Positive global cues and trade optimism drive Sensex and Nifty gains
Both countries agreed to push for an early and mutually beneficial conclusion to a trade agreement
Benchmark indices Sensex and Nifty opened on a strong note on Wednesday, buoyed by optimism over renewed India–US trade talks. Both countries agreed to push for an early and mutually beneficial conclusion to a trade agreement during a day-long round of discussions with a visiting US delegation.
The 30-share BSE Sensex rose 262.74 points in early trade to 82,643.43, while the NSE Nifty advanced 85.25 points to 25,324.35. Among the key gainers on the Sensex were Bharat Electronics, UltraTech Cement, Trent, Larsen & Toubro, TCS, HCL Tech, Infosys and Tech Mahindra. In contrast, Adani Ports, Mahindra & Mahindra, Tata Steel and Eternal came under pressure.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said market momentum was being driven by “a combination of positive sentiment and improving fundamentals.”
He noted that investors were hopeful the trade talks would pave the way for the withdrawal of the 25 per cent penal tariffs imposed on Indian goods, adding that such a move would provide a “huge boost to sentiment.”
He further pointed to GST reforms as a structural driver expected to fuel strong demand, particularly in the automobile sector.
The Commerce Ministry, issuing a statement after the talks on Tuesday, confirmed that both sides had agreed to intensify efforts for an early conclusion of a mutually beneficial deal.
Globally, Asian markets presented a mixed picture: Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng were in positive territory, while South Korea’s Kospi slipped. Wall Street ended lower on Tuesday.
Attention now turns to the US Federal Reserve, widely expected to trim interest rates by 25 basis points later on Wednesday. “More than the rate cut itself, markets will be closely watching the Fed’s commentary on the economic outlook and the trajectory of future action,” Vijayakumar said.
Meanwhile, global oil benchmark Brent crude edged down 0.16 per cent to USD 68.36 a barrel.
Foreign institutional investors (FIIs) were net buyers on Tuesday, purchasing equities worth Rs 308.32 crore, according to exchange data. On the same day, the Sensex had rallied 594.95 points, or 0.73 per cent, to close at 82,380.69, while the Nifty gained 169.90 points, or 0.68 per cent, to settle at 25,239.10.