MUMBAI– Indian equities surged on Tuesday as renewed optimism over India-U.S. trade talks and growing expectations of a U.S. Federal Reserve rate cut fueled a broad-based rally across sectors.
The benchmark Sensex climbed 594.95 points, or 0.73 percent, to close at 82,380.69. The 30-share index opened slightly higher at 81,852.11 and extended gains throughout the session, touching an intraday high of 82,443.48. The Nifty 50 also advanced, ending at 25,239.10, up 169.90 points, or 0.68 percent.
“Markets sustained their recovery trend, supported by favorable global cues on expectations of a 25 basis point cut in the upcoming Fed policy decision and renewed optimism around resumed India-U.S. trade negotiations,” said Vinod Nair, Head of Research at Geojit Financial Services. He noted that auto and consumer durables led the rally, buoyed by festive demand expectations and recent GST rate revisions.
Among the Sensex heavyweights, Kotak Bank, Mahindra & Mahindra, Larsen & Toubro, Maruti Suzuki, Bharti Airtel, Tata Steel, Axis Bank, HCL Tech, NTPC, TCS, State Bank of India, and PowerGrid closed with strong gains. Bajaj Finserv and Asian Paints were the top laggards.
Sectoral indices were largely in the green, with Nifty Auto soaring 1.44 percent, Nifty IT up 0.86 percent, and Nifty Bank rising 0.47 percent. Nifty FMCG was the only major index to close lower.
Broader markets also mirrored the positive sentiment. Nifty Small Cap 100 gained 0.95 percent, Nifty Midcap 100 rose 0.54 percent, and Nifty 100 advanced 0.66 percent.
The rupee strengthened as well, trading 0.13 percent higher at 88.05, supported by Fed rate cut expectations and the upbeat outlook for trade negotiations.
Investor attention is expected to remain focused on the outcome of U.S.-India trade talks, while strong domestic fundamentals are seen driving upward earnings revisions and cushioning downside risks. (Source: IANS)
