Indian stock market opens higher as US delays tariff hikes on Canada, Mexico

Mumbai:  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.

At 9.32 a.m., the Sensex gained over 443 points or 0.58 per cent at 77,630.71 and the Nifty went up 130.25 points or 0.56 per cent at 23,491.30.

On NSE, eleven sectors advanced and one declined out of 12. The Nifty FMCG was the worst performing sector during open, while the NSE Nifty Metal was the best performing sector.

Power Grid Corporation, ITC, Hindustan Unilever and Asian Paints weighed on the Nifty 50 index. Infosys, ICICI Bank, Mahindra and Mahindra and L&T added 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.

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.

Additional tariffs of 25 per cent on imports from Mexico and Canada were to go into effect from Tuesday over the flow of undocumented migrants and drugs into the US through their borders. A lower 10 per cent hike is coming in China, but there were no talks ahead of it.

On February 3, the foreign institutional investors (FIIs) remained net sellers for the 23rd session, as they offloaded equities worth Rs 3,958 crore, while domestic institutional investors (DIIs) bought equities worth Rs 2,708 crore on the same day.

INDIAVIX was positive yesterday up by 1.83 per cent and was trading at 14.3525.

—IANS