Domestic Stock Market Strengthens Following US Tariff Decision. Sensex Surges 500 Points to 77,720, Nifty Crosses 23,500. Positive Signals from Global Markets.
Stock Market Update: Domestic stock markets opened bly on Tuesday (February 4th). Investors found relief in US President Donald Trump's decision to postpone proposed tariffs on Mexico and Canada for 30 days. Previously, Trump's Saturday announcement of a 25% tariff on goods from Canada and Mexico had put pressure on the market.
Significant Gains in Sensex and Nifty
The BSE Sensex opened with a 500-point surge on Tuesday, reaching 77,687. It had closed at 77,186 on Monday. At 9:25 AM, the Sensex was trading at 77,720, up 533.23 points or 0.69%.
The National Stock Exchange (NSE)'s Nifty50 also saw a recovery. At 9:27 AM, it reached 23,530.10, up 169 points or 0.72%.
Previous Session Performance
The stock market was under pressure on Monday. The Sensex closed down 319.22 points or 0.41% at 77,186.74, while the Nifty50 fell 121.10 points, closing at 23,361.05.
Global Market Indicators?
Following Trump's postponement of the tariffs, Asian markets saw a surge on Tuesday.
Japan: Nikkei Index up 1.53%, Topix Index up 1.25%.
South Korea: Kospi Index up 2.06%.
Australia: ASX200 Index closed up 0.4%.
However, the US stock market experienced a decline.
Dow Jones: Down 0.28%.
S&P 500: Down 0.76%.
Nasdaq Composite: Down 1.2%.
Focus on the Domestic Market
Following Budget 2025, investors are focused on quarterly results and the activities of Foreign Institutional Investors (FIIs). This week will see the release of results from companies such as Titan, Tata Power, Torrent Power, and Thermax. The market will also be watching the results of Power Grid, HFCL, Tata Chemicals, and Garden Reach Shipbuilders.
BSE Launches Sensex Derivatives Contracts
The Bombay Stock Exchange (BSE) has launched Sensex derivatives contracts at the International Financial Services Centre (IFSC) in Gujarat's GIFT City. These contracts will be denominated in US dollars and traded on the BSE's India INX exchange located in GIFT City.
Activity in the IPO Market
This week will also see activity in the IPO market.
- Dr. Agarwal's Healthcare (Mainline) and Malpani Pipes (SME) IPOs will soon be listed.
- Chamunda Electricals (SME) IPO will open for subscription to investors.
- Shiprocket is planning an acquisition in 2025 and preparing for its listing.
Commodity Market Update
- Gold Prices Surge
- Gold prices strengthened on Monday.
- Gold rose 0.8% to $2,818.99 per ounce.
- US gold futures climbed to $2,857.10.
- Investors sought safe haven investments to hedge against the impact of tariffs.
Slight Increase in Oil Prices
- Brent Crude: Up 0.4% to $75.96 per barrel.
- US WTI: Up 0.9% to $73.16 per barrel.
However, oil prices fell to a one-month low after the expiry of an expensive contract.
