Except for the headline, the story has not been edited by NDTV employees and is published by a syndicated feed.)
