At 13:28 IST, the barometer index, the S&P BSE Sensex, rallied 988.12 points or 1.28% to 78,174.86. The Nifty 50 index advanced 290.80 points or 1.24% to 23,651.85.

In the broader market, the S&P BSE Mid-Cap index rose 0.87% and the S&P BSE Small-Cap index added 0.73%.

The market breadth was strong. On the BSE, 2,367 shares rose and 1,452 shares fell. A total of 150 shares were unchanged.

Gainers & Losers:

Shriram Finance (up 4.32%), Larsen & Toubro (up 3.81%), Bharat Electronics (up 3.17%), Tata Motors (2.90%), Adani Ports and Special Economic Zone (up 2.83%) were the major Nifty gainers.

Trent (down 7.09%), Britannia Industries (down 1.97%), ITC Hotels (down 1.37%) Tata Consumer Products (down 1.12%) and Hero MotoCorp (down 1.09%) were the major Nifty losers.

Adani Ports and Special Economic Zone added 2.83% after the firm delivered the highest ever monthly cargo volume of 39.9 MMT in January 2025, higher by 13% on a year on year (YoY) basis, led by containers (up 32% YoY) and liquids and gas (up 18% YoY).

Stocks in Sotlight:

Power Grid Corporation rose 0.21%. The company reported a 4% fall in net profit to Rs 3,862 crore even as revenues rose by 3% to Rs 11,550 crore in Q3 FY25 as compared with Q3 FY24. The public sector undertaking has declared an interim dividend of Rs 3.25 apiece.

Premier Energies slipped 4.89%. The company reported a 491% rise in net profit to Rs 255 crore on a 140% increase in revenue to Rs 1,713 crore in Q3 FY25 as compared with Q3 FY24.

KEC International declined 1.46%. The company has reported a 34% rise in net profit to Rs 130 crore on a 7% increase in revenues to Rs 5,349 crore in Q3 FY25 as compared with Q3 FY24.

Shalby slipped 3.80% after the company reported a consolidated net loss of Rs 1.81 crore for Q3 FY25, compared to a net profit of Rs 19.07 crore posted in Q3 FY24. However, revenue from operations jumped 27.6% YoY to Rs 275.63 crore in the quarter ended 31 December 2024.

NLC India rallied 7.81% after the company's consolidated net profit surged 166.79% to Rs 668.09 crore on 39.41% rise in revenue from operations to Rs 4,411.41 crore in Q3 FY25 over Q3 FY24.

Global Market:

European and Asian markets traded mixed on Tuesday after U.S. President Donald Trump paused tariffs on Mexico for a month. Canada also confirmed that Trump had put proposed tariffs on its exports on hold.

Administration's warning that tariffs on China could increase if a trade deal addressing trade imbalances and fentanyl trafficking is not reached.

Uncertainty surrounding trade policies remains a key concern for investors, particularly given the expressed intent to impose additional tariffs, including a proposed 10% universal tariff.

The Canadian Prime Minister stated on Monday that the U.S. had agreed to a 30-day delay on planned tariffs following a meeting between the two leaders. This announcement came shortly after a similar 30-day delay on tariffs against Mexico was announced after a call between the U.S. and Mexican leaders. However, tariffs on China are still scheduled to take effect on Tuesday. China has expressed strong opposition to these tariffs and vowed to retaliate.

Over the weekend, tariffs were announced: 25% on Canada and Mexico, and 10% on China (with a reduced 10% tariff on Canadian oil).

U.S. stock indices experienced sharp declines on Monday following the tariff announcements but recovered from their session lows after the tariff delays were announced. The S&P 500 closed down 0.8%, the NASDAQ Composite fell 1.2%, and the Dow Jones Industrial Average decreased by 0.3%.

In addition to earnings reports, this week's focus is on the January nonfarm payroll data, which is due on Friday and is expected to influence interest rate expectations.