Business

IIE DIGITAL DESK :Indian equity markets witnessed a sharp surge today, with both Sensex and Nifty closing over 1% higher, after global investors welcomed the United States’ decision to temporarily pause additional tariffs under former President Donald Trump’s earlier trade policy framework. The 90-day suspension of tariff enforcement has eased immediate fears of a global trade disruption, triggering a wave of optimism across Asian and European markets, including India.

The BSE Sensex soared by 1.81%, gaining more than 1,390 points to close at 78,583.81. The NSE Nifty also showed strong momentum, ending the day at 23,739.25, up 1.62%. Banking, oil and gas, and healthcare sectors led the rally, with the Nifty Bank index crossing the 50,000 mark, supported by renewed foreign institutional investor (FII) interest.

This sharp upturn comes amid a global sigh of relief after the U.S. paused its plans to reimpose steep tariffs on key imports from trade partners including Mexico and Canada. The tariff threat had loomed large over several economies and sectors, prompting concerns of another round of supply chain disruptions. With this temporary freeze, investor sentiment has turned bullish, boosting equity markets and currency outlooks in emerging economies.

Market analysts believe the pause on tariffs is a strategic move from Washington to create room for renegotiations. While the 90-day period provides short-term relief, they warn that the situation remains fluid, and any signs of policy reversal could again jolt markets.

India, which is sensitive to global trade shifts, is likely to benefit in the near term from revived risk appetite, increased foreign inflows, and improved sectoral performance across large-cap stocks.