Indian stock markets opened sharply higher on Friday, buoyed by a strong rally in the US markets earlier in the week. The surge came after US President Donald Trump announced a 90-day postponement of reciprocal tariffs for 75 countries, including India, amid rising tensions in the US-China trade war.
The BSE Sensex jumped 1,061.26 points to open at 74,941.53, while the NSE Nifty surged 354.90 points, starting the day at 22,754.05. The rally reflected a brief improvement in investor sentiment following the temporary easing of global trade pressures.
Ajay Bagga, banking and market expert, explained:
“Indian markets will open with a gap up largely due to the Wednesday US market surge following the Trump reciprocal tariffs postponement for 90 days. However, the Thursday fall in the US markets led to a fall in the Gift Nifty as well. Hence, versus a 700 plus rally on Wednesday, on Friday morning, the Gift Nifty premium to the domestic Nifty future close of Wednesday afternoon is down to 400 points, Si positive open but momentum is reduced.”
He added:
“With Monday again being an Indian market holiday, positions will be reduced this afternoon. So a gap-up open could end with a flattish Indian market. The US dollar index falling to 100 levels (DXY) is positive for EM flows eventually, but the sentiment is fragile and frayed. So, caution is advised. Gold has seen sustained inflows as safe haven buying has gone into gold, Japanese yen and Swiss Franc.”
The midweek rally in US markets was triggered by Trump’s announcement of a 125% tariff hike on Chinese goods in retaliation for China raising its tariffs on US products from 34% to 84%, effective April 10. At the same time, he paused tariff hikes for 75 trade partners, offering temporary relief.
However, Thursday saw a reversal in the US markets. The Dow Jones Industrial Average dropped 1,014 points, while the Nasdaq fell by 4.5%, dragging down global sentiment once again.
Back home, gold prices in India hit an all-time high of ₹91,500 per 10 grams, as investors turned to safe-haven assets. The Japanese yen and Swiss franc also experienced increased inflows amid market volatility. The US Dollar Index (DXY) dropped to 100, which may benefit emerging markets like India over time, though analysts warn that sentiment remains fragile.
Meanwhile, on the corporate front, Tata Consultancy Services (TCS) reported earnings below market expectations, prompting several brokerages to revise down their target prices for the IT major.
To add to the market jitters, a White House official confirmed that China’s average tariff rate would now rise to 145%, escalating the global trade standoff.
Despite Friday’s positive start, experts advise investors to proceed with caution, citing fragile sentiment, rising market volatility, and ongoing geopolitical risks.