INDIA STOCKS-Indian benchmarks set to erase post-tariff losses as Trump eases up

By Vivek Kumar M and Bharath Rajeswaran

April 15 (Reuters) - India shares joined a global relief rally on Tuesday after U.S. President Donald Trump suggested he might grant more tariff exemptions, putting the domestic indexes on track to recoup their losses since the levies were announced earlier this month.

In early trade, the Nifty .NSEI and Sensex .BSESN surpassed their April 2 closing of 23,332.35 points and 76,617.44 points, respectively, levels last seen before Trump announced steep retaliatory tariffs on countries including India.

The Nifty 50 was up 2.1% at 23,308.55 as of 11:03 a.m. IST on Tuesday, while the Sensex gained 2.09% to 76,726.08.

While the benchmarks briefly erased their post-April 2 losses, their Asian peers continue to trade in negative territory.

"The tariffs have added uncertainty to markets, but India is better positioned than others. With lower exposure to U.S. trade and strong domestic demand, the direct impact remains manageable," said Rahul Singh, chief investment officer of equities at Tata Asset Management.

The recovery follows Trump delaying retaliatory tariffs by 90 days on countries, excluding China, and announcing exemptions on some sectors such as smartphones, computers and other electronic items.

On Monday, the president also suggested he might grant exemptions on the 25% levies for automobiles that are already in place.

Indian markets were closed on Monday for a local holiday.

On Tuesday, electronics makers Dixon Technologies DIXO.NS and Kaynes Technology India KAYN.NS jumped 2.6% and 5.5%, respectively, while automaker Tata Motors TAMO.NS added 4.8%.

Auto part makers, which were expected to take a relatively sharper hit from U.S. tariffs, surged. Shares of Samvardhana Motherson International SAMD.NS and Sona BLW Precision Forgings SONB.NS jumped 7.3% and 7.6%, respectively.

Banks led gains on the day, with HDFC Bank HDBK.NS jumping 3.5% as it lowered its savings bank interest rates, which is seen easing concerns over net interest margins.

The broader, more domestically focussed smallcaps .NIFSMCP100 and midcaps .NIFMDCP100 gained 2.5% and 2%, respectively.