Stocks hit month's high on tariff relief

Stock markets celebrated the Donald Trump administration's pause on tariff hikes on Canada and Mexico, adding nearly ₹6 trillion of wealth as investors bet that a full-fledged trade war is unlikely.

- Dipti Sharma

The Nifty ended up 1.6% at 23,739.25, while the Sensex closed 1.8% higher at 78,583.81, the highest levels in a month. It was a sea of green across sectors—except for Nifty FMCG, which saw a modest 0.3% dip. During the day, the benchmark indices traded as much as 2% higher.

On Monday, the US decided to suspend planned tariffs of 25% on Canada and Mexico for a month after both agreed to block drugs and border-crossing. Investors interpreted this as a signal that the tariff threats were more of a tactic to force the neighbours to the negotiating table, and not intended to spark a bruising trade war.