- Sensex gains 270 points, Nifty reclaims 25,500 amid late buying.
- Rupee rises 0.23% as crude prices ease and trade optimism grows.
- U.S. tariff extensions spark cautious optimism across global markets.
Indian equity markets ended Tuesday on a positive note, with the Sensex climbing over 270 points and the Nifty closing at 25,522. The gains were driven by late-session buying in sectors like real estate, banking, and infrastructure.
The broader sentiment remained cautious amid ongoing tariff-related tensions triggered by U.S. President Donald Trump. His decision to delay implementing reciprocal tariffs until August 1 provided temporary relief, but uncertainty looms.
Tariff Pause Lifts Market Mood; Rupee Finds Support Amid Crude Decline
The Indian rupee appreciated by 0.23% to close at 85.65 against the U.S. dollar, supported by softer crude oil prices and reduced foreign investor outflows. Analysts suggest the currency may trade within a narrow band of 85.25 to 86.00 in the near term. Market sentiment was also bolstered by optimism surrounding India’s extended trade negotiations with the U.S., now pushed to August 1.
Realty and banking stocks led the domestic rally, reflecting underlying investor confidence in domestic growth sectors. The Nifty Realty index outperformed broader indices, buoyed by expectations of sustained urban demand and infrastructure policy support. Private banks also gained, riding on improved credit demand forecasts and Q1 earnings momentum.
In contrast, global markets showed restraint as investors processed Trump’s evolving trade stance. While Tokyo and Seoul were formally notified of tariffs, major economies like the EU and Taiwan were left off the initial list. This has sparked debate over whether the U.S. is negotiating in private or planning phased announcements.
U.S. market indicators like the S&P 500 and Nasdaq-100 futures traded marginally higher. Treasury yields ticked up slightly, and the dollar weakened against most major currencies. The Cboe Volatility Index (VIX) fell, signaling mild investor relief. However, with no final trade deals confirmed, market volatility remains a near-term risk.
Despite global trade uncertainties, Indian markets showed strength through domestic sectoral support and a strengthening rupee. Investors now await clearer cues from trade talks and Q2 corporate earnings.
“The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
