Mumbai: Benchmark stock market indices have bounced back. Both the Sensex and Nifty50 jumped 6% in just two trading sessions. This also indicates a massive drop in volatility. At around noon on Tuesday, Sensex was trading 1,600 points or 2% higher, while the Nifty50 gained nearly 500 points, also above 2%.
Know the gainers & losers: Most broader market indices, including the small-cap and mid-cap segments, registered strong gains during the session. Gains were broad-based. Auto, banking, financial services, realty and metal sectors led the charge. Heavyweight stocks, including Reliance Industries, HDFC Bank, Bharti Airtel, ICICI Bank and SBI, rose sharply. Only four Nifty50 stocks were trading in the red.
Reason for rebound: But what has led to the markets to rebound? Well, this has come after US President Donald Trump hinted at more tariff pauses. Trump administration has also announced that electronics such as smartphones, computers, and others will be exempted from the individual reciprocal tariffs over the weekend.
Earlier, the markets across Asia had crashed after Trump’s ‘Liberation Day’ tariff announcements. But his 90-day halt on reciprocal tariffs also brought some relief and gave the markets a breather. But the base tariff of 10% on almost all US imports is still in place. Another relief is that Trump has hinted that he may exempt auto-related imports from the reciprocal tariffs. Following this, India saw a jump of 3% in auto shares on Tuesday, Reuters reported.
What should investors do now?
The sharp rebound in equity markets has reignited investor enthusiasm. But experts are urging caution amid ongoing global uncertainties, which are prevailing especially around US trade policy. The two-day rally may have delivered some much-needed relief. However, road ahead may have bumps and hurdles, opined analysts.
