Indian Markets Rally as India–New Zealand Trade Deal Boosts Sentiment
MUMBAI — Indian equity markets closed higher, with benchmark indices ending near the day’s peak after investors reacted positively to the finalization of a free trade agreement between India and New Zealand.
The agreement, concluded in New Delhi in the presence of Commerce Minister Piyush Goyal and his New Zealand counterpart Todd McClay, eliminates tariffs on 100 percent of India’s exports to New Zealand and significantly reduces or removes tariffs on 95 percent of imports from New Zealand.
At the close, the Nifty rose 0.81 percent, or 194.75 points, to 24,092.70, while the Sensex gained 0.83 percent, or 639.42 points, to settle at 77,303.63.
Analysts said the Nifty faces key resistance in the 24,300–24,400 range, while 23,900 is seen as immediate support. A break below that level could push the index toward 23,800.
Among Sensex stocks, Adani Ports, Sun Pharma, NTPC, Tech Mahindra and Tata Steel led the gains. Axis Bank, Bharat Electronics Ltd., Trent and ICICI Bank were among the laggards.
Broader markets outperformed the benchmarks, with the Nifty MidCap index rising 1.55 percent and the Nifty SmallCap index climbing 1.96 percent.
Sectorally, gains were led by pharmaceutical, realty and information technology stocks, while private banking and financial services stocks lagged.
Investor sentiment was also supported by reports of a potential easing of tensions between Iran and the United States. Market participants cited indications that Iran may be open to reopening the strategically important Strait of Hormuz.
The Indian rupee traded slightly stronger at around 94.16 against the U.S. dollar, up 0.07 percent. Analysts expect the currency to remain in a range of 93.75 to 94.50 in the near term, with volatility likely to stay elevated. (Source: IANS)
