Synopsis : Indian equity markets traded higher as optimism surged after the US signaled it would not impose fresh tariffs on European nations, easing global trade concerns. The Sensex added over 130 points while PSU bank stocks rallied sharply, pushing the Nifty close to the 25,250 mark.
Indian stock markets extended their recovery on Thursday, supported by positive global cues after US President Donald Trump announced that no tariffs would be imposed on European Union nations on February 1, following a framework agreement with NATO over Greenland. The development eased global trade tensions and boosted investor confidence across Asian markets.
By late morning, the benchmarks were off their day’s highs but continued to hold firm gains. The BSE Sensex was up nearly 128 points at around 82,037, while the NSE Nifty50 hovered close to 25,220, gaining about 62 points. Market sentiment remained constructive as buying interest expanded across most sectors.
PSU Banks Lead the Rally
Public sector banking stocks outperformed the broader market, with the Nifty PSU Bank index rising over 1.5%. Strong buying was seen in select PSU lenders, reflecting improved risk appetite and expectations of better credit growth and asset quality stability.
Among frontline stocks, Adani Ports, Bharat Electronics (BEL), and Tata Steel emerged as top gainers on the Sensex. On the downside, Eternal, HDFC Bank, and ICICI Bank weighed slightly on the index, limiting further upside.
Broader Markets Show Strength
The rally was more pronounced in the broader market. The Nifty MidCap 100 index climbed nearly 0.9%, while the Nifty SmallCap 100 index edged up around 0.3%. Stocks such as Waaree Energies, Premier Energies, Bank of India, IRB Infrastructure, Ashok Leyland, M&M Finance, MRPL, NCC, Anant Raj, Karur Vysya Bank, and KFin Technologies posted strong gains, reflecting renewed interest in mid- and small-cap counters.
Sectoral Performance
Most sectoral indices traded in positive territory. Apart from Nifty Realty and Nifty Private Bank, all sectors registered gains. Metals, infrastructure and banking stocks contributed meaningfully to the upside, reinforcing a broader risk-on mood.
Market Outlook
Analysts believe near-term sentiment could remain supported if global trade tensions continue to ease and macro stability persists. However, investors are advised to remain selective, as volatility may resurface amid geopolitical developments and upcoming economic data releases.
Disclaimer : This article is for informational purposes only and does not constitute investment or financial advice. Market investments carry risk, and readers should consult a qualified financial advisor before making any investment decisions.
