The Indian stock market witnessed a surge today, fueled by renewed optimism surrounding trade discussions between India and the United States. Both the Sensex and Nifty indices responded positively to the news, reflecting investor confidence in potential economic benefits arising from strengthened bilateral trade relations.

The BSE Sensex, a benchmark index of the Indian stock market, jumped over 400 points in early trade. According to ET Now, at approximately 1:30 PM today, the 30-share BSE Sensex climbed 201.69 points to 81,987.43. The NSE Nifty also experienced a rally, crossing the 25,000 mark. The 50-share NSE Nifty went up by 52.8 points to 25,122.

The positive momentum in the Indian stock market mirrors a broader global trend. A rally in global peers instilled optimism in the domestic stock market ahead of this week's US Federal Reserve policy meeting.

Several factors contributed to the market upswing. Comments from U.S. President Donald Trump indicating progress in trade negotiations with India boosted investor sentiment. Trump expressed confidence in reaching a successful conclusion to ongoing discussions, further fueling positive expectations. Anticipation of potential goods and services tax (GST) reductions also played a role in bolstering market sentiment.

On the sectoral front, financial and IT shares led the gains. Kotak Mahindra Bank emerged as a top gainer in the Sensex, with shares surging over 2.50%. HCL Tech, Tata Consultancy Services, Tech Mahindra, Larsen & Toubro and Infosys were also among the major gainers.

Market analysts suggest that the Nifty index faces a crucial juncture as it approaches key resistance levels. Analyst Mayank Singh Chandel said that the market momentum was improving, supported by bullish Relative Strength Index (RSI) crossovers and sustained buying interest. A sustained close above 25,150–25,200 could negate the lower-high lower-low structure and trigger a sharp rally toward 25,500. However, failure to hold above the 25,000 mark could lead to profit booking, potentially dragging the index down to 24,750.

Foreign Institutional Investors (FIIs) have also shown renewed interest in the Indian market, becoming net buyers of stocks. This shift in investment patterns further contributed to the positive market sentiment.

Overall, the Indian stock market's strong performance today reflects growing optimism surrounding India-U.S. trade relations and positive global cues. While the Nifty index faces key resistance levels, a decisive breakout could pave the way for further gains in the short term.