SENSEX SURGES OVER 1,600 PTS; AUTO SHARES RALLY

The key equity barometers continued to trade with major gains in mid-morning trade, buoyed by positive global cues following U.S. President Donald Trump�s announcement of tariff exemptions on electronic goods. The Nifty hovered above the 23,300 level. Auto shares extended gains for the fourth consecutive trading session.

At 11:28 IST, the barometer index, the S&P BSE Sensex, surged 1,594.81 points or 2.12% to 76,752.07. The Nifty 50 index jumped 482.10 points or 2.11% to 23,312.15.

In the broader market, the S&P BSE Mid-Cap index advanced 2.04% and the S&P BSE Small-Cap index rallied 2.61%.

The market breadth was strong. On the BSE, 3,173 shares rose and 659 shares fell. A total of 220 shares were unchanged.

Buzzing Index:

The Nifty Auto index gained 3.32% to 21,230.95. The index surged 7.14% in four consecutive trading sessions.

Samvardhana Motherson International (up 7.32%), Bharat Forge (up 5.08%), Tata Motors (up 4.5%), Balkrishna Industries (up 3.97%), Mahindra & Mahindra (up 3.9%), TVS Motor Company (up 3.29%), Bajaj Auto (up 2.99%), Tube Investments of India (up 2.94%), Ashok Leyland (up 2.59%) and Maruti Suzuki India (up 2.24%) advanced.

Stocks in Spotlight:

Transrail Lighting soared 8.51% after the company announced that it had secured a new order worth Rs 1,085 crore in the domestic market.

Insolation Energy added 3.78% after its wholly owned subsidiary, Insolation Green Energy, secured a significant sale order worth Rs 36.01 crore from Nexgen Energies for the supply of Mono PERC solar modules.

Premier Energies added 2.86% after the company announced that it has entered into a strategic technology partnership with RENA Technologies GmbH, aimed at advancing solar cell innovation.

Global Markets:

Most Asian equity indices advanced after U.S. President Donald Trump announced a temporary exemption for smartphones and other electronics from the list of Chinese imports facing steep tariffs. However, investor sentiment remained cautious, as the ongoing trade negotiations between Washington and Beijing continue to generate economic uncertainty.

On Monday, Trump suggested the possibility of extending tariff exemptions to automobiles as well. Nevertheless, the frequent shifts in the administration`s trade stance have created uncertainty around U.S. economic policy, which has dampened investor risk appetite.

U.S. equities recorded two consecutive sessions of gains, supported by the partial tariff relief and renewed bargain buying following weeks of losses. The S&P 500 rose 0.8%, the NASDAQ Composite added 0.6%, and the Dow Jones Industrial Average also advanced 0.8%.

Despite the short-term relief, recent comments from the President indicated that the exemptions for electronics may be temporary. Trump hinted at the potential introduction of separate tariffs targeting the electronics sector, contributing to increased uncertainty about the U.S. economic outlook. The dollar declined to a three-year low amid the lack of policy clarity, and U.S. Treasury yields climbed as investors reduced exposure to government bonds.

Markets also remained wary of the broader implications of the escalating trade conflict. Last week, the U.S. imposed cumulative tariffs of 145% on Chinese imports, prompting retaliatory measures from Beijing, which introduced tariffs amounting to 125% on U.S. goods.

In addition to trade developments, U.S. markets found some support from stronger-than-expected first-quarter earnings from major banks. These results suggested a degree of resilience in corporate performance despite growing macroeconomic headwinds.

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