Tue Feb 04 12:32:15 UTC 2025: ## Indian Rupee Recovers, Stock Markets Surge on Trump’s Tariff Pause

**Mumbai, February 4, 2025** – Indian stock markets experienced a significant surge today, fueled by positive global sentiment following former US President Donald Trump’s announcement of a temporary pause on tariffs against Mexico and Canada. The Indian rupee also strengthened against the US dollar, recovering from its recent all-time low.

The Nifty 50 index opened at 23,509.90, up 148.85 points (0.64%), while the BSE Sensex gained 500.86 points (0.65%), reaching 77,687.60 at the opening bell. By the close of trading, the Sensex had climbed 786.65 points, and the Nifty 50 had advanced 231.10 points, reflecting broad-based market strength. Trading volume was high, with 4,033 stocks traded on the BSE, 2,456 advancing, 1,415 declining, and 162 remaining unchanged. A notable 61 stocks hit 52-week highs, while 81 reached 52-week lows.

The rupee’s recovery was equally noteworthy. It gained 13 paise against the US dollar in early trade, reaching 86.98, before settling at 87.08 (provisional) at the close. Forex traders attributed this strengthening to the retreat of the US dollar index after Trump’s tariff announcement.

The positive market sentiment was further bolstered by several strong Q3 earnings reports. Notable performers included Premier Energies, with a net profit of ₹255.2 crore, and Bharat Bijlee, whose shares soared 19.24% on the NSE after reporting a significant profit increase. However, not all companies reported positive results; some, like Asian Paints and Tata Chemicals, experienced profit declines.

The Union Budget 2025-26, which focused on boosting consumption and investment, also continued to impact market sentiment. Fitch Ratings affirmed its positive outlook on India’s sovereign rating, highlighting the government’s commitment to gradual deficit reduction. The budget’s emphasis on infrastructure development, particularly a record ₹2.52 lakh crore capital outlay for railways, also contributed to the positive market mood.

Further contributing to the positive day, Welspun New Energy signed a ₹13,500 crore MoU with the Odisha government for renewable energy projects. In the technology sector, Tata Communications and CoRover.ai announced a collaboration to develop sovereign AI solutions for Indian enterprises.

While the overall market trend was positive, several individual stocks experienced declines. This highlights the continued need for careful stock selection and risk management despite the overall market strength. Analysts are advising caution, urging investors to be mindful of potential volatility. The upcoming Reserve Bank of India (RBI) meeting, scheduled for February 4-7, is expected to be another key market driver.

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