Domestic stocks saw a gap-up opening tracking firm Asian stocks. At 9:30 IST, the barometer index, the S&P BSE Sensex, was up 375.33 points or 1.14% at 33,394.40. The Nifty 50 index was up 125.95 points or 1.24% at 10,254.35.
The S&P BSE Mid-Cap index was up 1.33%. The S&P BSE Small-Cap index was up 1.57%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1,459 shares rose and 197 shares fell. A total of 41 shares were unchanged.
Overseas, Asian shares were trading higher as optimism grew that the US and China will step back from the brink of a trade war. Representatives from China and the US left the door open for a negotiated solution to avoid tariff proposals that wouldn’t take effect for months. Markets in mainland China, Hong Kong and Taiwan were closed for holidays.
China’s tariffs would place 25% duties on major US exports to China including airplanes, autos and soybeans, covering 106 categories of products and affecting $50 billion of goods. The announcement followed plans by the Trump administration to impose tariffs of 25% on Chinese products worth $50 billion, on top of levies introduced on steel and aluminum last month. Retaliatory Chinese levies on US pork and fruit came into effect early this week.
US stocks closed sharply higher yesterday, 4 April 2018 amid heavy intraday volatility as investors speculated the likelihood of, or the potential impact from, a trade war between the United States and China.
Traders and investors are awaiting the outcome of the Reserve Bank of India’s (RBI) monetary policy meeting. The RBI’s two-day Monetary Policy Committee (MPC) meeting began yesterday, 4 April 2018 for the first bi-monthly monetary policy for 2018-2019. The resolution of the MPC will be announced at 14:30 IST today, 5 April 2018. As per reports, the central bank is likely to keep interest rates unchanged in the first monetary policy review of the current fiscal year, amid a gradual recovery in growth and easing inflation.