Post by : Badri Ariffin

Indian stock markets opened with a bang on Thursday as Sensex and Nifty 50 posted strong gains, fueled by optimism over a likely India-US trade agreement. Despite weakness in Asian markets and a fall on Wall Street overnight, domestic equities surged, reflecting growing investor confidence.

The BSE Sensex jumped 727 points to 85,154, while the Nifty 50 climbed 188 points to 26,057 at opening. By midday, the rally had strengthened further, with Sensex up 772 points and Nifty 50 trading above 26,084. Broader markets also joined the uptrend, with the Nifty Midcap 100 up 0.52% and Nifty Smallcap 100 rising 0.24%. Bank Nifty set new record highs above 58,500.

Key Sectors Lead the Rally

All major sectors except Nifty Oil & Gas posted gains. IT, Private Banks, FMCG, Metals, Auto, and Pharma stocks were the top performers. Index heavyweights such as Infosys, Tata Consultancy Services, HCL Technologies, Axis Bank, Tata Steel, and Hindustan Unilever contributed significantly to the upward momentum.

Reports of a potential India-US trade deal, which could cut tariffs on Indian exports from 50% to 15-16%, have been the main catalyst for market optimism. In return, India may gradually reduce imports of Russian oil, with agriculture and energy sectors under discussion.

Strong Earnings Boost Investor Confidence

Positive Q2 results from major companies, particularly Reliance Industries, have strengthened investors’ risk appetite. Analysts believe the corporate earnings trajectory is stabilizing, with expectations of a consumption-led recovery in H2FY26.

Foreign Institutional Investors (FIIs) continued to support the market, buying equities worth ₹96.72 crore, while Domestic Institutional Investors (DIIs) sold ₹607.01 crore, highlighting the ongoing trend of overseas inflows driving the rally.

Technical Factors and Market Dynamics

Short-covering after recent market consolidation also contributed to the gains. Technical indicators show Nifty 50 trading near its upper Bollinger band, suggesting strong momentum. Analysts suggest the immediate upside target is 26,186, with an optimistic objective of 26,800, while the downside support is around 25,780.

Investors are advised to adopt a “buy-on-dips” strategy and closely monitor market levels, as the broader sentiment remains cautiously bullish amid global uncertainties and festival-season trading.

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