Sensex soars 450 pts from day's low, Nifty above 25,200: US-China trade talks optimism, other key factors behind market rise

Sensex, Nifty climbed following a rally in global markets amid US-China trade talks optimism and foreign fund inflows.

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26 Aug, 2025 12:21

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The equity benchmarks rebounded sharply on Wednesday, with the Sensex rising 450 points from the day’s low and the Nifty crossing the 25,200-mark intraday, tracking gains in Asian markets and positive cues from the US-China trade front.

The Sensex touched an intraday high of 82,746.56, recovering significantly from early weakness. The broader Nifty also climbed past the 25,200 level to 25,220.40.

Heavyweights such as Reliance Industries, Mahindra & Mahindra, Tata Motors, NTPC and Tata Steel were among the top gainers, lending support to the market.

Here are the key factors behind Wednesday’s market rise

1) US-China Trade Talks Optimism: Investor sentiment was boosted after officials from the US and China said they had agreed on a framework to put their trade discussions back on track. The two sides committed to lifting certain export restrictions. The announcement followed two days of talks in London.

"The market is likely to continue in a consolidation range with a slight upward bias," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. "A breakout above the Nifty 25,100 level could be sustained if supported by strong buying and positive developments on the US-China trade front."

2) FII Buying Continues: Foreign portfolio investors (FPIs) remained net buyers for the fifth straight session, infusing Rs 2,301.87 crore in the previous trading day. Analysts attributed the continued inflows to the Reserve Bank of India’s recent 50-basis-point repo rate cut, which is expected to support credit growth and bank margins.

3) Asian Markets Gain: Major Asian indices including South Korea’s Kospi, Japan’s Nikkei 225, China’s SSE Composite, and Hong Kong’s Hang Seng traded in the green. Overnight gains on Wall Street also lifted sentiment in regional markets.

4) Rupee Strengthens: The Indian rupee appreciated by 6 paise to 85.51 against the US dollar in early trade, aided by foreign inflows and a decline in crude oil prices.

5) Crude Prices Ease: Brent crude, the global oil benchmark, fell 0.16 percent to USD 66.76 a barrel, providing relief to oil-importing countries like India.

6) Buying in Index Majors: Reliance Industries rose nearly 2 percent, emerging as the second-best performer in the Nifty50 pack, just behind ONGC. The stock’s gains provided key support to the index.

Technical View

"Markets could target the 25,235–25,460 range as long as dips remain above 25,068," said Anand James, Chief Market Strategist, Geojit Financial Services. "A decline below 24,900–24,863 may suggest weakness, though we would wait for a breach of 24,640 to confirm a shift in trend."

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.