Sensex, Nifty erase losses from US reciprocal tariffs imposed on April 2

India’s equity benchmarks joined a global relief rally on Tuesday after US President Donald Trump signalled more tariff exemptions, helping the domestic indices recoup all their losses since the levies were announced on April 2. 

Rallying for a second straight session, the 30-share BSE Sensex jumped 1,577.63 points, or 2.1 per cent, to settle at 76,734.89. The National Stock Exchange’s Nifty 50 surged 500 points, or 2.2 per cent, to finish the session at 23,328.55. Both indices posted their sharpest single-day gains in five months. 

The market capitalisation of BSE-listed companies jumped ₹10.7 trillion to touch ₹412.2 trillion.

  The India Vix index, a measure of market volatility, cooled 20 per cent to touch 16.13, calming the frayed nerves of investors.

 

  With Tuesday’s rebound, India became the first major market to fully recover from Trump’s tariff blitz announced earlier this month.

  The two-day rally follows Trump’s announcement of a 90-day pause on additional tariffs for nations in trade negotiations while maintaining a 10 per cent baseline import duty. The exemptions were also extended to smartphones, computers, and other electronic items.

  On Monday, Trump hinted at a temporary reprieve on auto tariffs to allow manufacturers time to establish US operations, though no timeline was specified. The move came ahead of planned 25 per cent duties on imported vehicles and auto parts slated for next month.

  However, the Trump administration is proceeding with investigations into tariffs on semiconductor and pharmaceutical imports, keeping investors on the edge. 

  While the pause has spurred optimism, frequent policy shifts have heightened volatility and stoked fears of a US recession.

  Global markets remain jittery amid sweeping tariffs and unpredictable trade policies. The commodities market also reflected the uncertainty, with Brent crude dipping to $65.6 — down 13 per cent since April 2 — even as gold held steady at $3,222 per ounce. The dollar index edged higher to 99.68.

  “Pessimism dragged markets down, so any positive news triggers a rebound,” said Amar Ambani of Yes Securities. “India is relatively resilient due to its domestic focus and a measured tariff approach. Without fresh catalysts, profit-taking will cap gains for the next 3-6 months.”

  Market breadth remained strong, with 3,302 stocks advancing on the BSE and 785 declining.

  Except ITC, all Nifty components ended in the green. The broader Nifty Midcap 100 and Nifty Smallcap 100 indices rose about 3 per cent each.

  "We expect positive momentum to continue in the market, hoping for global trade settlements and softening in US reciprocal tariffs. Meanwhile, sector-specific action could be seen on the back of quarterly results and insights from management commentary," said Siddhartha Khemka, head of research and wealth management, Motilal Oswal Financial Services.