Investors react positively after tariff reduction announcement; stock market sees surge

New Delhi. On Monday night, Donald Trump announced on his social media platform “Truth” that the tariffs imposed on India are being reduced to 18 percent. Additionally, the decision has been made to remove the 25 percent reciprocal tariff. This important announcement is expected to have a positive impact on the domestic stock market, as this deal had been awaited for a long time. The delay in the announcement of the tariff reduction had previously led to a decline in market sentiment.

FIIs’ stance may turn positive
Last year, Foreign Institutional Investors (FIIs) sold off $18 billion from the Indian market, and this selling continued in January of this year as well. However, after the tariff reduction decision, it is expected that the FIIs’ stance may turn positive again. If this happens, FII buying could be seen in the domestic stock market once again, which could further strengthen the market.

Stock market surged on Monday
The stock market witnessed an encouraging trend on Monday. Shares of oil, gas, banking, and automobile companies strengthened, leading to a 943-point rise in the BSE Sensex. The Sensex closed at 81,666.46 points, representing a 1.17 percent increase. The NSE Nifty also registered a gain of 263 points. During trading, the Sensex even touched a high of 81,732.25 points, rising by 1,009.31 points.