Market Rally in Mumbai

A significant easing of global tariff tensions on Tuesday sparked a remarkable investor sentiment uplift on Dalal Street, culminating in a 1,578 point (2.1%) surge in the Sensex, which closed at an impressive 76,735 points. This milestone marked the first major global market to fully recover its losses since April 2.

Global Tariff Developments

Following the initial announcement of new tariff rates by US President Donald Trump on April 2, global markets experienced turmoil. However, the recent suspension and scaling back of most tariffs have led to a resurgence in investor confidence, particularly in riskier markets like India.

Investor Movements

Foreign investors have been quick to return, with net buying in domestic stocks reaching Rs 6,066 crore on Tuesday, while domestic funds saw net selling at Rs 1,952 crore. The rally was further supported by a strengthening rupee and positive global cues.

Sector-Specific Gains

Notably, Tata Motors saw a 4.5% increase, buoyed by potential relief for the automobile sector from US tariffs. Banking stocks also enjoyed gains after leading banks cut deposit rates, a move expected to enhance net interest margins.