The Indian stock market opened on a positive note on Tuesday, breaking a two-day losing streak, after the United States announced a one-month delay in its planned tariff hikes on Canada and Mexico.
At 9:32 a.m., the BSE Sensex rose by over 443 points, or 0.58 percent, reaching 77,630.71, while the NSE Nifty 50 gained 130.25 points, or 0.56 percent, to trade at 23,491.30.
Market sentiment improved after a sharp global sell-off in equities the previous day. Analysts attributed the rebound to the decision by US President Donald Trump to temporarily freeze the tariffs and initiate negotiations, interpreting it as part of his broader trade strategy. Over the weekend, Trump had imposed 25 percent duties on Canada and Mexico and a 10 percent levy on China, citing these measures as necessary to curb migration and fentanyl trafficking into the US.
The impact was visible across sectors, with eleven out of twelve NSE indices trading higher. The Nifty Metal index led the gains, while the Nifty FMCG index was the weakest performer at market open. Shares of Infosys, ICICI Bank, Mahindra & Mahindra, and Larsen & Toubro provided support to the Nifty 50, whereas Power Grid Corporation, ITC, Hindustan Unilever, and Asian Paints dragged the index down.
Meanwhile, the Indian rupee hit a record low on Monday, weakening beyond ₹87 per US dollar for the first time. The depreciation came amid concerns over the new tariff measures and their potential impact on global trade flows.
Foreign institutional investors (FIIs) continued their selling spree for the 23rd consecutive session on February 3, offloading equities worth ₹3,958 crore. On the other hand, domestic institutional investors (DIIs) remained net buyers, purchasing equities worth ₹2,708 crore on the same day.
Volatility in the market remained evident, with the India VIX rising by 1.83 percent to trade at 14.3525 on Monday.
-IANS
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