Dalal Street's benchmark equity indices Nifty 50 and Sensex saw a gap-up open, extending gains for the sixth consecutive session on Thursday, October 23, driven by optimism over the U.S.-India trade deal.
At 09:35 a.m., the Sensex was up 726.66 points or 0.86 percent at 85,153.00, and the Nifty was up 206.25 points or 0.80 percent at 26,074.85. The last time the Nifty 50 index traded at the 26,000 and 26,100 levels was on September 30, 2024, while the index last touched the 26,200 mark on 27 September, 2024.
Sectoral indices opened mostly in the green, with IT stocks leading the rally. The Nifty IT index jumped 1.78 percent, followed by gains in Nifty Metal, Private Bank, and Consumer Durables, which rose between 0.4-0.5 percent.
Auto, Financial Services, FMCG, Pharma, PSU Bank, and Oil & Gas indices also edged higher in the range of 0.2-0.4 percent, reflecting broad-based optimism across sectors. However, Nifty Media and Realty saw marginal losses, slipping 0.06 percent and 0.02 percent respectively.
According to reports, Washington DC could slash the tariff rate on India from 59 percent, to roughly 15 percent, as New Delhi moderates its oil purchases from Russia. Sources to Mint suggested the countries were approaching a trade deal.
On the occasion of Diwali, President Trump said, “I spoke to Prime Minister Modi today and we just have a very good relationship. He's not going to buy much oil from Russia. He wants to see that war (between Russia and Ukraine) end as much as I do. They're not going to be buying too much oil.”
Prashanth Tapse, Senior VP (Research), Mehta Equities noted that the market mood remains buoyant as the U.S. reportedly plans to slash tariffs on Indian imports, which is a "game-changing move" that could supercharge India’s trade competitiveness and exports.
With global sentiment turning supportive, Nifty’s record high of 26,277.35 appears well within reach, and a surge towards the 27,000 mark over the next year looks likely. The rally, initially fuelled by the RBI’s dovish stance, is broadening out signalling that happy days are here again.
Further, foreign institutional investors (FIIs) have turned into buyers over the past few sessions in order to cover their short positions, as the markets rallied. FIIs' shorts in index futures fell from 94 percent to 82 percent, from the start of the October series to the special Muhurat session.
On the technical front, Amruta Shinde, Technical & Derivative analyst at Choice Broking noted that the Nifty 50 managed to close above the 25,850 mark in the previous session. "This positive momentum suggests continued strength in the near term. On the downside, immediate support is placed at 25,800, followed by 25,700, while on the upside, resistance is seen at 26,100 and 26,200 levels."
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