Despite the noise of POTUS Donald Trump singling out India as one of the major tariff slappers to the US, the optimism around the incoming bilateral trade agreement (BTA) in the upcoming week seems to have reflected on Indian equities on Wednesday.
Market benchmarks Sensex and Nifty saw green on Thursday morning as they joined the rest of the Asian markets over optimism for the India-US trade deal.
The BSE Sensex soared by more than 410 points to hit a morning high of 83,820.71, while the NSE Nifty jumped by over 120 points to a 25,576.70 high.
Market watchers attributed the jump to hopes of the impending BTA and reducing tariffs on Vietnam. Prashanth Tapse of Mehta Equities said, “Trump announced a trade deal reducing Vietnam’s tariff to 20 per cent from 46 per cent, raising hopes that India’s effective tariff rate may settle around 15 to 18 per cent.”
V.K. Vijayakumar of Geojit Investments, earlier in the day, told agencies, “Nifty is likely to trade in the 25,200-25,800 range for some more time till a trigger breaks the range. A positive trigger can come from a possible India-US trade deal to be announced in a few days.”
In the 30-pack Sensex, Mahindra, Eternal, Asian Paints, HDFC Bank, and Tata Motors were the biggest gainers, offsetting losses led by Trent, Kotak Bank, Bajaj Finserv, and Bajaj Finance.
Among the major Asian indices, Kospi (South Korea), Nikkei 225 (Japan) and SSE Composite (Shanghai, China) were in the green. Only Hong Kong’s Hang Seng was in the red.
Thursday morning’s trade marks major recovery from Wednesday, when it saw the Sensex settle 287.60 points lower at 83,409.69 and the Nifty losing 88.40 points to close at 25,453.40.
