Aaj Ki Janta

In a surprising turn of events that brought a breath of relief to Indian investors, US President Donald Trump’s decision to pause a hefty 26% tariff on Indian imports has ignited optimism across Dalal Street. The Indian stock markets ended Friday on a strong note, with Sensex and Nifty closing in the green, buoyed by renewed investor confidence and broad-based buying.

The BSE Mid-cap and Small-cap indices also followed suit, trading in positive territory, indicating a widespread bullish sentiment across sectors. The news came as a welcome break for Indian markets amid global turbulence triggered by escalating trade tensions between the US and China.

Global Markets Rattled by US-China Trade War

While Indian indices celebrated, global markets painted a starkly different picture. Japan’s Nikkei 225 plunged 5.4%, closing at 32,744, amid fears of economic fallout from a full-blown US-China trade war.

The Nasdaq witnessed a sharp 4.6% decline on Thursday, as Wall Street reacted negatively to Trump’s aggressive tariff stance on Chinese imports. The US imposed a 145% tariff on China—a 125% hike on top of the existing 20% base—after Beijing failed to meet a deadline to remove its own retaliatory duties.

In response, China slapped 84% tariffs on US goods, sparking a tit-for-tat escalation that has rattled global investors and sparked fears of slowed global economic growth.

Trump Hits Pause — But Only for 90 Days

In a bid to ease market panic, Trump announced a 90-day suspension of new reciprocal tariffs on imports from most countries, excluding China. While this move gave emerging markets like India a temporary reprieve, analysts warn that volatility could return if trade tensions deepen further.

Gold Shines Bright Amid Uncertainty

In times of global uncertainty, gold continued its ascent. On Thursday, gold futures surged 3.2% to $3,177.50, recording their best single-day gain since April 9, 2020. The precious metal has now risen 4.7% this week alone, setting it up for its strongest week since late November 2024, as investors seek refuge from the stormy equity markets.

What to Watch Going Forward

With global volatility on the rise, markets will remain hypersensitive to further developments in the US-China trade saga, clarity on the duration of Trump’s tariff pause, and ongoing commodity movements, especially in safe-haven assets like gold. Indian investors, for now, are riding the relief rally—but caution remains key as global uncertainties loom large.