After having fallen for the past two sessions, Sensex and Nifty opened higher on February 4 tracking gains across Asian markets after the U.S. temporarily halted planned tariffs on Canada and Mexico, easing fears of a full-blown trade war. However, with tariffs on China still set to take effect, volatility remains a key theme. Domestically, all eyes are now on the RBI’s policy decision on February 7.

At 9.45 AM, the Sensex was up 697 points or 0.9 percent at 77,884, and the Nifty was up 204 points or 0.9 percent at 23,565. About 2,312 shares advanced, 670 shares declined, and 127 shares remained unchanged.

U.S. President Donald Trump’s last-minute decision to delay tariffs on Canada and Mexico for 30 days, in exchange for commitments on border security and crime enforcement, offered some relief to Asian markets. However, tariffs on China are scheduled to kick in at 10:31 AM, keeping investors on edge. Wall Street struggled overnight but pared early losses after the announcement.

“Given the ongoing uncertainty around U.S. tariffs, volatility is expected to remain high in the short term. The unpredictability of tariff decisions—whether they are imposed or delayed—adds to market uncertainty,” said Ruchit Jain, Vice President of Motilal Oswal Financial Services.