Benchmark stock market indices started the day on a positive note on Thursday following encouraging remarks from the US, hinting at a potential trade deal between the US and India. The upbeat mood was further supported by the Q2 earnings performance.
The S&P BSE Sensex surged by 350.94 points to reach 82,956.37, while the NSE Nifty50 climbed 83.45 points to hit 25,407.00 as of 9:21 am.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, highlighted that recent statements from the US administration suggest a easing of trade tensions between India and the US, raising hopes for a forthcoming trade agreement between the two nations.
Commenting on the situation, Dr. Vijayakumar mentioned, “The US, facing challenges due to China’s stringent policies on rare earth magnets, is showing interest in striking a deal with India by both sides making concessions.”
In the early trading hours, Axis Bank led the gains with a 2.87% increase, followed by Adani Ports rising by 1.46%, Tata Motors gaining 1.05%, Eicher Motors adding 0.97%, and Bharat Electronics climbing 0.86%.
Conversely, Infosys registered a decline of 0.34%, making it the top loser among major stocks. This was followed by Tata Steel down by 0.32%, Sun Pharma with a loss of 0.29%, Tata Consultancy Services (TCS) slipping 0.27%, and Hindustan Unilever marginally down by 0.03%.
Dr. Vijayakumar emphasized, “Despite the robust Indian macroeconomic indicators and the upward revision of GDP growth forecast for FY26, sectors like textiles, gems and jewellery, and leather goods have suffered setbacks in exports and employment. Hence, a trade agreement between the US and India would significantly benefit the markets.”
He also pointed out, “The low CPI inflation rate of 1.54% in September and the potential decline in annual inflation to 2.6% for FY26 create room for further rate cuts by the MPC. This could particularly boost rate-sensitive sectors like automobiles, which are expected to witness sustained high demand in the foreseeable future.”
Please note that the opinions and recommendations expressed in this article are solely those of the experts and do not represent the views of the India Today Group. It is advisable to seek advice from a qualified broker or financial advisor before making any investment decisions.
– Ends