Indian stocks recover from Tuesday's bloodbath ahead of Trump reciprocal tariffs announcement
New Delhi: Indian stock indices recovered considerably on Wednesday after experiencing a slump in the previous session.
Sensex closed at 76,617.44 points, up 592.93 points or up 0.78 per cent, Nifty closed at 23,332.35 points, up 166.65 points or 0.72 per cent, respectively. All the sectoral indices were in the green today, with Nifty realty rising the most at 3.61 per cent, data showed.
On Tuesday, Sensex slumped about 1,400 points in a stock market bloodbath.
Now, all eyes are on the Trump administration's reciprocal tariff plans set to be announced in the early hours of Thursday. Those announcements will come into effect immediately.
Trump administration intends to implement reciprocal tariffs on trading partners as part of the "Fair and Reciprocal Plan".
Experts say that US President Donald Trump's statement that India was planning to drop its tariffs on American goods, substantially supported the markets on Wednesday.
Perhaps Trump's comments were seen by investors as a hint that the US will go soft on India as both countries are negotiating a bilateral trade pact. Faced with Trump's tariffs, some countries have imposed counter-tariffs on US goods, but India has stayed away from any such move.
"Despite mixed global cues surrounding the impending US tariffs, the domestic market experienced steady gains. This optimism was largely driven by expectations that the tariffs would have a minimal impact on the domestic economy, given the positive progress in India-US trade negotiations," said Vinod Nair, Head of Research, Geojit Investments Limited.
Nair added that sentiment was further reinforced by India's manufacturing PMI for March, which reached an eight-month high, hinting at a recovery in Q4FY25 corporate earnings.
Since assuming office for his second term, President Trump has reiterated his stance on tariff reciprocity, emphasising that the United States will match tariffs imposed by other countries, including India, to ensure fair trade.
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