The equity benchmark indices climbed on Thursday, tracking positive cues from Asian markets and supported by optimism around a possible India-US trade deal.
The Sensex rose 383.61 points or 0.46 percent to 83,793.30, while the Nifty advanced 110.30 points or 0.43 percent to 25,563.70.
Oil & Natural Gas Corporation, Mahindra & Mahindra, Apollo Hospitals Enterprise, Maruti Suzuki India and Hindalco Industries were among the major gainers, rising up to 2 percent.
Key Factors Driving Market Gains:
1) India-US Trade Deal Optimism: US President Donald Trump on Wednesday announced a trade deal with Vietnam that would lower tariffs to 20 percent from 46 percent. The development raised hopes of similar easing in other trade relationships, including India. Reuters reported that US and Indian officials were working towards a deal, though certain issues related to dairy and agriculture remained unresolved.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: "Nifty is likely to trade in the 25,200–25,800 range unless a major trigger emerges. A breakthrough could come from a formal announcement of the India-US trade deal."
India, US may ink interim trade deal in 48 hours, says report
2) Positive Global Cues: Asian markets were mostly higher. South Korea’s Kospi, Japan’s Nikkei 225 and Shanghai’s SSE Composite traded in the green, while Hong Kong’s Hang Seng was marginally lower. Wall Street ended mostly higher on Wednesday, and US futures pointed to a strong opening later in the day.
3) Falling Crude Prices: Global oil benchmark Brent crude dropped 0.77 percent to USD 68.58 per barrel. Lower crude prices are seen as positive for India, a major oil importer.
Technical View
Anand James, Chief Market Strategist at Geojit Financial Services, said the Nifty has reached the 25,440 level, a target set earlier in the week. "The trend appears supportive of further upside if the index breaks above 25,588. In that case, the 26,200–26,500 trajectory may come into play. On the downside, support remains at 25,300," he said.
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