Sensex Soars 1,397 Points; Nifty Ends Above 23,700

(RTTNews) - Indian shares ended sharply higher on Tuesday after U.S. President Donald Trump delayed tariffs on Mexico and Canada for a month but gave China no such relief.

After a 10 percent tariff on Chinese products took effect, China announced new tariff measures and export controls to protect its interests.

China's tariff retaliation led to a 2 percent fall in oil prices in European trade, helping ease concerns over inflation and interest rates.

Mostly positive reactions to Budget 2025 and expectations of a rate cut by the Reserve Bank of India (RBI) also underpinned investor sentiment.

The RBI's Monetary Policy Committee (MPC) meeting is scheduled for February 5-7, with high expectations of a 25-basis point cut in the repo rate to 6.25 percent, along with possible actions like a reduction in the Cash Reserve Ratio (CRR) or substantial bond purchases.

The benchmark S&P/BSE Sensex jumped 1,397.07 points, or 1.81 percent, to 78,583.81 while the broader NSE Nifty index closed up 378.20 points, or 1.62 percent, at 23,739.25.

The BSE mid-cap and small-cap indexes climbed 1.3 percent and 1.1 percent, respectively.

The market breadth was positive, with 2,516 shares rising on the BSE while 1,403 shares declined, and 154 shares ended unchanged.

Shriram Finance soared 5.7 percent amid expectations that it will benefit from a surge in consumer spending and a rise in demand for consumer finance, following Union Finance Minister Nirmala Sitharaman's budget announcement to make income up to Rs 12 lakh tax-free and reduce taxes across all income categories.

Among other prominent gainers, Adani Ports, IndusInd Bank, BEL and Larsen & Toubro all surged around 4 percent.

Tata Group's retail arm Trent plunged 6.4 percent after Chinese brand Shein was relaunched in India by Reliance Retail.

ITC Hotels, which was recently demerged from the ITC businesses, lost 4.2 percent.