Sensex surges 400 pts, Nifty nears 25,200 as India-US trade talks fuel optimism

On the sectoral front, Nifty Auto continued to lead, closely followed by Bank Nifty, Nifty IT, and Nifty Realty, all of which gained between 0.2 and 0.8 percent. The broader markets also remained buoyant, with the Nifty Smallcap 100 emerging as the outperformer.

Global cues remained in sharp focus with traders awaiting the US Federal Reserve’s policy decision later tonight. Markets widely expect a 25 basis point rate cut, but the tone of the Fed’s forward guidance is seen as the real trigger for global equities.

Ankita Pathak, Macro Strategist and Global Equities Fund Advisor at Ionic Asset, noted that investor attention will be firmly fixed on the Fed’s commentary.

“An unexpectedly dovish guidance could spark a melt-up in US equities and extend benefits to relatively cheaper emerging markets such as China and Korea. Conversely, a hawkish tone with limited room for further policy action could trigger a classic ‘sell-on-news’ trade in US markets. Back home, foreign institutional inflows will remain key, supported by a softer dollar, corporate earnings momentum, and upcoming RBI policy cues,” she said.

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