Indian Stock Markets Surge as Tensions Ease and Trade War Temporarily Calms
Indian stock indices surged due to de-escalated India-Pakistan tensions and a temporary easing of US-China trade tariffs. Key indices Sensex and Nifty closed significantly higher, driven by investor optimism and favorable domestic economic indicators. However, pharma stocks faced pressure due to cost-cutting moves in the US market.
- Country:
- India
The Indian stock markets witnessed a significant surge on Monday, buoyed by the promising news of a reduced military conflict between India and Pakistan, as the rival nations' armed forces reached a mutual understanding.
Adding to investor optimism, the US and China reached a temporary agreement to ease their trade war, deciding to suspend their previously announced reciprocal tariffs for an initial 90-day period. During this period, China agreed to 10 per cent tariffs on US goods, while the US imposed a 30 per cent tax on Chinese goods. This development supported a rally in Indian markets, with the Sensex closing at 82,429.90 points, up by 2,975.43 points or 3.74 per cent. The Nifty also showed strong gains, closing at 24,924.70 points, up by 916.70 points or 3.82 per cent.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, stated that the ceasefire between India and Pakistan has fueled the sharp rally in the markets, along with domestic factors like expectations of high GDP growth and earnings revival. However, stocks in the pharma sector felt pressure, as President Donald Trump prepared to sign an executive order aimed at reducing prescription drug prices in the US by up to 80 per cent. Despite this pressure, the Nifty pharma index showed resilience, closing 0.15 per cent higher compared to significant jumps in other sectors.
(With inputs from agencies.)
Google News