Tariff reprieve ignites bulls! Sensex, Nifty jump over 1.5%, shrug off global jitters

US President announced 90-day pause in reciprocal tariffs on all countries

A relief rally swept across Indian benchmark indices, Sensex and Nifty, as they opened over 1.5 percent higher on the morning of April 11, following the announcement by US President of a 90-day pause in reciprocal tariffs on all countries, with the exception of China. The Indian markets shrugged off weak global cues, where sentiment remained subdued due to persistent concerns over trade uncertainty and fears of a global economic slowdown.

Around morning, the Sensex surged 1,139.47 points or 1.54 percent to reach 74,986.62, while the Nifty climbed 369.90 points or 1.65 percent to trade at 22,769.05. Market breadth was decisively positive, with around 2,263 stocks advancing, 253 declining, and 101 remaining unchanged.

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The broader end of the markets also saw significant gains. Nifty Midcap 100 and Nifty Smallcap 100 indices rose in the range of 1-2 percent this morning.

All sectors swam in the sea of green. Nifty Pharma, Nifty IT, and Nifty Auto indices were the top sectoral performers, rising over 2 percent each. Fear gauge, India VIX, meanwhile, cooled by 5 percent, showing anxiety was easing in the markets.

However, VK Vijayakumar, Chief Investment Strategist, Geojit Investments expects this gap up opening in the Nifty this morning to sustain beyond a point given the elevated uncertainty in global markets.

"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. Investors have to be cautious and should prioritise safety over returns. Safety now is in fairly valued largecaps," he noted.

Technically, the tariff postponement can drive Nifty to 23,100-23,300 band, while support is placed around 22,400, said Devarsh Vakil, Head of Prime Research, HDFC Securities.