Sensex Surges 500 Points, Nifty Crosses 23,500 as Trump Delays Tariffs; IT, Banking Stocks Rally

The Indian stock market rebounded sharply on February 4, with the Sensex soaring over 500 points and the Nifty reclaiming the 23,500 mark. The rally was fueled by positive global cues after U.S. President Donald Trump postponed tariffs on Canada and Mexico for 30 days, easing investor concerns about an escalating trade war. IT and banking stocks led the gains, while broader market sentiment also improved.

Market Opens Strong on Positive Global Cues

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After two consecutive sessions of decline, Indian equities opened higher, tracking gains across Asian markets. The temporary halt in U.S. tariffs on Canada and Mexico provided relief, although investors remained cautious as tariffs on China were still set to take effect later in the day. The market is also keenly awaiting the Reserve Bank of India's (RBI) policy decision on February 7, which could influence further movements.

At 10:03 AM, the Sensex surged 656.51 points (0.85%) to 77,843.25, while the Nifty jumped 185.60 points (0.79%) to 23,546.65. The broader market also participated in the rally, with the BSE Midcap and Smallcap indices gaining nearly 1%. Market breadth was strong, with 1,943 stocks advancing against 430 declines.

IT and Banking Stocks Lead the Surge

Most sectoral indices traded in the green, with the Nifty IT and Nifty Bank indices leading the rally. The only laggard was Nifty FMCG, which around slipped 0.6%.

Among the top gainers on the Nifty 50 were Bharat Electronics, Hindalco, ONGC, Tata Motors, and Infosys, each rising 2-3%. On the other hand, Trent, Power Grid, HUL, Nestle, and Britannia saw losses of 1-3%.

While Trump's tariff delay brought temporary relief, market volatility remains high as fresh U.S. tariffs on Chinese imports are set to be implemented. Overnight, Wall Street saw a choppy session, initially slipping before recovering some losses after the announcement.

Domestically, investors are also concerned about weak earnings, slowing economic growth, and persistent foreign investor outflows. So far in February, foreign institutional investors (FIIs) have offloaded ₹5,285 crore worth of Indian equities, adding to market uncertainty.

Despite today's rebound, the Sensex and Nifty are still 10% below their all-time highs. The RBI's policy decision later this week will be a key factor in shaping market sentiment further.

In Conclusion

While the tariff delay has boosted market sentiment, uncertainty remains due to ongoing global trade tensions and domestic economic challenges. Investors will closely watch the RBI’s policy decision, as it could determine whether the market sustains its recovery or enters consolidation mode.