April 18, India: Sensex and Nifty rose strongly on Friday on prospects of an India-US trade accord before the expiry of a 90-day halt on reciprocal tariffs.
Benchmark equity indices rose strongly on Friday, fueled by increased optimism about a potential India-US trade pact after Washington announced a 90-day freeze on extra reciprocal tariffs.The Indian stock market reflects positive trends in the global market amid the anticipation of further trade tariff exemption by the US.
How to trade stock futures in India in a ‘high’ market
The markets are in high hopes. It opened sharply with the arrival of Trump’s last week declaration of temporary tariff exemption on computers, smartphones, and several electronics imported from a 12.5% proposed duty on Chinese products and a global flat rate of 10%.This could be a great time to know how to trade stock futures in India.
The BSE Sensex closed at 75,157.26, up 1,310.11 points or 1.77 percent. During the day, it rose 1,620.18 points, or 2.19 percent, to 75,467.33. The NSE Nifty rose 429.40 points, or 1.92%, to 22,828.55. In intraday trading, the benchmark gained 524.75 points, or 2.34 percent, to 22,923.90.
Adani Enterprises, Cipla, Tata Motors, Tata Steel, and JSW Steel were among the top five Nifty gainers today, rising up to 5%.
Asian shares had already surged in the previous day on Trump’s tariff halt, with Japan’s Nikkei index jumping 9.1 percent and Taiwan’s benchmark up 9.3 percent.
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Key factors triggering a sharp market rise:
- Fresh tariff suspension on India by Trump:
The declaration through White House executive order rose the sentiments of traders. The news that US has temporarily exempted additional tariffs of up to 26% on India for 90 days (until July 9 this year) created a sharp lift of the market.
The baseline duty of 10% is still there, but the 90-day pause gives breathing space for policymakers and exporters in India to work out a broader trade agreement with the United States.
- The Bilateral Trade Agreement gets a push:
As mentioned earlier, the temporary breather by the US with respect to tariff has provided a momentum to the ongoing talks regarding Bilateral Trade Agreement (BTA) between India and the US. A report indicates that New Delhi is busy finalizing a partial BTA with Washington within the 90-day tariff pause period. You can keep yourselves updated with this news through the trading community and also get the best technical indicators for swing trading.
- Indian traders receive a competitive edge over their counterparts:
The US has granted 90-day tariff pause only to India. This has given Indian exporters a competitive edge over their counterparts from China, Macau, and Hong Kong. According to experts of stocks and securities, India gains advantage due to the rise in US tariffs on China, as this can give an impetus to Indian exports to the US. In addition, retaliation by China can lead to a shift of FIIs (Foreign Institutional Investors) from China to India.
In the Asian markets, Nikkei 225 index of Tokyo and Kospi of South Korea traded lower, while Hang Seng of Hong Kong and Shanghai SSE Composite index were slightly on the higher side. Nikkei 225 index had lost 4%.
The US market ended considerably down on Thursday, a day after a dramatic surge. The Nasdaq composite fell 4.31 percent, the S&P 500 fell 3.46 percent, and the Dow Jones Industrial Average fell 2.50 percent.For the best technical indicators for swing trading, join the trading community and also get authentic trade calls.
- The rise of the rupee:
On Friday, the rupee saw a sharp rise by 51 paise against USD to 86.17 in early trade. This came amid a series of events that included a dip in oil prices, weakening of greenback, the domestic equity market’s strong opening. The soar in the local unit has come within 24 hours of the announcement by the US for the 90-day tariff pause. As a smart investor, you can find the best brokers for futures trading in India through the trading community and make gains while the tariff shifts continue.
India’s three-pronged strategy for the next 90 days
New Delhi is all geared up for the next 90 days to work on a three-pronged strategy, which is aimed towards protecting the domestic industry and fueling up trade relations. No wonder the best brokers for futures trading in India are keeping an eye on these strategies, as they can impact the market.
- First strategy: Trade deal with the US
The preliminary strategy is anticipated to talk about non-sensitive and essential products. The government is thinking of reducing duties on certain items imported from the United States. In turn, Washington may provide tariff relief to New Delhi. Discussions have started between the US administration and the Ministry of External Affairs, Government of India.
- Second strategy: UK and EU trade agreements
India is focusing on diversifying its trade risks. For this, it has almost reached the final stage in negotiations to lock FTA (Free Trade Agreements) with UK and EU at the earliest. This may also impact the futures market. Close connect with a trading community can guide you on how to trade stock futures in India when the markets are swaying.
- Third strategy: Prevent dumping
A step India is taking to protect its domestic markets is bringing into force a stringent mechanism to stop dumping by China and other countries. One strategy towards this includes the implementation of QCO (Quality Control Order) to curb imports from China. It would help to keep a tab on the best brokers for futures trading in India to make the most of the fluctuating market situations.
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