The equity benchmark indices settler higher on Wednesday, buoyed by positive global cues and optimism over trade negotiations between India and the United States.
Sensex climbed 323.83 points or 0.40 percent to settle at 81,425.15, registering its third straight day of gain. During the day, it jumped 542.56 points or 0.66 percent to 81,643.88. Nifty rallied for the sixth straight session by 104.50 points or 0.42 percent to 24,973.10.
IT counters led the uptrend, with HCL Tech, Tata Consultancy Services, Tech Mahindra, Infosys, Larsen & Toubro and Kotak Mahindra Bank among the major gainers.
1) Optimism over India-US trade talks: Investor sentiment was lifted after US President Donald Trump said he was "certain" there would be "no difficulty" in reaching a "successful conclusion" to trade talks with India. In a post on Truth Social, Trump said he looked forward to speaking with Prime Minister Narendra Modi "in the upcoming weeks". Prime Minister Modi, in a post on X, responded that the talks would help unlock the partnership’s potential.
"President Trump’s initiative to improve India-US relations and PM Modi’s positive response are major positives for the market today," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
2) Strong global cues: Global markets also provided support. Asian indices including South Korea’s Kospi, Japan’s Nikkei, Shanghai Composite and Hong Kong’s Hang Seng traded in the green. On Tuesday, Wall Street closed higher.
3) FIIs turn buyers: On the domestic front, foreign institutional investors turned buyers, purchasing equities worth Rs 2,050.46 crore on Tuesday.
4) Buying in IT shares: IT stocks gained up to 7 percent as expectations of a US Federal Reserve rate cut strengthened following weak labour market data. The Nifty IT index climbed 2.5 percent.
5) Rupee rises: The rupee appreciated 5 paise to 88.10 against the US dollar in early trade, aided by foreign fund inflows and a weaker greenback, though higher crude prices capped gains.
Technical Analysis
Anand James, Chief Market Strategist at Geojit Financial Services, said: "The 24,870 region continued to resist upside attempts, but oscillators point towards more upsides. The upside objective may be extended to 25,400. Alternatively, inability to push beyond 25,100, or a fall below 24,700, could delay the maturity of upsides."
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.
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