By Bharath Rajeswaran and Indranil Sarkar
(Reuters) -Indian shares rose on Tuesday, tracking the gains in other Asian markets, after the U.S. paused its planned tariffs on Canada and Mexico, easing concerns over a potential worldwide trade war.
The Nifty 50 had risen by 0.82% to 23,553 points as of 10:12 a.m. IST, while the BSE Sensex had gained 0.88% to 77,858.88.
U.S. President Donald Trump suspended his threat of steep tariffs on Mexico and Canada on Monday, agreeing to a 30-day pause in return for some concessions. Tariffs on China, however, are due to take effect within hours.
“Sentiment has turned positive after Trump delayed the imposition of tariffs on Canada and Mexico,” said Abhishek Goenka, the founder and chief executive of IFA Global.
The Nifty started February on a weak note after a mixed federal budget and the trade war fears, threatening to extend a four-month losing streak. That, however, has made stock prices relatively cheaper.
“With the recent correction, valuations in the large-cap space now seem reasonable, prompting investor interest,” Goenka said.
On the day, 12 of the 13 major domestic sectors advanced.
The metal index rose 2% on the day. It lost 3% in the prior two sessions due to the U.S. dollar’s strength on plans for U.S. tariffs. [MET/L]
Rate-sensitive auto and realty stocks were 1% higher, continuing to benefit from expectations of higher spending after an income tax cut in the budget and on hopes of an interest rate cut later this week.
Oil & Natural Gas Corp rose 2.4% after brokerages highlighted the scope for better earnings due to robust production growth. ONGC had shed 5% in two sessions after missing its December-quarter profit estimates.
Divi’s Laboratories jumped 5.5%, taking its gains to 10% over two sessions after beating third-quarter profit estimates.
(Reporting by Bharath Rajeswaran and Indranil Sarkar in Bengaluru; Editing by Sherry Jacob-Phillips and Savio D’Souza)
