The key equity indices traded with significant gains in the morning trade, following gains in Asian markets. This came after the U.S. delay its planned tariffs on Canada and Mexico, which helped alleviate concerns about a potential global trade war. The Nifty traded above the 23,500 level. Oil & Gas shares advanced after declining for the previous two consecutive trading sessions.
At 11:30 IST, the barometer index, the S&P BSE Sensex, rallied 573.71 points or 0.74% to 77,755.65. The Nifty 50 index added 164.75 points or 0.71% to 23,525.50.
The broader market outperformed the headline indices. The S&P BSE Mid-Cap index rose 0.81% and the S&P BSE Small-Cap index added 0.56%.
The market breadth was strong. On the BSE, 2,292 shares rose and 1,325 shares fell. A total of 183 shares were unchanged.
Buzzing Index:
The Nifty Oil & Gas index rose 1.49% to 10,358.30. The index shed 0.76% in the past two consecutive trading sessions.
Aegis Logistics (up 4.98%), Castrol India (up 4.8%), Oil & Natural Gas Corpn (up 2.29%), Indian Oil Corporation (up 2.28%), and Oil India (up 1.95%), Bharat Petroleum Corporation (up 1.86%), GAIL (India) (up 1.81%), Hindustan Petroleum Corporation (up 1.63%), Reliance Industries (up 0.92%), and Adani Total Gas (up 0.81%) added.
On the other hand, Indraprastha Gas (down 0.88%) and Gujarat Gas (down 0.13%) edged lower.
Stocks in Spotlight:
Power Grid Corporation of India shed 0.55%. The company's consolidated net profit fell 4.1% to Rs 3,861.63 crore in Q3 FY25 as against Rs 4,028.25 crore posted in Q3 FY24. Revenue from operations declined 2.7% YoY to Rs 11,233.03 crore recorded in the quarter ended 31 December 2024.
Garden Reach Shipbuilders & Engineers (GRSE) fell 0.33%. The company's net profit climbed 11.26% to Rs 98.19 crore on a 37.69% rise in revenue from operations to Rs 1,271 crore in Q3 FY25 over Q3 FY24.
Premier Energies tumbled 3.57%. The company's consolidated net profit surged to Rs 255.22 crore in Q3 FY25, up 490.51% from Rs 43.22 crore posted in the same quarter last year. Revenue from operations increased 140.47% year on year (YoY) to Rs 1,713.32 crore in the quarter ended 31 December 2024.
Global Markets:
Asian markets rose on Tuesday after U.S. President Donald Trump paused tariffs on Mexico for a month. Canada also confirmed that Trump had put proposed tariffs on its exports on hold.
Administration's warning that tariffs on China could increase if a trade deal addressing trade imbalances and fentanyl trafficking is not reached.
Uncertainty surrounding trade policies remains a key concern for investors, particularly given the expressed intent to impose additional tariffs, including a proposed 10% universal tariff.
The Canadian Prime Minister stated on Monday that the U.S. had agreed to a 30-day delay on planned tariffs following a meeting between the two leaders. This announcement came shortly after a similar 30-day delay on tariffs against Mexico was announced after a call between the U.S. and Mexican leaders. However, tariffs on China are still scheduled to take effect on Tuesday. China has expressed strong opposition to these tariffs and vowed to retaliate.
Over the weekend, tariffs were announced: 25% on Canada and Mexico, and 10% on China (with a reduced 10% tariff on Canadian oil).
U.S. stock indices experienced sharp declines on Monday following the tariff announcements but recovered from their session lows after the tariff delays were announced. The S&P 500 closed down 0.8%, the NASDAQ Composite fell 1.2%, and the Dow Jones Industrial Average decreased by 0.3%.
In addition to earnings reports, this week's focus is on the January nonfarm payrolls data, which is due on Friday and is expected to influence interest rate expectations.
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