The BSE Sensex surged 1,061.26 points to open at 74,941.53, while the NSE Nifty climbed 354.90 points, beginning the day at 22,754.05.

Indian Markets Open Strong After Midweek US Rally; Analysts Urge Caution, Latest news: Indian stock markets opened on a strong note Friday, buoyed by a sharp rally in the U.S. markets on Wednesday. The positive momentum followed U.S. President Donald Trump’s announcement of a 90-day deferment on reciprocal tariffs for 75 countries, including India, amid escalating trade tensions with China.

The BSE Sensex surged 1,061.26 points to open at 74,941.53, while the NSE Nifty climbed 354.90 points, beginning the day at 22,754.05. The sharp uptick in Indian equities reflected improved investor confidence after a temporary easing of global trade tensions.

According to ANI, banking and market expert Ajay Bagga said, "Indian markets are set to open higher, mainly due to the strong rally in the US markets on Wednesday after President Trump announced a 90-day delay on reciprocal tariffs. However, the decline in US markets on Thursday also impacted the Gift Nifty, which fell. So, while there was a rally of over 700 points on Wednesday, by Friday morning, the Gift Nifty premium over Wednesday’s domestic Nifty futures had come down to 400 points. It’s still a positive opening, but with reduced momentum."

He further added, "With Monday being a market holiday in India, traders are likely to reduce their positions this afternoon. So a gap-up opening could end with a flattish close. The US dollar index (DXY) falling to 100 is positive for emerging market flows eventually, but overall sentiment remains fragile. Caution is advised. Gold has continued to attract safe-haven buying, along with the Japanese Yen and Swiss Franc."

The midweek rally in U.S. markets was triggered by Trump’s announcement of a 90-day pause on imposing higher tariffs on 75 countries—excluding China. For China, tariffs were immediately raised to 125 per cent in retaliation to Beijing's decision to increase duties on U.S. goods from 34 per cent to 84 per cent, effective April 10.

However, the rally proved short-lived. On Thursday, the Dow Jones Industrial Average dropped by 1,014 points, while the Nasdaq declined by 4.5 per cent, erasing some of the gains from the previous session.

While ANI reported that the U.S. dollar index fell to 100—a development that could benefit emerging markets—analysts have warned that investor sentiment remains fragile and caution is still warranted.