Indian benchmark indices The Sensex and Nifty surged in the second half of Tuesday, closing nearly 2 per cent higher after the US paused its planned tariffs on Canada and Mexico, providing temporary relief from escalating trade tensions.

On February 4, Indian stock market benchmarks Sensex and Nifty 50 gained over 1%, turning positive for the year, despite concerns about weak quarterly earnings and foreign capital outflows.

Indian equity markets tracking positive Asian cues and amid across-the-board buying traded substantially higher. On Monday, Trump agreed to a 30-day pause on his tariff theats against Mexico and Canada.