FX.co ★ Sensex Soars 1,397 Points; Nifty Ends Above 23,700

Indian equities experienced a significant surge on Tuesday, buoyed by U.S. President Donald Trump's announcement of a tariff postponement for Mexico and Canada, though China received no such exemption.

Following the institution of a 10 percent tariff on Chinese imports, China countered with its own tariff strategies and export limitations to safeguard its economic interests. This prompted a 2 percent dip in oil prices within European markets, helping to allay concerns regarding inflation and prospective interest rate adjustments.

Investor sentiment was further strengthened by generally positive reactions to the 2025 Budget and the anticipated rate reduction by the Reserve Bank of India (RBI). The RBI's Monetary Policy Committee is set to convene from February 5-7, with prevailing expectations of a 0.25 percent cut in the repo rate to 6.25 percent, alongside potential measures such as a Cash Reserve Ratio cut or notable bond acquisitions.

The S&P BSE Sensex advanced robustly by 1,397.07 points, or 1.81 percent, closing at 78,583.81. Similarly, the NSE Nifty index grew by 378.20 points, or 1.62 percent, concluding the session at 23,739.25. Additionally, the BSE mid-cap and small-cap indices rose by 1.3 percent and 1.1 percent, respectively.

Market breadth was positive, with 2,516 stocks appreciating on the BSE, 1,403 experiencing declines, and 154 remaining unchanged. Shriram Finance surged 5.7 percent, driven by expectations of heightened consumer spending and a burgeoning demand for consumer finance, in light of Union Finance Minister Nirmala Sitharaman's budget pronouncement to make incomes up to Rs. 12 lakh tax-free and to lower taxes across all income bands.

In the list of significant gainers, Adani Ports, IndusInd Bank, BEL, and Larsen & Toubro each appreciated by roughly 4 percent. Conversely, Trent, the retail division of Tata Group, witnessed a decline of 6.4 percent following the reentry of the Chinese brand Shein into the Indian market via Reliance Retail. ITC Hotels, which recently separated from ITC's core businesses, dropped by 4.2 percent.