Mumbai:
The Indian stock markets opened strongly on Friday, after a strong meeting in the American markets on Wednesday.
The increase came after US President Donald Trump had announced a 90 -day delay of mutual rates for 75 countries, including India, amid an escalating trade war with China.
The BSE Sensex jumped 1,061.26 points to open on 74,941,53, while the NSE Nifty climbed 354.90 points and the day started at 22,754.05. The sharp increase in Indian shares reflected the improved investor sentiment after the temporary relaxation of global trade tensions.
Ajay Bagga, banking and markt expert, explained: “Indian markets will open with a gap largely due to the Wednesday American market rise after the Trump Mutual rates postponed for 90 days. However, Thursday, the American markets in the American markets in the Wednesday afternoon 400 points, Si Positive, will be reduced.”
He added: “With a Monday again an Indian market holiday, positions will be reduced this afternoon. So an opening that could end with a flat Indian market. The American dollar index that drops to 100 levels (DXY) is ultimately positive for EM streams, but sentiment is fragile.
The midweek rally on the American markets came after President Trump has announced an immediate increase in rates on Chinese goods to 125 percent, in response to China’s decision to increase his rates on American goods from 34 percent to 84 percent, radically April 10.
At the same time, Trump announced a 90-day break about the imposition of higher rates on 75 countries involved in trade negotiations with the US, including India.
However, optimism was short -lived. American markets reversed on Thursday, with the industrial average of Dow Jones fell 1,014 points and the Nasdaq fell by 4.5 percent. The constant uncertainty about global trade policy weighed heavily in the sentiment of investors.
In the midst of rising market volatility, gold prices in India rose to a record high of RS91,500 per 10 grams, while investors turned to safe port activa. The Japanese Yen and Swiss Franc also saw an increased influx.
The US Dollar Index (DXY) fell to 100, which could ultimately benefit emerging markets, but analysts warned that the sentiment remains fragile.
In the field of Business Front, TATA Consultancy Services (TCS) reported income under market expectations, so that various brokers have reduced their target prices for the IT giant.
As an addition to the worldwide concerns, an official of the White House confirmed that the average rate percentage of China would rise to 145 percent, which further intensifies the trade stresses.
With the uncertainty that great popping up, experts advise investors to be careful despite the short -term rally in shares.
(Except for the headline, this story was not edited by NDTV staff and has been published from a syndicated feed.)
