Why did indian stock market rocket even after Trump's tariff threat?
donald trump said on wednesday that he will impose reciprocal tariffs on many countries including india from april 2. This news came even before the market opened, people thought that perhaps this would have a bad effect on the market, however, this did not happen. Rather, today was a day of relief for the indian stock market. On wednesday, the domestic stock market started with a rise after continuous decline. By 11:50 am, the Sensex rose 841.15 points to 73,831.08, while the Nifty was trading at 22,369.40 with a gain of 286.75 points.
What are the major reasons for the rise?
Strong recovery in IT stocks
According to the report of india Today, today the shares of IT companies supported the market. Coforge shares rose nearly 10 per cent as the company signed a 13-year, $1.56 billion deal with Sabre Corp. Besides, Infosys and Persistent Systems shares also moved higher after being included in JPMorgan's 'High-Conviction Ideas List'.
The IT index gained 2 per cent, after falling more than 8 per cent in the last 10 sessions.
Asian markets showed improvement
Asian markets also saw a rise. US Commerce Secretary Gina Raimondo's statement supported the markets. She said that some tariffs imposed on canada and mexico could be withdrawn. This created a positive atmosphere in Asian markets. indonesia market rose 3 per cent, while Malaysian Ringgit and South Korean Won also saw strength.
service sector also saw growth
India's service sector showed good growth in February. HSBC's services PMI (Purchasing Managers' Index) rose to 59.0 from 56.5 in January. An increase in export orders played an important role in this growth.
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