Indian Markets Surge as Investors Gain ₹18.42 Lakh Crore
In a remarkable turn of events, Indian investors saw their wealth soar by ₹18.42 lakh crore over just two days, fueled by a significant rally in equity markets. This surge aligns with a global upswing following U.S. President Donald Trump’s recent tariff relief announcements on electronics and potential exemptions for automobiles. The BSE Sensex experienced a substantial rise, closing at 76,734.89 points, marking a two-day increase of 2,887.74 points or 3.91%.
Market Rally Driven by Global Trends
The Indian stock market has been buoyed by positive global cues, particularly following President Trump’s announcement regarding temporary tariff relief on consumer electronics. The 30-share BSE Sensex climbed by 1,577.63 points, or 2.10%, on Tuesday alone. This upward momentum reflects a broader optimism among investors, as the market capitalization of BSE-listed companies surged to ₹4,12,24,362.13 crore (approximately USD 4.81 trillion).
Prashanth Tapse, Senior VP of Research at Mehta Equities Ltd, noted that the buoyancy in global equity markets has significantly supported local benchmarks. However, he cautioned that falling crude oil prices and substantial foreign institutional investor (FII) outflows continue to create uncertainty in the market. Despite these challenges, the overall sentiment remains positive, with the BSE smallcap and midcap indices also recording impressive gains of 3.21% and 3.02%, respectively.
Sector Performance Highlights
The rally was broad-based, with all sectoral indices on the BSE closing in the green. The Realty sector led the charge, soaring by 5.81%, while Industrials and Capital Goods followed closely with gains of 3.76% and 3.67%, respectively. Auto stocks also benefited from the potential tariff relief, rising by 3.39%. Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services Ltd, emphasized that the positive global market cues were instrumental in driving the benchmark indices higher.
Vinod Nair, Head of Research at Geojit Investments Limited, added that the unexpected pause in reciprocal tariffs has further fueled the rally. The exemption on electronics goods has particularly boosted investor confidence, leading to a surge in auto stocks as well.
Investor Sentiment and Stock Performance
Investor sentiment has turned decidedly bullish, as evidenced by the trading activity on the BSE. Out of all traded stocks, 3,302 advanced, while only 785 declined, indicating a strong positive outlook among market participants. Among the top gainers in the Sensex, IndusInd Bank led with a remarkable 6.84% increase, followed by Tata Motors, which rose by 4.50%. Other notable performers included Larsen & Toubro, Axis Bank, and HDFC Bank.
In contrast, ITC and Hindustan Unilever were the only stocks to experience declines during this otherwise buoyant session. The overall market dynamics suggest a robust recovery, with investors optimistic about the potential for continued growth in the coming weeks.
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