Benchmark indices ended sharply higher on Friday, with the Nifty rising 1.92% (429 pts) to 22,828 and the Sensex jumping 1.77% (1,310 pts) to 75,157. The rally was fueled by improved global sentiment and easing trade worries. Here are top 5 factors behind today’s rally:
1. US Suspends Tariffs on India
The US postponed additional 26% tariffs on India and 74 other countries until July 9, easing trade concerns. India, which faced steep levies on exports like shrimp and steel, gained relief, boosting market sentiment.
2. Weakening Dollar Lifts Markets
The US dollar index dropped below 100 for the first time since July 2023, improving investor appetite for emerging markets. The Indian rupee strengthened by 63 paise to 86.05, supported by strong equities and foreign inflows.
3. Sector-Wide Rally
Nifty Metal surged 4% on favorable currency moves. Pharma gained 2.4%, while Auto, Consumer Durables, Oil & Gas, and Financials rose 1–3%. India VIX dropped 6.17% to 20.11, signaling lower volatility.
4. Crude Oil Declines
Brent crude fell to $63.3/barrel, while WTI dropped to $60.09, easing inflation concerns for India, a major oil importer.
5. China Hits Back with Tariffs
China raised tariffs on US goods to 125%, dismissing further US levies as meaningless and blaming the US for global trade chaos.
