Sensex zooms 1,100 pts from day's low, shrugs off Trump's tariff jitters; here's why 

Sensex recovered over 1,100 points from the day's low on Thursday amid hopes of continued trade talks between India and the United States. The crash in the Indian market came after US President Donald Trump announcing a proposed 25 percent tariff on Indian goods with effect from August 1.  In addition, Trump also announced an unspecified penalty related to India's energy and defence purchases from Russia.

However he stated that trade negotiations with India would continue, giving investors hope that the two nations would settle on the lower rate for tariff. Some analysts believe the tariff announcement is a negotiating tactic. Market participants will kenly watch the next round of trade talks scheduled for mid-August.

Easing of crude oil prices and positive global cues also helped Sensex recover lost ground in Thursday's trade. A recovery in the rupee also supported positive sentiment on the Dalal Street today. The rupee recovered 19 paise from the day's low of 87.804 to trade at 87.613 in the afternoon session today. Earlier, it fell 19 paise intra day from the previous close of 87.662.

Brent crude slipped 0.19 percent to $73.10 per barrel. Lower oil prices are positive for the Indian economy as they help easing of inflationary pressures.

Sensex rebounded 1108 points to 81,803 from the day's low in the afternoon session. Earlier, the 30 stock index crashed 786 points or 0.96 percent to a low of 80,695.15.

On similar lines, Nifty index also recovered 321 points from its session low of 24,635 to a high of 24,956 in the afternoon session.

At 2:18 pm, Sensex was trading 167 points higher at 81,648 and Nifty rose 58 pts to 24,913.

Hindustan Unilever, ITC, Jio Financial Services, ETERNAL, PowerGrid, Kotak Mahindra Bank and JSW Steel were among the major gainers, rising up to 4.5 percent intraday.

On the effect of Trump's tariffs, Ajay Garg, CEO, SMC Global Securities said, "The recent imposition of 25% tariffs by the US on Indian exports may appear to be a short-term challenge, but it is unlikely to derail India’s long-term growth trajectory. While the US remains India’s largest export destination, the exports to the country stood at $86.51 billion, which is less than one-fifth of India’s total exports in FY25.

A 25% US tariff may put some pressure on India’s export-driven sectors like engineering goods, textiles, and jewellery. This move underscores the growing trend of protectionism and may compel India to diversify export markets, push for FTA negotiations, and accelerate domestic value addition to maintain global competitiveness.

While Trump’s trade policies unsettle global supply chains, India’s resilience and economic agility are emerging as key differentiators. "