Indian stock markets rallied more than 2% on Tuesday, following gains in Asian counterparts and a sharp rally in automobile stocks. The steep rise came after US President Donald Trump’s suggestion of rolling back earlier levied car import tariffs. This suggestion fueled global hopes, particularly in the automobile industry.
The Nifty rose by 455.90 points to 23,284.45, while the Sensex rose 1,578.84 points to close at 76,736.09. Auto stocks were the best performers with Tata Motors and Maruti Suzuki recording healthy gains. Trump’s erratic trade policy still spooked investors. The US Federal Reserve calmed investors, by signaling possible rate cuts.
Nifty, Sensex Post Strong Gains
Major Indian stock market indexes surged strongly. Nifty rose by 455.90 points, or nearly 2%, to 23,284.45. Sensex surged by 1,578.84 points, or 2.10%, and closed at 76,736.09. The advance was indicative of wider upbeat sentiment based on overseas cues and auto sector strength.
Asian markets also in green
Asian markets were strong following a volatile week. Japan’s Nikkei 225 increased 0.89%. Singapore’s Straits Times increased 1.4%. Hong Kong’s Hang Seng inched up 0.08%. South Korea’s KOSPI increased 0.7%, and Jakarta Composite increased 1.5%. Sydney, Taipei, Singapore, and Manila markets also traded higher.
Auto stocks lead the charge
Auto shares lifted market sentiment after Trump signaled potential support for the auto companies battered by his 25% tariff on car imports. Japan’s Mazda and Toyota rose 5%, Nissan increased over 3%, and Hyundai increased over 4%. On the Nifty, the Auto index jumped 3.27% to 21,220.40, higher by 671.75 points. Tata Motors rose 4.85% to ₹623.90, and Maruti Suzuki increased 2.08% to ₹11,840.00.
Trade war fears remain
Even with the relief, Trump’s erratic trade policy spooks investors. The US exempted smartphones, laptops, and semiconductors from fresh tariffs last week. But Trump hinted that the move could be temporary. Speculation about new tariffs on tech and pharma is keeping markets in check.
South Korea’s chip boost adds to optimism
South Korea revealed a $4.9 billion initiative to develop its chip sector. The initiative pushed up Samsung and SK hynix shares, contributing to regional market euphoria.
US Fed Governor Christopher Waller intervened to calm investor fears. He indicated that the Fed would be able to support rate cuts if necessary. If Trump reimposes tariffs from his April 2 “Liberation Day” action, the Fed stands ready to act to defend the economy.
