New Delhi: Indian stock markets closed higher on Wednesday, buoyed by optimism that the ongoing US-China tariff battle may not adversely impact India. The rally came despite growing global concerns over protectionist trade measures initiated by the Trump administration.
The BSE Sensex ended the day at 77,044.29, climbing 309.40 points or 0.40%, while the NSE Nifty settled at 23,437.20, up by 108.65 points or 0.47%.
According to Bajaj Broking, “Benchmark indices extended their winning streak for the third straight session, with strong buying momentum in the final hour pushing the market near the day’s high.”
Globally, equity markets are experiencing volatility amid escalating tariff tensions, as the US hiked duties on Chinese goods to as much as 245%. However, analysts believe India could benefit from this geopolitical turbulence.
Vinod Nair, Head of Research at Geojit Financial Services, told the media, “Despite global uncertainty, the Indian market reflected cautious optimism, expecting that the trade tensions between the US and China might favor India. Additionally, CPI inflation hitting a five-year low in March strengthens the case for future rate cuts.”
India’s retail inflation fell to a 67-month low last month, which further supported investor sentiment and contributed to the positive market movement.
The Trump administration has temporarily paused reciprocal tariffs on several countries, including India, for a period of 90 days. This move helped calm global markets. However, the US continues to enforce a steep 125% tariff on Chinese goods, recently increasing it to 245%.
Initially, the tariff announcements triggered global equity sell-offs, including in India, amid fears of a trade war and potential economic slowdown. Since his re-election in January, President Donald Trump has reaffirmed his commitment to tariff parity, aiming to match the import duties imposed by other nations, including India, in pursuit of what he calls “fair trade.”