Markets surge in early trade as US suspends additional 26% tariff on India till July 9

New Delhi: Benchmark equity indices surged in early trade on Friday after the US announced suspension of additional tariffs on India for 90 days until July 9 this year.

The 30-share BSE benchmark Sensex jumped 1,210.68 points to 75,057.83 in early trade. The NSE Nifty surged 388.35 points to 22,787.50.

The US has announced suspension of additional tariffs on India for 90 days until July 9 this year, according to the White House executive orders.

On April 2, US President Donald Trump slapped universal duties on about 60 countries exporting goods to America and additional steep levies on countries like India, potentially impacting sales of products from shrimp to steel in the world's biggest economy.

From the Sensex firms, Tata Motors, Sun Pharma, Tata Steel, HCL Tech, Tech Mahindra, Bajaj Finserv, Adani Ports and Reliance Industries were among the biggest gainers.

Asian Paints and Nestle were the only laggards.

In Asian markets, Tokyo's Nikkei 225 index and South Korea's Kospi were trading lower while Shanghai SSE Composite index and Hong Kong's Hang Seng quoted marginally higher. Tokyo's Nikkei 225 index dropped 4 per cent.

US markets ended significantly lower on Thursday a day after a sharp rally. The Nasdaq composite tanked 4.31 per cent, S&P 500 slumped 3.46 per cent and Dow Jones Industrial Average dropped 2.50 per cent.

"While intra-day volatility is expected to persist, one positive factor for India is that higher US tariffs on China may boost Indian exports to the US. Additionally, China's retaliation could trigger a shift in FIIs from China to India," Vikas Jain, Head of Research at Reliance Securities, said.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,358.02 crore on Wednesday.

"There is no room for a sustained rally in the market in the present uncertain context. But investors can take relief from the fact that Indian macros are good and we are one of the least impacted countries in this trade war," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

Global oil benchmark Brent crude declined 0.36 per cent to USD 63.10 a barrel.

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