Sensex soars 500 points as Trump halts tariffs

Indian markets opened strong today as Trump put tariff on hold for a month. Investors are happy with this and are up across the board.

Nifty opened at 23509.90, up 148.85 points (0.64%) and Sensex at 77687.60, up 500.86 points (0.65%).

Experts say the temporary halt on tariffs will help the market recover from Monday’s losses. And now investors are focussed on the Union Budget which was earlier overshadowed by trade concerns.

Ajay Bagga Banking and Market Expert told media "Trading on Trump Narratives is extremely harmful. From Currency markets to stock markets to commodities to even crypto assets, markets moved again on Monday night/Tuesday morning as Mexico and Canada obtained a 30-day respite from Trump Tariffs in return for upgrading their border controls, ramping up the fight against drug trafficking and agreeing to negotiate a new agreement".

He further stated "Indian market futures are indicating a positive opening. The positives of the Union Budget should help the markets. The other positive forecast is the Indian central bank, RBI may start a rate cut cycle on Friday, Feb 7th. Expect short covering to dominate today as markets try to take the US and Asian lead today and recover some lost ground".

Ajay Bagga Banking and Market Expert told media "Trading on Trump Narratives is extremely harmful. From Currency markets to stock markets to commodities to even crypto assets, markets moved again on Monday night/Tuesday morning as Mexico and Canada obtained a 30-day respite from Trump Tariffs in return for upgrading their border controls, ramping up the fight against drug trafficking and agreeing to negotiate a new agreement".

"The nifty ended in the red for the second day but not before staging a recovery from the day's lows. Broader benchmarks underperformed, but the nifty's long lower shadow showed that in the near-term, bulls remain in the game. Support spans the 23062 - 23200 zone, with near-term resistance seen in the 23386 - 23574 area with an extension near 23670. The index is still inside the falling channel originating from the 20th December lows, but yesterday's drop held the 20-dma on a closing basis, so at least for now, bulls seem to have the edge" said Akshay Chinchalkar, Head of Research, Axis Securities.

"The nifty ended in the red for the second day but not before staging a recovery from the day's lows. Broader benchmarks underperformed, but the nifty's long lower shadow showed that in the near-term, bulls remain in the game. Support spans the 23062 - 23200 zone, with near-term resistance seen in the 23386 - 23574 area with an extension near 23670. The index is still inside the falling channel originating from the 20th December lows, but yesterday's drop held the 20-dma on a closing basis, so at least for now, bulls seem to have the edge" said Akshay Chinchalkar, Head of Research, Axis Securities.

Its positive momentum also did not stop at Indian markets since Asian markets also surged strongly during the day. Japan's Nikkei 225 leaped over 1 per cent, Hong Kong's Hang Seng index soared 2.48 per cent, and South Korea's KOSPI rose to 1.5 per cent.