Mumbai,apr 11
Indian stock markets opened sharply higher on Friday, following a strong rally in the US markets on Wednesday.The surge came after US President Donald Trump announced a 90-day postponement of reciprocal tariffs for 75 countries, including India, amid an escalating trade war with China. The BSE Sensex jumped 1,061.26 points to open at 74,941.53, while the NSE Nifty climbed 354.90 points, starting the day at 22,754.05. The sharp uptick in Indian equities reflected improved investor sentiment after the temporary easing of global trade tensions. Ajay Bagga, banking and market expert, explained, “Indian markets will open with a gap up largely due to the Wednesday US market surge following the Trump reciprocal tariffs postponement for 90 days. However, the Thursday fall in the US markets led to a fall in the Gift Nifty as well. Hence, versus a 700 plus rally on Wednesday, on Friday morning, the Gift Nifty premium to the domestic Nifty future close of Wednesday afternoon is down to 400 points, Si positive open but momentum is reduced.”He added, “With Monday again being an Indian market holiday, positions will be reduced this afternoon. So a gap-up open could end with a flattish Indian market. The US dollar index falling to 100 levels ( DXY) is positive for EM flows eventually, but the sentiment is fragile and frayed. So, caution is advised. Gold has seen sustained inflows as safe haven buying has gone into gold, Japanese yen and Swiss Franc.” The midweek rally in US markets came after President Trump announced an immediate increase in tariffs on Chinese goods to 125 per cent, in response to China’s decision to hike its tariffs on US goods from 34 per cent to 84 per cent, effective April 10.At the same time, Trump announced a 90-day pause on imposing higher tariffs on 75 countries engaged in trade negotiations with the US, including India.
