When domestic markets reopen after a holiday on Friday, equity indices are expected to open higher due to strong global indications following Trump’s decision to halt tariffs on all countries except China for 90 days. After ending Wednesday afternoon at 22,487, Gift Nifty Futures is up 810 points to 23,299.5.
Trump has not completely reversed his position on the country-specific tariffs. The White House announced it will continue to impose a blanket 10% levy on nearly all U.S. imports. Additionally, the declaration seems to have little bearing on current steel, aluminum, and car levies.
In a stunning turnaround, Trump declared a 90-day hold on many of his new tariffs on Wednesday, after days of market routs that stunned U.S. Treasury bonds and the currency and erased trillions of dollars from global markets. Additionally, he put pressure on China by announcing that he will increase the tariff on Chinese goods from the 104% level that went into force on Wednesday to 125%.
The Sensex and Nifty ended Wednesday’s previous session lower due to global weakness, even though the Reserve Bank of India lowered policy rates for the second consecutive day.
Asian markets also saw a surge, with the Shanghai Composite rising more than 1%, Hong Kong’s Hang Seng up 3%, South Korea’s Kospi up 6%, and Japan’s Nikkei 225 up 8%.
A probable gap-up start on Friday was indicated by the Gift Nifty, an early indication for domestic equities, which was trading more than 700 points higher on Thursday than the Nifty Futures closing of 22,502 on Wednesday.
While FTSE futures climbed 5.4%, European futures also saw significant gains, with EUROSTOXX 50 and DAX futures rising over 8% each.
