Mumbai (Maharashtra) [India], October 23 (ANI): Indian stock markets opened with a strong rally on Thursday, driven by positive investor sentiment ahead of a likely US-India trade deal.
The Nifty 50 index crossed the 26,000 mark for the first time after September 2024, opening at 26,057.20, up 188.60 points or 0.73 per cent. Its last 52-week high was 26,277.35.
The BSE Sensex also surged, opening at 85,154.15, a gain of 727.81 points or 0.86 per cent, close to its all-time high of 85,478.25 recorded on September 27, 2024.
Experts attributed the rally to reports of an imminent meeting between US President Donald Trump and Prime Minister Narendra Modi, along with expectations of a US-India trade deal.
Ajay Bagga, Banking and Market Expert, told ANI, “Indian markets are showing a positive gap-up open as per the futures positioning. There are reports of an imminent Trump-Modi meeting and an announcement of a US-India trade deal that cuts tariffs from 50 per cent to 15 per cent for Indian exports to the US. India could pledge more US energy, defence, and agri exports and a glide path to reducing Russian oil purchases. Indian markets are moving up in this anticipation”.
He further added “We feel the announcement will be calibrated given the Bihar elections in early November, to avoid any opposition accusations of ‘selling’ out Indian energy and farm interests. Overall negative global sentiments but positive Indian sentiments are in a fight.”
In the broad market indices on NSE, Nifty 100 surged 0.48 per cent, Nifty Midcap 100 up by 0.11 per cent, Nifty Small cap 100 lost 0.20 per cent in the opening session.
In the sectoral indices on NSE, except Nifty Pharma all other sectors opened with gains. Nifty IT surged 1.87 per cent, Nifty Private Bank 0.52 per cent, Nifty FMCG 0.56 per cent and Nifty Auto surge 0.20 per cent.
Among corporate results today, key companies reporting include Hindustan Unilever, Colgate-Palmolive (India), Laurus Labs, Vardhman Textiles, Tata Teleservices (Maharashtra), Sagar Cements, and PTC India Financial Services.
Globally, markets remain cautious. US markets have lost momentum, with safe-haven assets such as gold and silver seeing continued declines, despite earnings upgrades for the S&P 500 hitting the highest levels since 2021.
Ongoing trade tensions, a 22-day long US government shutdown, concerns over overextension in AI and capital expenditure, and US-China tariff rhetoric have contributed to subdued market performance.
Oil prices, however, are rising sharply following US sanctions on Russian oil firms. Earlier, plans for a proposed Putin-Trump meeting in Budapest were postponed due to lack of progress on a common negotiation framework.
Manav Modi, Analyst for Precious Metals Research at Motilal Oswal Financial Services, noted, “Gold price, after a significant rise, moved into a new phase and continues to be volatile. No major fundamental has changed for such a big fall; however, the market is setting equilibrium as riskier assets witness a surge. Along with a slight surge in the dollar index, panic selling amidst margin calls at elevated levels triggered volatility in the market.”
In Asia, markets were largely negative, with Japan’s Nikkei 225 down 1.25 per cent, Taiwan’s weighted index losing 0.4 per cent, Hong Kong’s Hang Seng Index declining 0.07 per cent, and South Korea’s KOSPI down 0.06 per cent. (ANI)
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