Nifty Jumps 750 Points, Sensex Opens 2,400 Higher: The Indian stock markets opened in ‘dark green’ on Tuesday hours after the much-awaited India-US trade deal. Nifty immediately jumped 750 points, while Sensex opened 2,400 points higher in the early trading hours. This market sentiments has changed overnight after Washington announced to cut its tariff on Indian goods to 18 percent as New Delhi halted Russian crude oil purchases. US President Donald Trump on Monday (local time) took to Truth Social and announced that India and America have ‘agreed to a Trade Deal’. Both countries agreed to the deal after several months of talks. During the negotiation process, the Trump administration imposed a 50 percent tariff on Indian exports to US. Of this, 25 percent was linked to New Delhi’s crude oil purchases from Russia which Washington said was indirectly funding Russia’s war against Ukraine.
Under the current deal, India will stop purchasing Russian crude oil and buy more from America and potentially, Venezuela’s crude oil. Following the major announcement, Asia-Pacific markets have started to rise on Tuesday. Investors are taking the India-US decision to cut tariffs on each other’s goods very positively. The US President took to Truth Social and wrote that PM Modi had agreed to step up purchases of US goods.
US-India Trade Deal
Under the current deal, India will stop purchasing Russian crude oil and buy more from America and potentially, Venezuela’s crude oil. Following the major announcement, Asia-Pacific markets have started to rise on Tuesday. Investors are taking the India-US decision to cut tariffs on each other’s goods very positively. The US President took to Truth Social and wrote that PM Modi had agreed to step up purchases of US goods.
Asia Markets Rise On US-India Trade Deal Optimism
After the announcement, Japan’s Nikkei 225 started showing gains, adding 2.44 percent, while Topix added 1.94 percent. South Korea’s Kospi witnessed a jump of 5 percent, indicating a buy emotion.
According to Korea Exchange, the jump witnessed after KOSPI 200 futures climbed more than 5 percent for more than a minute. On Monday, the sidecar was activated following Kospi 200 futures’ 5 percent drop. This development also prompted authorities to temporarily halt trading. The small-cap Kosdaq rose 2.32 percent.
Hang Seng Futures Trade Higher, Australia’s ASX 200 Climbs 1.3 percent
Hong Kong Hang Seng index futures climbed above the benchmark at 26,953, it was last closed to 26,775.57.
Meanwhile, Australia’s S&P/ASX 200 also witnessed a rise of 1.3 percent.
Close Eye On Gold And Silver Prices
Investors are keeping a close eye on gold and silver prices following recent volatility during which silver prices dipped around 30 percent on Friday. It was the silver’s worst one-day performance since 1980. The yellow metal also plunged to 10 percent.
Spot gold added 2.22 percent to USD4,769.33 per ounce. Silver added 3.81 percent to USD82.39 per ounce.
Overnight in America, stocks jumped as Wall Street started the new month. Investors brushing aside recent losses in silver and bitcoin.
