Sensex up 1,200 pts, Nifty reclaims 25K peak on hopes of positive US-India deal
Benchmark BSE Sensex soared by 1,200 points while NSE Nifty closed above the 25,000 mark for the first time in seven months on Thursday following across-the-board buying triggered by expectations of potential trade deal between India and the US.
Rising for the second day, the 30-share BSE Sensex jumped 1,200.18 points or 1.48 per cent to settle at a seven-month high of 82,530.74 with 29 of constituents ending higher.
The index moved in a range in the first half but picked up momentum in the afternoon session following sharp gains in banking, auto, IT and oil & gas shares. Sensex rallied 1,387.58 points or 1.70 per cent to hit a day’s high of 82,718.14 in the second half of the session.
The NSE Nifty surged 395.20 points or 1.60 per cent to settle at a seven-month high of 25,062.10. The 50-issue index had closed above 25,000 on October 15, 2024, previously.
“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,” Vinod Nair, Head of Research, Geojit Investments said.
Rate-sensitive sectors such as automobiles and real estate led the rally, supported by upbeat industry forecasts, Nair said adding that 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.
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 per cent. 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. IndusInd Bank emerged as the only laggard.
Broader markets also closed higher with the BSE smallcap gauge climbing 0.94 per cent and midcap index by 0.67 per cent. All sectoral indices ended higher, with realty surging 1.87 per cent and auto (1.86 per cent).
Defence stocks extend winning run
Shares of defence-related firms, including those of drone manufacturers, makers of missiles and allied equipment, continued to attract buyers’ interest on Thursday, ending the day on a firm note. The stock of Sika Interplant Systems zoomed 9.26 per cent, Astra Microwave Products surged 9.23 per cent, Axiscades Technologies soared 5 per cent, Taneja Aerospace & Aviation, which specialises in aerospace and aviation services, edged up 4.99 per cent, Data Patterns advanced 3.30 per cent and Paras Defence climbed 3.12 per cent.
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