Today's Market Movers: Sensex and Nifty Leap on Tariff Relief Signals, 15th April 2025

Indian equity markets opened with significant strength today, reflecting a global broad-based rally fueled by indications of easing trade tensions from the United States. Both the benchmark indices, the BSE Sensex and the NSE Nifty, recorded strong gains in early trade.

Sensex and Nifty Surge at Open

The 30-share BSE Sensex jumped by a whopping 1,750.37 points to 76,907.63 during the early hours of trading. At the same time, the NSE Nifty 50 index jumped steeply by 539.8 points to 23,368.35. This strong opening indicates a good reaction from investors to the changing global economic scenario, especially regarding global trade policies.

Top Gainers and Laggards

Looking at the movement of individual Sensex constituents shows significant movements. Tata Motors showed appreciable strength, advancing by 5 per cent. Other notable gainers were leaders in the financial and infrastructure space, including Larsen & Toubro, HDFC Bank, Mahindra & Mahindra, ICICI Bank, and IndusInd Bank. Meanwhile, some counters went down, with Hindustan Unilever, Asian Paints, Nestle, and Kotak Mahindra Bank being the key laggards in the Sensex basket. This mixed performance within the broader index indicates nuanced reactions across different sectors.

Asian Markets Rally, Led by Kospi, Nikkei, Hang Seng

The buoyancy in Indian markets is consistent with positive direction seen in other key Asian markets. South Korea's Kospi, Tokyo's Nikkei 225, and Hong Kong's Hang Seng all closed in positive ground, reflecting a more widespread pickup in investor mood in the region. The Shanghai SSE Composite index alone defied this trend, quoting lower. This positive Asian sentiment comes after a higher close in US markets on the previous Monday.

Electronics Tariff Exclusion Sparks Global Buying

The main driver for this global equity rally seems to be US President Donald Trump's declaration of a temporary exclusion of smartphones, computers, and other electronics from tariffs. This move is being universally read by market participants as possibly a softening of the US position on trade, especially against China, hence giving a shot in the arm to global investor sentiment.

Potential Auto Tariff Relief Adds to Optimism

Adding to this positive tone, President Trump signaled on Monday his deliberation on tariffs exemptions for imported autos and auto components. In addition, the announcement of a 90-day tariff hiatus on all nations but China last week has added to speculation over a possible window of opportunity for trade talks and easing of global trade war tensions.

Analyst Take: Trump’s Trade Signals Lift Indices

Vikas Jain, Head of Research at Reliance Securities, pointed out the importance of these developments, saying, "Global indices across the US, Asia, and Europe gained 3-4 percent over Friday and Monday, after the US government excluded computers, and other electronics from reciprocal tariffs. This move is being seen as a significant softening of the US stance toward China, boosting global sentiment. Adding to the positive outlook, US President Donald Trump announced on Monday that he is considering exemptions on tariffs for imported vehicles and auto parts. Last week, he also declared a 90-day pause on tariffs for all countries except China, signalling a potential window for trade negotiations and easing global trade war concerns".

FII Outflows and Brent Crude Update

In spite of the general positive momentum, exchange data showed that Foreign Institutional Investors (FIIs) had sold shares worth ₹ 2,519.03 crore on the previous Friday. This indicates a difference between market sentiment at present, influenced by global cues, and recent foreign investment trends, which requires monitoring of investment flows to continue. In the meantime, the global oil benchmark Brent crude rose by a mere 0.09 per cent to USD 64.94 a barrel.

Momentum from Friday’s Rally

It is relevant to note that Indian equity markets were closed on Monday on account of a public holiday. Earlier, on Friday, the Sensex had already recorded a huge gain of 1,310.11 points (1.77 per cent) to close at 75,157.26, and the Nifty had risen by 429.40 points (1.92 per cent) to close at 22,828.55. Today's strong upside action is the continuation of this earlier momentum, highlighting the encouraging positive response to the changing narrative of global trade.

Outlook: Can Trade Policy Keep Markets Afloat?

Finally, the steep rally seen in Indian stock markets today is largely driven by the encouraging sentiment arising out of US President Trump's suggestions of relaxing tariffs on certain commodities and the implications for global trade relations in general. While these international signals are presently the overriding impetus behind market activity, investors will be watching closely for subsequent action on international trade policy and foreign investment flows trends to determine the longevity of this positive direction.

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