MUMBAI: Indian equities are poised for a strong opening on Friday, buoyed by a global market surge after US President Donald Trump announced a temporary halt to new tariffs. Asian and European indices posted record gains, setting a positive tone for domestic trading.
Japan’s Nikkei 225 and Taiwan’s Taiwan Weighted Index surged more than 9% each and South Korea’s Kospi rose more 6.6%. Hong Kong’s Hang Seng and China’s Shenzhen and Shanghai Composite also advanced between 1% and 2% on Thursday.
Key European markets such as the UK’s FTSE, France’s CAC and Germany’s DAX advanced between 4% and 5% on Thursday. This massive gain across Asian and European markets came after Wall Street recorded a record again on Wednesday after US President Donald Trump announced a Tariff pause.
The Indian stock exchanges were closed on Thursday, April 10, for Mahavir Jayanti.
The S&P 500 skyrocketed 9.52% to settle at 5,456.90 for its biggest one-day gain since 2008. The Dow Jones Industrial Average advanced 2,962.86 points, or 7.87%, to close at 40,608.45 and The Nasdaq Composite jumped 12.16% to end at 17,124.97, its largest one-day jump since January 2001.
The US markets, however, opened lower on Thursday. The Dow Jones, the S&P 500 and the Nasdaq were down about 2-3% each in the first hour of trade. Further, a tepid show by TCS in its Q4 earnings might weigh on sentiments.
“The Indian market is expected to open strongly on Friday. However, with the news about Trump being absent for about 90 days, it’s essentially back to basics,” said Anand K Rathi, Co-Founder of Mira Money.
In yet another surprising change, Trump announced a 90-day “pause” on reciprocal tariffs for more than 75 countries. However, China was excluded and tariffs on Chinese goods were raised to 125% effective immediately.
Rathi added that Q4 results will play a crucial moment in shaping market trends. “The markets will begin focusing on results and the management commentary regarding their outlook for the new fiscal year and the potential impact of Trump’s tariffs on India. If the commentary weakens, the markets may experience significant downward pressure, underlining the situation's urgency,” he added.
Pranay Aggarwal, Director & CEO of Stoxkart said that recent developments in US trade policy under President Donald Trump have led to significant fluctuations in global markets, including those in India.
“In my view, Indian markets could also witness some revival tomorrow, driven by positive expectations from this 90-day pause. Even though this pause has provided temporary relief, sectors directly impacted by the tariffs, such as pharmaceuticals and seafood exports, continue to face challenges,” added Aggarwal.
He advised investors to closely monitor ongoing trade negotiations and sector-specific developments to navigate this period of global uncertainty.