Stock Market Today: Sensex Rises Over 500 Points, Nifty Above 23,500 Amid Volatility

Stock Market Today: Among sectoral indices, all but the Nifty FMCG, which fell 0.6 per cent, saw gains. IT and banking stocks were the top performers on the Nifty on Tuesday

After two consecutive days of decline, Indian benchmark indices, Sensex and Nifty opened higher on Tuesday, driven by gains in Asian markets. This followed news that the US had temporarily suspended planned tariffs on Canada and Mexico, easing concerns of a full-scale trade war. However, with tariffs on China still on track, volatility remains a major concern. Investors are now focused on the RBI's upcoming policy decision on February 7.

At 10 am, the Sensex gained 701.61 points, or 0.91 per cent, to reach 77,888.35, while the Nifty rose 202.55 points, or 0.87 per cent, to 23,563.60. A total of 2,395 shares advanced, 699 shares declined, and 130 shares remained unchanged.

Broader Market

In the broader market, the BSE Midcap and BSE Smallcap indices rose by nearly 1 per cent.

Among sectoral indices, all but the Nifty FMCG, which fell 0.6 per cent, saw gains. IT and banking stocks were the top performers on the Nifty on Tuesday. Colgate-Palmolive India, Hindustan Unilever, and United Breweries were the major losers on the Nifty FMCG index, each dropping by 1-2 per cent.

The Nifty Auto index rose 1.5 per cent, as auto ancillary stocks like Sona BLW and Samvardhana Motherson surged 7 per cent and 8 per cent, respectively, fully recovering their losses from the previous session. These stocks had fallen over 8 per cent on February 1 after US President Donald Trump imposed a 25 per cent tariff on goods from Canada and Mexico.

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “After the global sell off in equity markets yesterday, there are positive signals today. The decision taken by Trump to temporarily freeze the tariffs on Mexico and Canada and start negotiations is a clear indication of President Trump’s strategy: That is, impose tariffs and then negotiate and strike a deal. The same strategy is likely to be tried with China, too. It is important to understand that a full blown trade war will be damaging for the US, too.”

US President Donald Trump's last-minute move to delay tariffs on Canada and Mexico for 30 days, in return for pledges on border security and crime enforcement, provided some relief to Asian markets. However, with tariffs on China set to take effect at 10:31 am, investors remain cautious. Wall Street faced struggles overnight but managed to recover some of its early losses following the announcement.