India’s stock market kicked off Thursday with a strong rally as the Sensex climbed over 700 points and the Nifty 50 crossed 26,000. This surge comes amid growing excitement over a potential India-US trade deal that could cut tariffs and boost exports, even as global markets showed weakness.
Market Opens Strong Despite Global Dip
The BSE Sensex jumped 727.81 points, or 0.86 percent, to reach 85,154.15 in early trading. At the same time, the Nifty 50 rose 188.60 points, or 0.73 percent, to hit 26,057.20. This positive start happened despite a drop in Asian markets and a decline on Wall Street overnight. Broader indices had mixed results, with the Nifty Midcap 100 up by 0.2 percent and the Nifty Smallcap 100 down slightly by 0.1 percent. The Bank Nifty index also gained 0.5 percent, moving above 58,200.
Investors showed broad buying interest across most sectors. The rally built on gains from the past five sessions, where both benchmarks rose about 3 percent. Stable second-quarter earnings from major banks and companies like Reliance Industries helped fuel this momentum. Traders now eye new record highs as festive season sales add to the upbeat mood.
Top Reasons Behind Today’s Market Rise
Several factors drove the Indian stock market higher today. Optimism around international trade talks played a big role, but domestic strengths also contributed.
Here are five key reasons for the surge:
- India-US Trade Deal Optimism: Reports suggest a deal could lower tariffs on Indian exports to 15-16 percent from 50 percent. This might include India reducing Russian oil imports, focusing on energy and agriculture.
- Solid Q2 Earnings: Companies like Reliance Industries posted stable results, boosting investor confidence. Analysts predict earnings will improve in the second half of fiscal 2026, driven by consumption recovery.
- FII Buying and Short Covering: Foreign institutional investors turned buyers recently, adding liquidity. Short sellers covered positions, pushing prices up.
- Festive Season Boost: Record sales during recent festivals could lift corporate profits. This seasonal demand supports sectors like retail and consumer goods.
- Positive Global Cues: Despite some weakness, strong US jobs data and hints of rate cuts from the Reserve Bank of India created a supportive backdrop.
These elements combined to create a bullish environment, with experts noting the rally could accelerate.
Sector Gains and Laggards
Certain sectors led the charge in today’s trading. The Nifty IT index saw strong gains, reflecting hopes for better export conditions under a new trade deal. Nifty Private Bank, FMCG, and Metals also performed well, each up by more than 0.5 percent.
On the flip side, Nifty Realty and Oil & Gas faced pressure, trading in the red. This mixed performance shows how trade deal buzz favored export-oriented areas while energy sectors worried about shifts in oil imports.
To break it down, here’s a quick look at top sector movements:
| Sector | Change (%) | Key Drivers |
|---|---|---|
| IT | +1.2 | Trade deal export boost |
| Private Bank | +0.8 | Stable Q2 results |
| FMCG | +0.7 | Festive demand |
| Metals | +0.6 | Global recovery hopes |
| Realty | -0.4 | Interest rate concerns |
| Oil & Gas | -0.3 | Potential oil import cuts |
This table highlights how the market responded selectively to the news.
Expert Views on the Rally
Market analysts remain positive about the ongoing uptrend. Dr. VK Vijayakumar from Geojit Investments pointed out that the trade deal rumors confirm market reactions, with Nifty futures showing a big premium. He believes this could push the Nifty toward 27,000 in the coming year.
Other experts agree that earnings stabilization and foreign inflows will support growth. However, they warn of volatility if global tensions rise or if the trade deal talks stall. Recent events, like eased India-Pakistan tensions earlier this year, have shown how geopolitical shifts can quickly lift markets.
Consensus for fiscal 2027 earnings looks optimistic at 15 percent growth, led by banks and energy sectors. This outlook ties into broader economic trends, including India’s push to become a manufacturing hub.
What Lies Ahead for Investors
Looking forward, the market could see more gains if the India-US deal materializes. Traders watch for updates on tariff reductions and energy cooperation. With the festive season in full swing, consumer spending might drive further upside.
Analysts suggest focusing on sectors like IT and banking for potential returns. However, risks from global uncertainties remain. Investors should track quarterly results and policy announcements closely.
The rally reflects India’s growing economic ties and domestic resilience. As talks progress, this could mark a new phase for Indian exports and market highs.
What do you think about this market surge? Share your thoughts in the comments and spread the word with friends who follow stocks.
