Sensex Surges Over 800 Points in Two Hours, Investors Gain Rs 4.5 Lakh Crore After US Tariff Announcement Is Put on Hold

The Indian stock market experienced a dramatic turnaround on Thursday following the scare caused by US President Donald Trump’s announcement of a 50 percent tariff on Indian goods. The Bombay Stock Exchange’s benchmark index, the Sensex, initially tumbled over 700 points in the morning session, dipping below the 80,000 mark for the first time since May 9. Similarly, the National Stock Exchange’s Nifty 50 index also fell sharply, breaching levels not seen since early May.

The market endured panic for more than four hours, with the Sensex opening at 80,262.98 and steadily declining to a day’s low of 79,811.29 points by around 1:30 pm. The Nifty 50 mirrored the fall, sliding by over 230 points to reach 24,344.15 points.

However, after 1:30 pm, a remarkable recovery unfolded. The Sensex rebounded strongly, climbing more than 900 points from its lowest point to hit a high of 80,737.55 just before closing. It finally closed the trading day at 80,623.26 points, marking a gain of approximately 812 points from the low. Meanwhile, the Nifty also bounced back impressively, ending at 24,596.15 points—a 228-point rise from its day's low and a net gain over the previous day.

Experts credit this sharp U-turn to the US decision to put the tariff hike on hold until August 27, easing immediate fears and restoring market confidence.

Among the top gainers in the Sensex were Tech Mahindra, HCL Tech, Eicher Motors, Axis Bank, and Maruti Suzuki, with increases between 0.7% and 1.7%. Sector-wise, IT and financial stocks provided strong support, with IT stocks gaining 0.1% and finance stocks rising 0.9%. Bank indices, including Nifty Bank and Nifty PSU Bank, also saw gains. Conversely, energy and oil & gas stocks remained subdued amid global supply concerns but recovered slightly towards the close. The auto and pharmaceutical sectors also rebounded to close higher.

Notably, Hero MotoCorp shares surged 4.2%, fueled by better-than-expected quarterly results. The broader market sentiment remained buoyant with mid-cap and small-cap indices also posting gains.

The rapid recovery in the last two trading hours resulted in a massive wealth creation for investors, with the total market capitalization of the BSE swelling by about Rs 4.5 lakh crore—from Rs 4,40,87,150.80 crore at the day’s low to Rs 4,45,35,676.87 crore at close.

This volatile trading day underscores how geopolitical developments like US tariffs significantly influence market sentiment but also how timely policy responses and delays can restore stability and optimism among investors.