Indices recover 2% on renewed undercurrent

Investors' wealth surges by `5.95 lakh crore

FPJ News Service mumbai

Pivotals recovered on Tuesday on renewed undercurrent and positive investor sentiment. Blue-chip scrips Larsen & Toubro rallied nearly five per cent. Adani Ports, IndusInd Bank, Tata Motors, Reliance Industries, UltraTech Cement and Asian Paints were among the top gainers.

“Sensex and Nifty bounced back, and recorded nearly two per cent in line with a recovery in Asian peers after Mexico and US reached a one-month agreement to stave off tariffs.  The 30-share BSE Sensex jumped 1,397.07 points or 1.81 per cent to settle at a month's high of 78,583.81. During the day, it surged 1,471.85 points or 1.90 per cent to 78,658.59. The NSE Nifty soared 378.20 points or 1.62 per cent to 23,739.25, a level not seen since January 3.

“Investors added Rs 5.95 lakh crore to their wealth on Tuesday. “In real terms, tariffs, if imposed will harm US, and it’s an irrefutable fact the Trump’s pursuit of tariffs will make the world poorer—and technically, America is no exemption,” a senior economic advisor said.

The 25% tariffs on Mexico were set to go into effect Tuesday, despite an existing FTA between the two countries that wasn’t up for renegotiation until 2026. By midday Monday, Trump's 25% tariff on Canadian goods and a 10% tariff on Chinese goods still appeared on course to begin Tuesday.

A looming trade war, and the threat of which sent global markets tumbling on Monday. FIIs in Mumbai had offloaded equities worth Rs 3,958.37 crore. In Asian markets, Seoul, Tokyo and Hong Kong also bounced back and were trading higher. Agencies add: "On Monday, the market struggled to absorb the optimism generated by the Union Budget due to heightened geopolitical risks stemming from 'Trump tariff war'. However, India could outperform in a weak global market, and as a rebound has been triggered in the global sentiment, it has fuelled a sharp surge in domestic equities," analysts said.