Markets extend winning streak amid India-US trade talk optimism

Indian equity benchmarks gained on Thursday, with the benchmark Nifty 50 posting its longest winning streak since April 23, amid growing optimism that India and the US would reach a trade deal.

 

The Sensex gained for a fourth consecutive session to end at 81,549, up 124 points or 0.15 per cent. Nifty, on the other hand, rose for the seventh session to close at 25,006, up 32 points or 0.13 per cent.

 

Market capitalisation rose by ₹73,000 crore to ₹457 trillion.

 

Investor sentiment was lifted after US President Donald Trump said his administration is continuing negotiations to address trade barriers with India.

 

Trump's statement followed weeks of diplomatic friction after the US imposed a 50 per cent tariff on Indian imports, including a 25 per cent additional levy on India's imports of Russian oil.

 

The US had accused India of indirectly funding Russia's war in Ukraine.

 

The recent Goods and Services Tax (GST) rate cuts, aimed at stimulating consumption, further lifted sentiments.

 

"We expect this gradual uptick in the market to continue, supported by the government's GST reforms, expectations of a US Fed rate cut, and improving sentiment around US–India trade talks," said Siddhartha Khemka, head of research, wealth management, Motilal Oswal Financial Services.

 

Market breadth was weak, with 2,103 stocks declining and 2,019 advancing.

 

Bharti Airtel, which rose 1.2 per cent, contributed the most to Sensex’s gains, while Infosys, down 1.5 per cent, dragged as the worst-performing stock

 

Foreign Portfolio Investors (FPIs) were net sellers worth ₹3,472 crore, while domestic institutions were net buyers worth ₹ 4,045 crore.

 

Nifty reclaims 25k

 

The benchmark Nifty 50 closed above the 25,000 mark for the first time since August 21 at 25,005.50, up 32 points, or 0.13 per cent.

 

However, the gains this time were much more modest compared to the previous long rally. Between April 11 and April 23, the Nifty had surged 8.6 per cent, but gained only 1.73 per cent during the current streak.

 

"Going ahead, the zone of 25,080–25,100 will act as an immediate hurdle for the index. Any sustainable move above the 25,100 level could trigger a sharp upside rally up to 25,240. On the downside, the 24,900–24,870 zone will act as crucial support for the index," said Sudeep Shah, head – technical research and derivatives, SBI Securities.