Published 14:20 IST, February 4th 2025
Bulls Are Back! Sensex Zooms Over 1000 Points, Nifty Above 23,600 - What's Fueling The Rally?
The Sensex opened at 77,687.60, recovering from its Monday close of 77,186.74, and surged over 1020 points to 78,207.26 by 1:25 PM.

The Indian stock market made a strong comeback on Tuesday February 4 after witnessing significant losses in the previous session.
The Sensex opened at 77,687.60, recovering from its Monday close of 77,186.74, and surged over 1020 points to 78,207.26 by 1:25 PM.
The Nifty 50 opened at 23,509.90, climbing from its last close of 23,361.05, and gained 293 points to 23,654.15 in early trade.
This recovery came on the back of improved global sentiment, a temporary pause on US tariffs on Mexico and Canada, and expectations of a rate cut from the Reserve Bank of India ( RBI ).
Why Is There A Market Surge?
US President Donald Trump had said he will impose strict tariffs on China, Mexico, and China. In some cases it was said to be as high as 25 per cent.
Investor sentiment has improved after US President Donald Trump temporarily paused his proposed tariffs on Mexico and Canada for 30 days.
The move alleviated concerns over escalating trade tensions that had contributed to Monday’s market crash.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said, "The Indian rupee opened near 86.98 on Tuesday after relief from Trump's tariffs overnight on reaching an agreement with Canada and Mexico.", PTI reported
Following this development, major Asian indices including Korea’s Kospi, Japan's Nikkei, and Hong Kong’s Hang Seng all gained over 1 per cent, setting a positive tone for global markets.
Ajay Bagga Banking and Market Expert told ANI "Indian market futures are indicating a positive opening. The positives of the Union Budget should help the markets. The other positive forecast is the Indian central bank, RBI may start a rate cut cycle on Friday, Feb 7th. Expect short covering to dominate today as markets try to take the US and Asian lead today and recover some lost ground".
He further stated that "Trading on Trump Narratives is extremely harmful. From Currency markets to stock markets to commodities to even crypto assets, markets moved again on Monday night/Tuesday morning as Mexico and Canada obtained a 30-day respite from Trump Tariffs in return for upgrading their border controls, ramping up the fight against drug trafficking and agreeing to negotiate a new agreement".
RBI Rate Cut Hopes Fuel Market Optimism
Investors are now focusing on the upcoming RBI Monetary Policy Committee (MPC) meeting scheduled from February 5-7, where expectations are rising for a 25 basis points rate cut to support economic growth.
Market analysts believe that a rate cut would provide liquidity support and further boost investor confidence, pushing markets higher in the coming weeks.
Rupee Rebounds
On Monday, February 4,the Indian rupee plunged to an all-time low of 87.28 against the US dollar following Trump’s tariff announcement. However, the currency rebounded by 13 paise to 86.98 in early trade on Tuesday as trade tensions eased.
Updated 14:22 IST, February 4th 2025