There is a rebound in the Indian benchmark indices as the US President has decided to keep smartphones, computers and other electronic items out of the proposed tariff over the weekend.
Benchmark equity indices zoomed in early trade on Tuesday amid positive global cues as investors’ sentiment became buoyant after US President Donald Trump announced some relaxation on electronics for now. The 30-share BSE benchmark Sensex jumped 1,750.37 points to 76,907.63 after the market opened today following three days of holiday. Similarly, the NSE Nifty surged 539.8 points to 23,368.35.
Tremendous buying is being seen in largecap, midcap and smallcap stocks. The BSE Midcap and Smallcap indices gained over 1.50 per cent in the opening trade. But what has led to this rebound in the stock market? Let us tell you the key reasons behind the return of bulls on Dalal Street.
The rebound in the Indian benchmark indices comes as the US President has decided to keep smartphones, computers and other electronic items out of the proposed tariff over the weekend. Along with this, there are reports that Trump is expected to give some relief to auto companies.
Earlier, Trump postponed the tariff imposed on countries around the world, except China, for 90 days. This indicated that Trump is softening his stand on tariff policy. After this news, there was a boom in the markets of the world, including America. However, the Indian stock market was closed due to Ambedkar Jayanti. Therefore, its effect is visible in the Indian market today.
Stock market experts believe that buying has returned from lower levels due to the possibility of a reduction in the trade war. Due to this, buying is being seen all around in the market. Apart from this, inflation data for the month of March will be out today. Inflation is expected to remain below RBI’s target of 4 per cent. This means that the hope of the repo rate cut will increase once again.
After the repo rate cut by RBI, many banks have made loans cheaper. This has also given a boost to the market. Quarterly results of companies have started coming. Better results are expected in this quarter. In this hope, too, the market has rebounded.
