 "DII flows, Trump-Putin summit hopes help markets duck tariff blow")
Domestic markets recovered from their three-month lows to close higher on Thursday, buoyed up by strong buying from domestic institutional investors (DIIs) and optimism over an upcoming summit between US President Donald Trump and Russian President Vladimir Putin.
The US’ move to double tariffs on Indian goods, a response to India’s continued purchase of Russian energy, soured investor sentiment.
The Sensex fell nearly a per cent during the day, touching 79,811 — its lowest level since May 9. However, it rebounded to close at 80,623, gaining 79 points (or 0.1 per cent). The Nifty similarly dropped to a three-month low of 24,344 before recouping all the losses to end at 24,596, up 22 points (0.09 per cent).
The total market capitalisation of BSE-listed companies rose by ₹16,000 crore to ₹445.4 trillion.
The gains were underpinned by DIIs, who pumped ₹10,864 crore into domestic stocks — their highest single-day buying since April 7.
Conversely, foreign portfolio investors (FPIs) sold shares worth ₹4,997 crore.
Russia announced it had agreed with the US on a venue for the Putin-Trump meeting and had begun discussions on key issues, following a recent interaction between Putin and Trump’s envoy Steve Witkoff.
Most global markets also rallied as the Kremlin’s confirmation raised hopes for a possible truce in the Russia-Ukraine conflict and possibly a softening of Trump’s tough stance on buyers of Russian energy, such as India.
The US views these purchases as supportive of the Russian economy, which delays efforts to end the war, now entering its fourth year.
On Tuesday, Trump accused India of fanning Russia’s war efforts and imposed an additional 25 per cent tariff, escalating trade tensions after months of negotiations.
The tariffs come ahead of an August 8 deadline Trump set for Russia to reach a peace agreement with Ukraine.
“Optimism around a potential India-US trade settlement is boosting sentiment, with a 20-day window still open for negotiations. We expect the market to stay rangebound, closely tracking developments on the US-Russia peace talks, India’s response to US tariffs, and the domestic earnings outlook,” said Siddhartha Khemka, head of research, wealth management, Motilal Oswal Financial Services.
Market breadth was weak, with 2,297 stocks declining and 1,751 advancing on the BSE. HDFC Bank, up 0.6 per cent, was the top contributor to the Sensex’s gains, followed by Eternal, which rose 0.9 per cent.
Brent crude traded higher at $68.2 per barrel, gaining 0.6 per cent.
“Nifty managed to hold above the 24,450 support level at close, reaffirming its strength as a key floor — the lower boundary of the previous consolidation range that led to the rally. A decisive move above 24,800 could pave the way for a further rebound toward the 25,000 mark,” said Ajit Mishra, senior vice-president of research, Religare Broking.
Gold prices hit record high
Gold prices rallied ₹3,600 to hit a record high of ₹1,02,620 per 10 grams in the national capital on Thursday as investors turned to safe-haven assets after the US administration announced a 25 per cent additional tariff on Indian imports. According to the All India Sarafa Association, gold of 99.9 per cent purity had closed at ₹99,020 per 10 grams on Wednesday. In the national capital, gold of 99.5 per cent purity rallied by ₹3,600 to hit a lifetime high of ₹1,02,200 per 10 grams on Thursday.
Global stocks edge up
Global equities rose on Thursday, with Japanese shares hitting a record high. Europe’s Stoxx 600 rose 1 per cent, with major indices in Frankfurt and Paris up 1.7 per cent and 1.3 per cent, respectively. US S&P 500 futures rose 0.7 per cent. Japan’s broad Topix index rose 0.7 per cent to a record closing high, with the more tech-focused Nikkei also gaining by about the same.While Korea’s KOSPI added 0.9 per cent, Hong Kong’s Hang Seng rose 0.7 per cent.