Indian Stock Market Opens Higher as US Postpones Tariff Hikes on Canada and Mexico

The Sensex surged over 443 points or 0.58 per cent to 77,630.71 at 9.32 a.m., and the Nifty rose 130.25 points or 0.56 per cent to 23,491.30.

The NSE Nifty 50 and BSE Sensex snapped two-day fall on Tuesday after the US delayed tariff hikes on Canada and Mexico by a month.

The Sensex surged over 443 points or 0.58 per cent to 77,630.71 at 9.32 a.m., and the Nifty rose 130.25 points or 0.56 per cent to 23,491.30.

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On NSE, eleven sectors advance and one declines out of 12. During open, Nifty FMCG was the worst performing sector. NSE Nifty Metal came out as the best performing sector.
Power Grid Corporation, ITC, Hindustan Unilever, and Asian Paints weighed the Nifty 50 index. Infosys, ICICI Bank, Mahindra and Mahindra and L&T add to the Nifty 50 index.

According to market experts, after the global sell off in equity markets yesterday, there are positive signals as the decision taken by the US President Donald Trump to temporarily freeze the tariffs on Mexico and Canada and start negotiations is a clear indication of Trump's strategy.

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Vikram Kasat, Head-Advisory, PL Capital-Prabhudas Lilladher said that over the weekend, Trump followed through on his earlier threats, applying 25 per cent duties on Canada and Mexico, and a 10 per cent levy on China, citing these measures as necessary to curb migration and fentanyl flow into the U.S. The Indian rupee hit a record low, weakening beyond Rs 87 per US dollar for the first time on Monday.

Further tariffs of 25 per cent on imports from Mexico and Canada will come into effect starting Tuesday due to the flow of undocumented immigrants and drugs into the US through their borders. A lesser 10 percent increase is coming in China, but there was no discussion ahead of that one.

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On February 3, foreign institutional investors continued to be the net sellers at the 23rd session after selling equities worth Rs 3,958 crore, when domestic institutional investors bought equities worth Rs 2,708 crore on that day.

Yesterday, INDIAVIX came positive by 1.83 per cent, trading at 14.3525.

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