Indian shares joined a global relief rally on Tuesday after U.S. President Donald Trump signaled more tariff exemptions, helping the benchmark Sensex recover losses from earlier this month.
The Nifty and Sensex surpassed their April 2 closing of 23,332.35 points and 76,617.44 points, respectively, during the day.
The 50-stock index closed 2.19% higher at 23,328.55, just 4 points shy of the April 2 closing level before Trump announced reciprocal tariffs, while the Sensex gained 2.1% to 76,734.89.
The indexes have outperformed their Asian peers, which continue to trade in negative territory since Trump's tariff announcement.
India's limited export dependence on the U.S. and an expected earnings recovery should support domestic equities, said Anupam Tiwari, head of equity at Groww Mutual Fund.
Financials contributed to half of the Nifty 50's gains on the day, with HDFC Bank jumping 3.2% as it lowered its savings bank interest rates, which is seen aiding its net interest margins.
Electronics and auto makers were among top gainers on the day following the tariffs-related developments.
Trump exempted smartphones, computers and other electronic items from steep reciprocal tariffs, and also suggested reprieve for automobiles sector from the current 25% levies.
Dixon Technologies and Kaynes Technology India jumped 4.4% and 8.4%, respectively, while automaker Tata Motors added 4.6%.
Auto part makers Samvardhana Motherson International and Sona BLW Precision Forgings jumped 8% and 7.5%, respectively
"Any resolution of U.S. tariffs could boost sentiment for equities," Tiwari said.
The broader, more domestically focussed smallcaps and midcaps gained about 3% each.
"Selective opportunities in several small and midcaps have emerged following the recent market correction as it made the valuations reasonable," said Nehal Meshram, senior analyst of manager research at Morningstar Investment Research.
