Nifty50, Sensex Surge 2% as US Suspends Tariffs, Dollar Weakens – Key Factors Driving the Rally

Nifty50, Sensex Jump 2% as US Suspends Tariffs, Dollar Weakens – Sector-Wide Rally

Benchmark indices Nifty50, Sensex surged sharply on Friday, driven by improved global sentiment after the US announced a 90-day suspension of additional 26% tariffs on India. The move eased concerns over trade disruptions, triggering a broad-based rally across sectors.

At 10:30 am, the BSE Sensex was up 1,542 points (2.09%) at 75,390, while the Nifty50 gained 487 points (2.18%) at 22,886. The market capitalisation of all BSE-listed companies surged by ₹6.97 lakh crore, reaching ₹400.79 lakh crore.

Key Factors Behind Today’s Market Rally

1. US Tariff Suspension Boosts Sentiment
   • The US postponed additional tariffs for 75 countries, including India, until July 9, providing temporary relief.
   • India had faced steep levies on shrimp, steel exports, but the suspension eased fears of immediate trade disruptions.
   • Dr. VK Vijayakumar, Geojit Financial Services, said, “Indian macros are strong, making us one of the least impacted in this trade war.”
2. Weakening Dollar Supports Indian Equities
   • The dollar index fell below 100 (first time since July 2023), boosting emerging markets like India.
   • A weaker dollar strengthens foreign inflows, easing pressure on the rupee, which surged 51 paise to 86.17/USD.
   • Metal, pharma stocks rallied as exporters benefit from a weaker dollar.
3. Broad-Based Rally Across Sectors
   • Nifty Metal (+3%), Nifty Pharma (+3%) led gains, while Auto, Healthcare, IT, Financial Services rose 1-2%.
   • India VIX (volatility index) dropped 4.6% to 20.44, signaling improved risk appetite.
4. Crude Oil Prices Decline, Easing Inflation Worries
   • Brent crude fell to $63.02/barrel\ast \ast ,\ast \ast WTIcrudedroppedto$59.71, supporting India’s import-dependent economy.
   • Lower oil prices reduce inflation risks, aiding market sentiment.

Conclusion: Will the Rally Sustain?

While the short-term rally is driven by global cues, tariff relief, and a weaker dollar, experts caution that sustained gains depend on domestic economic recovery, corporate earnings, and global stability.

For now, investors can cheer the strong rebound in Nifty50, Sensex, supported by positive global trends, sectoral gains, and easing trade tensions.

SEO Keywords: Nifty50, Sensex, US tariffs, India stock market, BSE, NSE, market rally, dollar index, rupee, crude oil prices, metal stocks, pharma stocks, trade war, Geojit Financial Services, India VIX, foreign inflows, emerging markets.

Hashtags: #Nifty50 #Sensex #StockMarket #USDollar #CrudeOil #TradeWar #Investing #MarketRally