Indian equity benchmark -- Nifty -- ended northward journey near day’s high point on Tuesday, driven by a pause in US tariff actions. US President Donald Trump announced a temporary halt to additional tariffs on imports from Mexico and Canada. Index made a positive opening and began a northward journey, as traders took support with Financial Services Secretary M Nagaraju’s statement that budget proposals for income tax cuts and other tax changes will help banks to mobilise Rs 40,000-45,000 crore additional deposits. Some support also came as Crisil’s report stated that the Indian economy is likely to grow at 6.5% in financial year 2025-26 (FY26), marginally higher than ongoing fiscal year which is estimated to grow at 6.4%. Crisil's outlook highlighted that while government spending will continue to support economic growth, the overall fiscal impulse will reduce as fiscal consolidation progresses.
During the afternoon session, index magnified its gains to trade higher, as sentiments got boost with private report stating that India's fiscal and monetary policies are now focusing more on supporting economic growth, aligning with expectations of a cyclical recovery. The report highlighted that the Union Budget has maintained the path of fiscal consolidation, though at a slightly faster pace than anticipated. Besides, Finance Secretary Tuhin Kanta Pandey has said that there is no concern over rupee value and the Reserve Bank of India (RBI) is managing the volatility of the local currency. He further noted that the Indian rupee is free-float and no control or fixed rate is applicable on the currency.
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