Why the Sensex and Nifty Bounced Back
On Tuesday, the Indian stock market had a big comeback after a long weekend. The BSE Sensex shot up by 1,386 points, landing at 76,543, and the NSE Nifty climbed by 413 points, reaching 23,241.
The reason? The Trump administration in the US decided to ease up a bit on its tough trade rules. Over the weekend, they announced that electronic items like smartphones and laptops won’t be hit by the new extra tariffs for now. This move came after Trump had earlier threatened big tariff hikes that made stock markets in Asia nervous.
Also, Trump hit the pause button on these new tariffs for 90 days, which gave investors some breathing room. Even though the base tariff of 10% on most US imports is still there, this little break helped calm things down.
There was more good news for the auto sector too Trump hinted that car-related products might also be left out of these tariffs soon. Because of this, Indian auto stocks surged by 3% on Tuesday. Some of the big winners were Samvardhana Motherson (up 7%), Bharat Forge and Sona BLW (both up 6%), and Tata Motors (up 5%).
But It’s Not All Clear Yet
Even though the market is recovering, the US has made it clear that this tariff break is temporary. US Commerce Secretary Howard Lutnick said on Sunday that they’re only holding off for now, and new tariffs possibly on semiconductors and electronics could be coming in a month or two.
Trump later posted on his social media saying there wasn’t actually an exemption those products are just being moved to a different tariff category. He added that the US is planning a bigger investigation into semiconductors and the entire electronics supply chain as a national security issue.
So for now, it’s a temporary win for the markets but with a lot of uncertainty still hanging in the air.
Trump Eases Tariffs, Markets Cheer: Why Sensex & Nifty Are on a High
