Dalal Street kicked off Friday with a powerful rally, as benchmark indices surged sharply in morning trade following US President Donald Trump’s announcement of a temporary halt on most new tariffs for 90 days.
By 9:43 am, the BSE Sensex had spiked by 1,415.25 points, reaching 75,262.40, while the NSE Nifty50 advanced 465.90 points to 22,865.05.
The bullish sentiment wasn’t confined to large-cap stocks. Broader market indices, including small- and mid-cap segments, also posted strong gains amid reduced volatility and a revived appetite for risk.
Here are 3 major insights into Friday’s rally:
1. Tariff Pause Sparks Global Optimism
President Trump’s decision to suspend fresh tariffs—excluding those targeting China—brought relief to global markets. For India, which has remained somewhat shielded from the US-China trade tensions, the move is seen as a positive step.
However, analysts caution that the decision wasn’t purely strategic. “Bond markets didn’t respond with safe-haven buying—yields actually went up,” noted Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “This appears to be a forced move, driven by bond market pressure.”
Despite a dip in the dollar index and US 10-year bond yields settling around 4.46%, uncertainty over geopolitical tensions lingers.
2. Caution Amid Market Volatility
Despite the initial upswing, market experts are advising restraint.
“Volatility will remain a dominant factor,” said Anand James, Chief Market Strategist at Geojit. He highlighted that the Nifty must break past the 23,140 resistance level—or at least hold above 22,850—to maintain bullish momentum.
James warned that if the index slips below 22,350, weakness could return. Although a drop below 22,160 is less probable, intraday volatility is expected to continue due to mixed global signals and unresolved domestic developments.
3. Outlook: Stay Grounded, Stay Selective
While the rally has boosted short-term sentiment, analysts hesitate to call it the start of a sustained uptrend.
“There’s limited room for a prolonged rally in this current environment,” Vijayakumar cautioned. “Still, India’s strong macro fundamentals and relative insulation from global trade shocks offer reassurance.”
The key takeaway for retail investors: focus on quality stocks, especially large-cap names with strong fundamentals, and avoid chasing momentum trades. The current calm may not last long.