The domestic equity benchmarks soared on Tuesday, buoyed by the U.S. decision to postpone its planned tariffs on Canada and Mexico. The move offered a temporary reprieve from escalating trade tensions, lifting investor sentiment and fueling optimism across global markets.
The benchmark Nifty closed above the 23,700 mark, reflecting broad-based buying interest. Energy and banking stocks led the rally, while FMCG shares witnessed selling pressure. Analysts noted that the tariff delay was seen as a constructive step in easing trade-related uncertainties, contributing to the day's positive momentum.
With the tariff concerns temporarily sidelined, market participants are now turning their attention to the Reserve Bank of India's monetary policy decision, scheduled for February 7. Investors will be closely watching the central bank's stance on interest rates and inflation, which could further influence market direction in the coming sessions.
The S&P BSE Sensex soared 1,397.07 points or 1.81% to 78,583.81. The Nifty 50 index rallied 378.20 points or 1.62% to 23,739.25.
Larsen & Tourbo (up 4.76%), Reliance Industries (up 3.28%) and HDFC Bank (up 2.51%) boosted the indices.
In the broader market, the S&P BSE Mid-Cap index rose 1.35% and the S&P BSE Small-Cap index added 1.20%.
The market breadth was strong. On the BSE, 2509 shares rose and 1410 shares fell. A total of 154 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 2.33% to 14.02.
Numbers to Track:
The yield on India's 10-year benchmark federal paper grew 1.71% to 6.784 as compared with the previous close of 6.778.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 87.075 compared with its close of 87.11 during the previous trading session.
MCX Gold futures for 4 April 2025 settlement fell 0.36% to Rs 82,982.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.15% to 108.57.
The United States 10-year bond yield rose 0.68% to 4.574.
In the commodities market, Brent crude for April 2025 settlement declined 81 cents or 1.07% to $75.15 a barrel.
Global Markets:
The US Dow Jones index futures were currently down by 92 points, signaling a weak opening for US equities later today.
Most shares in Europe and Asia advanced on Tuesday as investors continued to monitor developments in U.S. trade policy under newly inaugurated President Donald Trump.
Trump paused tariffs on Mexico for a month, while Canada confirmed that he had also put proposed tariffs on its exports on hold. Meanwhile, the administration warned 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 payroll data, which is due on Friday and is expected to influence interest rate expectations.
New Listing:
Shares of Dr. Agarwals Health Care were at Rs 401.55 on the BSE, a discount of 0.11% as compared with the issue price of Rs 402.
The scrip was listed at Rs 396.90, a discount of 1.27% to the issue price. The stock has hit a high of 412.75 and a low of 370.10. On the BSE, 12.35 lakh shares of the company were traded in the counter
Stocks in Spotlight:
Asian Paints rallied 2.69% after the company's consolidated net profit surged 59.86% to Rs 1,110.48 crore on 6.47% rise in revenue from operations to Rs 8,521.51 crore in Q3 FY25 over Q2 FY25.
Adani Ports and Special Economic Zone added 3.83% after the firm delivered the highest ever monthly cargo volume of 39.9 MMT in January 2025, higher by 13% on a year-on-year (YoY) basis.
Bharat Bijlee surged 19% after the company's net profit jumped 36.81% to Rs 40.62 crore on 21.24% rise in revenue from operations to Rs 513.75 crore in Q3 FY25 over Q3 FY24.
Godrej Properties rose 3.08% after its consolidated net profit surged 161% to Rs 163 crore while total income jumped 133% to Rs 1,222 crore in Q3 December 2024 (Q3 FY25) over Q3 December 2023 (Q3 FY24). Profit before tax surged 133% year-on-year (YoY) to Rs 220 crore in Q3 FY25. Meanwhile, the company has set a booking value target of Rs 27,000 crore for FY25. In the nine-month period ended December 2024 (9M FY25), the firm achieved bookings of Rs 19,281 crore, representing 71% of their target.
Poly Medicure jumped 5.85% after its consolidated net profit grew 31.08% to Rs 85.23 crore on 24.92% rise in revenue from operations to Rs 424.21 crore in Q3 FY25 over Q3 FY24.
Gland Pharma fell 2.64%. The company's consolidated net profit increased 6.67% to Rs 204.70 crore despite a 10.42% decline in revenue from operations to Rs 1,384.1 crore in Q3 FY25 over Q3 FY25.
Castrol India jumped 6.40% after the company reported a 12.2% rise in net profit to Rs 271.39 crore on a 7.1% increase in net sales to Rs 1353.89 crore in Q3 FY25 as compared with Q3 FY24.
Shalby slipped 2.73% after the company reported a consolidated net loss of Rs 1.81 crore for Q3 FY25, compared to a net profit of Rs 19.07 crore posted in Q3 FY24. Revenue from operations jumped 27.6% YoY to Rs 275.63 crore in the quarter ended 31 December 2024.
NLC India rallied 7.43% after the company's consolidated net profit surged 166.79% to Rs 668.09 crore on 39.41% rise in revenue from operations to Rs 4,411.41 crore in Q3 FY25 over Q3 FY24.
Doms Industries advanced 3.09% after the company reported a 35.9% surge in consolidated net profit to Rs 50.73 crore in Q3 FY25 as against 37.34 crore posted in Q3 FY24. Revenue from operations jumped 34.8% YoY to Rs 501.11 crore in the quarter ended 31 December 2024.
Garden Reach Shipbuilders & Engineers (GRSE) added 0.82%. 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. Meanwhile, the board has declared an interim dividend of Rs 8.95 per share, as on the record date, i.e., 7 February 2025.
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