Shrugging off concerns over the 25 per cent tariff imposed by US President Donald Trump, the Indian stock market staged a smart rebound in intraday trade on Thursday, July 31, with stocks such as Hindustan Unilever (HUL), ICICI Bank, and ITC leading the recovery.
The Sensex jumped over 1,100 points from the day’s low, while the Nifty 50 reclaimed the 24,950 level. Volatility index India VIX rose nearly 4 per cent during the session.
Around 2:20 PM, the Sensex was 166 points, or 0.20 per cent, up at 81,648, while the Nifty 50 was 54 points, or 0.22 per cent, up at 24,909.
Why is the Indian stock market rising?
The rise in the benchmark indices appears to stem from the belief that Trump’s tariffs will impact certain sectors and stocks, but not the overall market.
Trump announced a 25 per cent tariff and a penalty on India on July 30, effective August 1. These tariffs are likely to affect certain sectors, such as textiles, auto components, leather goods, gems and jewellery, and some food exports.
(This is a developing story. Please check back for fresh updates.)
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