US President Donald Trump’s assurance that no major tariff shocks would occur on April 2 helped calm global markets yesterday. Trump stated that there would be “sufficient flexibility” in tariff enforcement, which fuelled a rally in the US markets and carried positive sentiment into Asian trading this morning. Indian markets, which saw significant gains on Monday, are expected to continue the upward trend today.
However, Trump also issued a warning that countries importing crude oil from Venezuela would face a 25% tariff. This pushed crude oil prices to $73 per barrel.
According to reports from The Wall Street Journal and Bloomberg News, not all countries will face these tariffs. About 15 nations, including India and the European Union, are likely to be affected by the April 2 announcement. Countries such as China, Australia, Canada, Brazil, Japan, South Korea, Mexico, Russia, and Vietnam are also on the list.
A US delegation is in Delhi today to discuss a new trade agreement with India. The negotiations, expected to last four to five days, will focus on what sectors need policy revisions and to what extent.
In the derivatives market, Gift Nifty closed at 23,743 and climbed to 23,770 this morning, suggesting a positive opening for Indian equities. Meanwhile, European markets closed Monday with minor losses. Shares of German biotech firm Bayer fell by 7.5% following a California court order to pay $2.1 billion in damages to a couple affected by cancer allegedly caused by the weedkiller Roundup. Since acquiring Monsanto a year ago, Bayer’s stock has dropped over 40%.
Trump’s comment on tariff leniency helped propel the Dow Jones Industrial Average by nearly 600 points. Tech shares, led by a 12% jump in Tesla, lifted the Nasdaq index by 2.27%. The Dow closed at 42,583.30, up 597.97 points (1.42%), while the S&P 500 rose 100.01 points (1.76%) to close at 5,767.57. The Nasdaq Composite gained 404.54 points, ending at 18,188.60.
US futures this morning remained mostly flat.
Asia in the Green, China Starts Lower
Asian markets opened positively today, with indices rising in Japan, South Korea, and Australia. However, China’s markets opened slightly lower.
On Monday, Indian markets posted strong gains, with both equities and the rupee recovering all losses incurred in 2025 so far. Since 13 March, the Sensex and Nifty have each risen by 5.6%, while the Midcap 100 and Smallcap 100 indices surged by 9.1% and 9.8% respectively.
Expectations of tariff relaxation and strong foreign investor inflows have bolstered market sentiment. On Monday, foreign institutional investors (FIIs) invested ₹3,055.76 crore in the cash market, while domestic funds purchased shares worth ₹98.54 crore.
The Nifty ended Monday up by 307.95 points (1.32%) at 23,658.35, and the Sensex surged 1,078.87 points (1.40%) to 77,984.38. The Bank Nifty jumped 1,111.40 points (2.20%) to close at 51,704.95. The Midcap index rose by 1.30% to 52,524.05, and the Smallcap index increased by 1.10% to 16,363.70.
Banking, finance, IT, realty, and oil & gas stocks led the rally. Shares of Kotak Mahindra Bank and Federal Bank rose over 4%. Market breadth remained positive, with 2,458 stocks advancing against 1,689 declining on the BSE. On the NSE, 1,865 stocks rose while 1,082 declined.
Market sentiment is turning increasingly bullish. Technical analysts suggest that if the Nifty breaks 23,800, the index could target the 24,000–24,200 range. Support is expected at 23,500 and 23,430, while resistance may be seen near 23,770 and 23,870.
HCL Technologies has partnered with Western Union to modernise the company’s technology infrastructure and will set up a technology centre in Hyderabad.
Central Bank of India, Punjab & Sindh Bank, and UCO Bank have launched Qualified Institutional Placements (QIPs).
Garden Reach Shipbuilders has signed a contract to build two multipurpose vessels for a German company, having already delivered six similar ships in the past.
TTK Prestige chairman T.T. Jagannathan has stepped down from his roles, with vice-chairman T.T. Raghunathan taking over.
Britannia's factory operations in Jagadia, Gujarat, have been partially disrupted due to a workers' strike.
SBI Life Insurance has received an income tax notice worth ₹431 crore.
Gold prices fell due to profit-booking and a stronger dollar. Gold closed at $3,012.50 per ounce, having dipped near $3,000 earlier. The upcoming release of the US Personal Consumption Expenditure (PCE) index may offer short-term direction to gold prices. Early this morning, prices recovered slightly to $3,016.
In Kerala, gold prices dropped ₹120 on Monday to ₹65,720 per sovereign. Silver fell to $32.93 per ounce. The US Dollar Index rose to 104.26 on Monday and is trading slightly higher at 104.30 this morning.
The Indian rupee extended its gains for the ninth consecutive session, recovering all 2025 losses. The rupee strengthened by 33 paise to close at 85.64 per dollar. The Chinese yuan remains steady at 7.25 per dollar.
US treasury bond prices continued to fall on Monday, pushing yields higher. The yield on 10-year treasury notes ended at 4.33%, amid indications that the tariff conflict may be milder than previously expected.
Crude oil prices rebounded after slipping over the weekend. Trump's announcement of a 25% tariff on Venezuelan crude imports helped push prices up by 1.5%. This morning, Brent crude traded at $73.03 per barrel, WTI at $69.25, and UAE’s Murban crude at $74.28.
Cryptocurrencies also rallied. Bitcoin rose by 3% to reach $87,600, while Ethereum climbed 4.5% to around $2,085.
Sensex: 77,984.38 (+1.40%)
Nifty 50: 23,658.35 (+1.32%)
Bank Nifty: 51,704.95 (+2.20%)
Midcap 100: 52,524.05 (+1.30%)
Smallcap 100: 16,363.70 (+1.10%)
Dow Jones: 42,583.30 (+1.42%)
S&P 500: 5,767.57 (+1.76%)
Nasdaq: 18,188.60 (+2.27%)
US Dollar: ₹85.64 (–₹0.33)
Gold (Ounce): $3,012.50 (–$11.90)
Gold (Sovereign): ₹65,720 (–₹120)
Crude Oil (Brent): $73.03 (–$0.87)
