India's stock market experienced a significant surge on Thursday, with both the Sensex and Nifty indices posting substantial gains. The S&P BSE Sensex jumped by 700 points, while the NSE Nifty50 surpassed the 25,300 mark. This rally was fueled by positive cues from global markets and renewed hopes of progress in trade negotiations between the United States and India.
The Sensex was up 785.92 points at 82,695.55. The NSE Nifty50 climbed 251.60 points to 25,409.10. Domestic stock markets closed sharply higher on Thursday after US President Donald Trump claimed that India has agreed to reduce tariffs to zero on a range of American goods as part of a bilateral trade deal. The announcement lifted investor sentiment significantly. The Sensex surged by 1,200.18 points, or 1.48 per cent, to end the day at 82,530.74. During the session, the index touched an intra-day high of 82,718.14. The Nifty index also posted strong gains, closing above the 25,000 mark for the first time since October 2024. It ended the day at 25,062.10, up by 395.20 points or 1.6 per cent.
Contributing to the positive sentiment was a report quoting President Trump as saying that the U.S. is "going to have a good deal" with India. This statement raised expectations of a breakthrough in ongoing trade discussions and spurred buying interest in Indian markets. Market experts also attributed the rise to short-covering following recent market dips.
All sectoral indices on the NSE ended in the green, reflecting broad-based buying across sectors. The Nifty Midcap100 index rose 0.70 per cent, while the Nifty Smallcap100 gained 0.54 per cent. Market volatility eased as well. The India VIX, which measures market fear and uncertainty, dropped by 1.93 per cent to settle at 16.89.
The gains were broad-based, with several sectors contributing to the rally. Tata Motors led the Sensex constituents with a gain of 4.16 per cent, followed by HCL Technologies, which rose 3.37 per cent. Eternal advanced 2.22 per cent, while Adani Ports added 2.19 per cent. Other notable gainers included Maruti Suzuki India, Asian Paints, and ICICI Bank.
Analysts indicated that the recent breakout from consolidation, coupled with a move above the previous swing high, has increased the likelihood of the Nifty reaching 25,690 in the near term. Immediate resistance is placed at 25,360, above which further upside potential may be unlocked. On the downside, 24,400 is expected to act as strong support in the short to medium term.
The market's positive close defied earlier concerns regarding increased US tariffs, with late buying and positive news surrounding potential peace talks and visits by global leaders boosting auto, pharma, metals, and energy stocks.
Overall, the Indian stock market's strong performance reflects a combination of global cues, hopes for a U.S.-India trade deal, and positive domestic sentiment.
