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Bengaluru: Indian benchmarks soared on Thursday following across-the-board buying by investors and fresh foreign fund inflows into shares. Additionally, investors cheered the prospect of an imminent announcement of a India-US trade deal after United States President Donald Trump said that India had agreed to zero tariffs on American goods.
The 30-share BSE Sensex closed 1,200 points or 1.48% higher to settle at a seven-month high of 82,530.74 with 29 of constituents in the green. During the day’s trading, it had risen up 1.7%. The 50-share NSE Nifty closed above the 25,000 mark for the first time in seven months, rising 1.60% to settle at 25,062.10.
"The market staged a robust rebound, closing with substantial gains, driven by a decline in domestic inflation and positive signals from the US regarding a potential trade agreement with India,” said Vinod Nair, Head of Research, Geojit Investments Limited.
Nair said that interest rate-sensitive sectors such as automobiles and real estate led the rally, supported by upbeat industry forecasts. “Investor attention is now turning to the upcoming speech by the Federal Reserve Chair, which is anticipated to provide further clarity on the future policy trajectory, particularly in light of the recent easing in US inflation data," he said.
All major sectors contributed to the rally, with realty, auto, and metals emerging as the top gainers. The recent surge in the Nifty index has reinforced our positive outlook,” said Ajit Mishra, SVP Research, Religare Broking Ltd
US President Donald Trump on Thursday claimed that India has offered to drop all tariffs on American goods.
Among Sensex shares, Tata Motors was the biggest gainer climbing by over 4%. HCL Tech, Adani Ports, Eternal, Maruti, Reliance Industries and Asian Paints were among the gainers. HDFC Bank, ICICI Bank, Bharti Airtel and Infosys added to the rally. Bank emerged as the only laggard.
Broader markets also closed higher with the BSE smallcap gauge climbing 0.94% and midcap index by 0.67%. All sectoral indices ended higher,
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng settled lower. Markets in Europe were trading on a mixed note.