Synopsis: Indian stock markets opened on a strong note Wednesday, lifted by optimism over a potential India-US trade agreement and Bihar exit polls favoring the NDA. Both Sensex and Nifty registered healthy early gains as investors cheered positive global cues and robust domestic fundamentals.
The Indian equity market kicked off Wednesday’s session in the green, driven by renewed investor confidence amid reports of an imminent India-US trade deal and Bihar exit polls hinting at a decisive NDA victory.
As of 9:25 am, the BSE Sensex rose 496 points (0.59%) to 84,367, while the NSE Nifty climbed 147 points (0.58%) to 25,842. Broader market indices mirrored the upbeat sentiment — the Nifty Midcap 100 gained 0.55%, and the Nifty Smallcap 100 added 0.61%, indicating broad-based participation.
Among the top performers on the Nifty pack were Max Healthcare and Tech Mahindra, while Maruti Suzuki and Trent lagged behind. All sectoral indices traded in the green except Nifty FMCG, which showed mild weakness. Nifty IT and Nifty Oil & Gas were standout gainers, rising 1.26% and 0.95%, respectively.
Market analysts said the twin catalysts — a likely India-US trade pact and political stability in Bihar — have boosted sentiment but cautioned that the rally may face resistance at higher levels. “While these developments strengthen the bulls, they may not be sufficient for a decisive breakout unless institutional flows turn supportive,” experts noted.
Foreign Institutional Investors (FIIs) sold equities worth ?803 crore on Monday, while Domestic Institutional Investors (DIIs) bought shares worth ?2,188 crore, reflecting strong domestic support.
From a fundamentals perspective, analysts remain optimistic about India’s growth trajectory. Strong GDP growth, coupled with positive earnings prospects for FY27, suggests that financials, consumption, and defence sectors could spearhead the next leg of the market’s rally.
Globally, Asian markets mirrored the positive tone. Hong Kong’s Hang Seng gained 0.56%, South Korea’s Kospi jumped 0.84%, while Japan’s Nikkei and China’s Shanghai indices dipped marginally. On Wall Street, sentiment was mixed, with the Nasdaq down 0.3%, the S&P 500 inching up 0.18%, and the Dow Jones climbing 1.2% amid hopes of a resolution to the US government shutdown.
As the trading day unfolds, all eyes remain on trade negotiations and global cues, which could dictate short-term direction. For now, the bulls seem to be firmly in control.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Investors are advised to consult certified professionals before making any investment decisions.
