Sensex, Nifty surge over 2% as tariff pause buoys global stocks

India VIX, a volatility gauge, plunged 20% to close at 16.13 and analysts see it falling to around 12 in coming days

- Dipti Sharma

India's benchmark indices surged by more than 2% after an extended weekend on Tuesday, taking cues from resurgent Asian peers following US President Donald Trump's 90-day pause on tariffs on all trading partners except China.

The Asian markets kicked off the week with gains on Monday, a holiday in India on Ambedkar Jayanti. The mood stayed upbeat on Tuesday, spilling into Indian equities, which added ₹10.5 trillion to market capitalization in a day.

"Today's market movement is the catch-up rally by India," said Gaurav Dua, senior vice president & head-capital market strategy at Mirae Asset Sharekhan. "On Monday, the postponed tariff effective date by 90 days led to rally globally. The Indian market is reacting today due to a holiday yesterday."