Indian equity markets saw a massive rally on Tuesday, April 15, 2025, with both the Sensex and Nifty50 jumping sharply after U.S. President Donald Trump announced a significant relief on tariffs for electronics. The announcement sparked widespread buying across various sectors, pushing the Sensex up by 1,610 points, or 2.14%, to reach 76,767. Similarly, the Nifty50 climbed 493 points, or 2.16%, to 23,321 by mid-morning.
U.S. Tariff Exemption Drives Global Relief Rally
The surge in the Indian markets was largely driven by positive global cues. Over the weekend, the U.S. administration decided to exclude smartphones, computers, and other electronics from the proposed reciprocal tariffs, which had earlier raised concerns among investors. The decision sent ripples of relief through global equity markets, boosting investor sentiment across Asia, Europe, and the U.S.
Earlier this month, Trump had announced steep tariffs on all U.S. imports but later paused them for 90 days for several countries, excluding China. The exclusion of electronics from the tariffs was seen as a major win for tech companies, particularly in Asia, where electronics are a crucial export sector.
Key Stocks Driving the Surge
From the Sensex pack, several heavyweight stocks made significant gains in response to the tariff relief. Among the top performers were Tata Motors, Mahindra & Mahindra (M&M), and HDFC Bank, which saw substantial upticks in their share prices. These stocks were buoyed by the positive global outlook and the potential for stronger earnings in the wake of reduced tariff pressures.
Other sectors, including technology, automobiles, and financials, also saw a broad-based rally, further lifting the indices. The relief from the U.S. tariff decision helped alleviate concerns that had been weighing on market sentiment, particularly in the technology and automobile sectors, which are closely tied to global trade.
A Look Ahead: Will the Momentum Continue?
The rally in Indian equities came as a welcome relief after a period of volatility, driven by global trade tensions. However, analysts caution that the markets may face challenges in sustaining the momentum, especially given the uncertainties surrounding other geopolitical factors and the ongoing global economic challenges.
For now, the positive news from the U.S. has provided a strong catalyst for a market rebound. Investors are closely monitoring developments, including further actions on tariffs, corporate earnings reports, and economic data, which will be key to determining whether the bullish sentiment can be maintained in the near term.
