MUMBAI— Indian equity markets surged on Tuesday, fueled by renewed India-US trade negotiations and expectations of a U.S. Federal Reserve rate cut.
The Sensex closed at 82,380.69, up 594.95 points, or 0.73 percent. The 30-share index opened modestly higher at 81,852.11, compared to the previous close of 81,785.74, before extending gains on the back of value buying across most sectors, excluding FMCG. The index hit an intraday high of 82,443.48.
The Nifty also posted strong gains, ending at 25,239.10, up 169.90 points, or 0.68 percent.
“The domestic market sustained its recovery trend, supported by favorable global cues on expectations of a 25 basis point rate cut in the forthcoming U.S. Fed policy decision and renewed optimism surrounding the resumed India-US trade negotiations. Auto and consumer durable stocks outperformed, ahead of the rollout of new GST rates and festive-driven demand expectations,” said Vinod Nair, Head of Research at Geojit Financial Services.
Looking ahead, analysts said investors will keep a close eye on trade discussions, while robust domestic macro fundamentals are expected to support earnings growth, maintain valuations, and limit downside risks.
Among Sensex constituents, Kotak Bank, Mahindra & Mahindra, L&T, Maruti Suzuki, Bharti Airtel, Tata Steel, Adani Airports, Axis Bank, HCL Tech, NTPC, TCS, BEL, SBI, Titan, Tech Mahindra, and PowerGrid all finished higher. Bajaj FinServ and Asian Paints were the day’s top laggards.
Sectoral indices largely closed in the green. Nifty Fin Services rose 102 points (0.39 percent), Nifty Bank climbed 259 points (0.47 percent), Nifty Auto jumped 385 points (1.44 percent), and Nifty IT gained 310 points (0.86 percent). Nifty FMCG bucked the trend and closed lower.
Broader markets followed suit. The Nifty Small Cap 100 advanced 171 points (0.95 percent), the Nifty Midcap 100 rose 313 points (0.54 percent), and the Nifty 100 gained 170 points (0.66 percent).
The rupee also strengthened, trading 0.13 percent higher at 88.05, bolstered by optimism over the Fed’s rate outlook and progress in India-US trade talks. (Source: IANS)
