On April 15, 2025, Indian stock markets witnessed a sharp rally after the United States government announced a 90-day pause on the implementation of new tariffs. The news reverberated positively across global equity markets, including India, as investors welcomed the temporary relief from rising trade tensions.
The delay specifically excluded smartphones, computers, and other electronics from immediate tariff hikes, signalling easing pressure on the global supply chain. This development provided a significant boost to sectors closely tied to international trade, particularly auto and technology.
The impact of the announcement was clearly visible on the Indian bourses. The NSE NIFTY50 rose by 2.13% to 23,314.30, while the BSE SENSEX gained 2.07%, reaching 76,706.
Notably, this rally came after a week of subdued performance amid global market uncertainty. The positive shift in sentiment was enough to reverse the short-term bearish trend, with both frontline indices touching multi-week highs.
The bullish sentiment wasn't limited to large-cap stocks. The Nifty midcap 100 and Nifty smallcap 100 rose by 2.46% and 2.93%, indicating widespread buying interest.
All 13 major sectoral indices on the National Stock Exchange (NSE) are in the green, further confirming the strength of the rally. Traders and institutional investors increased their exposure across diverse segments, including banking, infrastructure, and FMCG.
In currency markets, the Indian rupee appreciated by 39 paise to the current foreign exchange rate of ₹85.71 against the US dollar. This upward move came as the dollar index weakened and capital inflows into Indian equities increased in hopes of improving global trade conditions.
Forex traders cited the US tariff delay as a significant factor boosting emerging market currencies, including the rupee. Strengthening currency is also expected to benefit import-heavy sectors in the near term.
While the rally brought a wave of relief, analysts advise caution. The 90-day window provides only temporary respite, and much depends on subsequent trade negotiations and macroeconomic developments.
Market experts suggest that investors should remain watchful of upcoming global events, including inflation data, Federal Reserve commentary, and geopolitical cues that could influence sentiment further.
Whether this rally will be sustained depends largely on how negotiations unfold over the next quarter. For now, investors and market watchers will keep a close eye on evolving trade dynamics and global central bank actions.
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