Earlier, indications of a softer stance by President Trump on the additional tariffs boosted global stock markets, preventing a downturn on Tuesday. Trump stated that Japan would send a delegation to Washington for negotiations. He also mentioned that China desires a deal but is unsure how to initiate it. His statement, “We are waiting for their call,” instilled hope among investors that the US might soften its tariff policy, leading to a market turnaround. The Nasdaq rose by 4.5%.
Meanwhile, in India, the stock market made a sharp turnaround and jumped nearly 1.5% amid all-round buying and signals of a possible rate cut in the Reserve Bank’s monetary policy review. RBI Governor Sanjay Malhotra is set to announce the decisions of the Monetary Policy Committee on Wednesday. It is expected that the central bank may cut the repo rate by 25 basis points.
However, as soon as the news broke that Trump had imposed a 104% tariff on China, selling began in the US stock market. The Nasdaq fell by nearly 1%, and the S&P 500 and Dow Jones met a similar fate, losing all their intraday gains of around 3% and closing in the red
China Extends Hand of Friendship, Calls for Unity
On Tuesday, a spokesperson for the Chinese Embassy in India stated that India and China need to unite to overcome the difficulties posed by the tariffs imposed by the administration of US President Donald Trump. In a post on the social media platform X, Chinese Embassy spokesperson Yu Jing (Yu Jing) said, “Economic and trade relations between China and India are based on complementarity and mutual benefit. The US is misusing tariffs. The two largest developing countries in the world should stand together to counter this.”Small and Mid-Cap Stocks Also Rise
The Bombay Stock Exchange (BSE) Sensex, comprising 30 stocks, closed with a significant increase of 1089.18 points (1.49%), reaching 74,227.08 points. The National Stock Exchange (NSE) Nifty surged by 374.25 points (1.69%), closing at 22535.85 points. Similar to the BSE’s blue-chip companies, mid-cap and small-cap stocks also witnessed significant buying on Tuesday. The mid-cap index strengthened by 1.87%, reaching 39,837.44 points, while the small-cap index jumped by 2.18%, reaching 44,932.42 points.
