India’s stock market witnessed a strong rally on Thursday morning, with the Sensex jumping 760.80 points to 85,187.14 and the Nifty50 rising 218.50 points to 26,087.10, as investor sentiment turned highly bullish amid reports of a potential India–US trade deal nearing finalization.
The surge extended the ongoing festive rally and reflected growing optimism on Dalal Street that a breakthrough in trade negotiations could significantly benefit key export-driven sectors.
🇮🇳 India–US Trade Deal Fuels Optimism
According to reports, India and the United States are in the final stages of concluding a long-awaited trade agreement that could reduce U.S. tariffs on Indian exports from as high as 50% to around 15–16%.
The proposed pact, which reportedly focuses on energy and agriculture, may also include provisions for India to gradually reduce crude oil imports from Russia, aligning with Washington’s broader strategic interests.
Market experts say the growing expectation of this deal is driving the rally.
Gaurav Sharma, Associate Vice President and Head of Research at Globe Capital, told Business Today that the surge is “basically the outcome of the fact that we are nearing a deal.”
He added that Commerce Minister Piyush Goyal’s recent meetings with U.S. officials have bolstered confidence that a major announcement could be imminent.
💹 Sectoral Boost: IT, Pharma, and Textiles in Focus
The Nifty IT index soared nearly 2%, with Infosys leading the pack — gaining close to 3% on expectations of stronger U.S. business volumes and a forthcoming share buyback.
IT and pharmaceutical companies, which were among the hardest hit by higher U.S. tariffs, are now seen as the biggest potential beneficiaries of the deal.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said,
“If the reported 15–16% tariff structure materialises, it will be a major positive for the economy and equities. Festive sales momentum, renewed FII buying, and short-covering are further fueling the rally, with textile stocks likely to benefit.”
📊 Technical Indicators Point to Further Upside
Market analysts also point to strong technical momentum behind the uptrend.
Anand James, Chief Market Strategist at Geojit, noted that Nifty continues to trade near the upper Bollinger Band, with upside targets at 26,186 and 26,800, while support lies near 25,780.
He added, “An outright reversal is unlikely today,” suggesting that bullish sentiment could continue in the near term.
🔮 Can the Rally Sustain?
With the festive season underway and optimism around a potential trade breakthrough, investors are eyeing whether the Sensex and Nifty can scale fresh record highs before the end of the year.
Experts believe that continued foreign institutional investor (FII) inflows, retail participation in buybacks, and robust festive spending will provide near-term support.
However, analysts caution that sudden global cues, geopolitical tensions, or any delays in trade talks could introduce short-term volatility.
For now, the sentiment remains decisively positive — and with benchmarks approaching record territory, Dalal Street is brimming with festive cheer and confidence.
Originally published on newsworldstime.com.
Originally published on 24×7-news.com.
