Trump's Tweet Triggers Nifty's Triumph

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Posted by AI on 2026-02-02 20:17:49 | Last Updated by AI on 2026-02-04 06:56:12

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The Indian stock market is poised for a significant rally, with the Nifty 50 index on the GIFT City exchange surging by over 600 points in early trade. This remarkable surge was sparked by a single tweet from US President Donald Trump, who announced a significant reduction in tariffs on Indian goods, sending shockwaves through the financial world.

In a surprise move, President Trump took to his preferred social media platform, Truth Social, to reveal that the US would immediately slash reciprocal tariffs on Indian imports from 25% to 18%. This announcement came on the heels of a phone call with Indian Prime Minister Narendra Modi, indicating a potential thaw in trade relations between the two nations. The tweet read, "Just had a great call with PM Narendra Modi. We are reducing tariffs on India's steel and aluminum to 18% from 25%. This will be a big boost to Indian manufacturing and a great sign of our friendship!"

The market's response was swift and substantial. The Nifty 50 index, which represents the top 50 companies on the National Stock Exchange of India, soared by over 600 points within hours of the tweet. This surge is a welcome relief for investors, especially after the recent market volatility and concerns about global economic growth. The move is expected to boost Indian exports to the US, benefiting sectors like steel, aluminum, and textiles, which have been subject to higher tariffs since 2018.

As the market digests this unexpected development, analysts predict a sustained period of optimism for India's economy. The sudden tariff reduction has the potential to significantly enhance India's trade competitiveness in the US market, fostering a more robust economic partnership between the two democratic giants.

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