Share Market Today: Indian Stock Market Sees Strong Rally on February 4
After yesterday’s decline, the Indian stock market is witnessing a significant rally today, February 4. The positive market movement is being driven by factors such as US President Donald Trump’s postponement of additional import duties (tariffs) on Canada and Mexico, strong manufacturing data, and the appreciation of the rupee against the dollar. As a result, the market is up by approximately 1 to 1.70% today.
At 3:00 PM, the Sensex had risen by 1,310 points, or 1.70%, reaching 78,496.97, while the Nifty 50 index had climbed by 368.80 points, or 1.58%, to 23,729.85.
Donald Trump Suspends Import Tariffs
Investor sentiment has been buoyed by the news that US President Donald Trump has announced the temporary suspension of additional tariffs on imports from Mexico and Canada. Just a few days ago, the US had decided to impose a 25% tax on Canadian and Mexican imports and a 10% tax on Chinese goods, which had intensified the global trade war. However, Trump’s decision to backtrack on the tariffs for Canada and Mexico (while still maintaining them for China) has triggered a rally in stock markets worldwide, including India.
Improvement in Indian Manufacturing Sector
India’s manufacturing sector has shown signs of improvement, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) rising to 57.7 in January from 56.4 in December. This increase reflects strong demand and a boost in GST collections, which hit a nine-month high of ₹1.92 lakh crore in January.
Rupee Recovers Against the Dollar
The rupee has recovered against the US dollar, trading at ₹86.98, up by 13 paise from its all-time low. The rupee also found support as the US dollar index fell to 108.74 from 109.88, following Trump’s suspension of the tariff decision on Canada and Mexico.
Asian Stock Markets See Gains
Other major Asian stock markets are also experiencing gains today. Indices such as Japan’s Nikkei, Hong Kong’s Hang Seng, and South Korea’s Kospi are up by 1-2%, which has created a positive sentiment among global investors.
