Benchmark indices rebounded sharply on March 5, snapping a 10-day losing streak, as value buying at lower levels and a rally in Asian markets lifted investor sentiment.

US signals tariff relief: A key driver of the market surge was the indication from US Commerce Secretary Howard Lutnick that the Trump administration may ease some tariffs that triggered a global selloff. Lutnick hinted that the US could announce a pathway for reducing tariffs on Mexican and Canadian goods under the North American free trade agreement as early as Wednesday. He suggested that tariffs would likely be adjusted in a measured manner, keeping trade negotiations flexible.

Positive cues from Asian markets also supported the domestic rally. Hong Kong’s Hang Seng Index climbed nearly 2 percent as China pledged fresh stimulus measures amid ongoing trade tensions with the US. Japan’s Nikkei also traded higher, further boosting investor confidence.

The Nifty Midcap 100 and Smallcap 100 indices rose nearly 2 percent, recovering from recent declines. Many stocks in the broader market had reached attractive valuations following the sharp correction.

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