Investors' wealth surged by Rs 7.85 lakh crore on Friday following a sharp rally in the stock market as the US announced suspension of additional tariffs on India for 90 days until July 9 this year.

The 30-share BSE benchmark Sensex jumped 1,310.11 points or 1.77 per cent to settle at 75,157.26. During the day, it soared 1,620.18 points or 2.19 per cent to 75,467.33.

The market capitalisation of BSE-listed firms jumped Rs 7,85,135.29 crore to Rs 4,01,67,468.51 crore (USD 4.66 trillion).

From the Sensex firms, Tata Steel, Power Grid, NTPC, Kotak Mahindra Bank, Reliance Industries and Adani Ports were among the biggest gainers.

Asian Paints and Tata Consultancy Services were the only laggards.

The NSE Nifty surged 429.40 points or 1.92 per cent to 22,828.55.

"Markets opened sharply higher in catch up trade, after Thursday's holiday, in reaction to Trump’s tariff pause. In a broad-based relief rally, all sectors and broader mid and smallcaps posted strong gains. However, sentiment remained fragile with trade war now focused on China with tit-for-tat retaliation between the world’s two largest economies," Satish Chandra Aluri, Analyst, Lemonn Markets Desk, said.

China on Friday continued its tit-for-tat move against the Trump administration's tariffs by hiking its additional levies on imports from the US to 125 per cent against duties of 145 per cent by America even as it evinced interest in dialogue with Washington to resolve the impasse.

The BSE smallcap gauge jumped 3.04 per cent and midcap index rallied 1.84 per cent.

All BSE sectoral indices ended higher. Commodities surged the most by 3.40 per cent, followed by consumer durables (2.92 per cent), utilities (2.76 per cent), power (2.64 per cent), energy (2.51 per cent), industrials (2.34 per cent) and consumer discretionary (2.25 per cent).

As many as 3,115 stocks advanced while 846 declined and 118 remained unchanged on the BSE.

"Benchmark index Nifty had a gap up opening after US announced a 90-day pause on tariff hikes for most countries excluding China. The US-China trade war has escalated after China’s retaliation. Despite these global trade uncertainties, Nifty held on to its gains to close higher by over 429 points," Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.

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