Share Market In Green, Sensex Tests 76,350, Nifty Over 23,050. See Why Indices Are Rising

Both India and the US agreed to complete the first phase of a mutually beneficial ambitious trade agreement by this year and fixed a target of $500 million in annual bilateral trade by 2030.

The Indian equity markets began trading on Friday on a flat note. Around 9:37 AM, the BSE Sensex traded just under 76,200, inching up 50 points, while the NSE Nifty50 slipped merely 4 points to stand at 23,027.85.

However, as the session progressed, the benchmark indices continued to rally ahead in the session. At 10:09 AM, the Sensex traded just under 76,300, climbing more than 150 points, while the Nifty remained above 23,050, clocking a gain of almost 36 points. This rally was seen after the markets experienced a decline for seven days.

On the 30-share Sensex platform, Hindustan Unilever, ITC, Nestle, ICICI Bank, and HCL Tech emerged among the gainers in the day. Meanwhile, Adani Ports, Sun Pharma, UltraTech Cement, Zomato, and NTPC were the laggards in the session so far.

In the broader markets, the Nifty50 remained the only exception in green, while the Nifty Microcap 250 dominated in red and tanked 1.91 per cent.

Sectorally, the Midsmall Healthcare index tanked 2.19 per cent, followed by the Pharma index which stood lower by 2.06 per cent. On the other hand, the FMCG index climbed 0.90 per cent in the session.

What Is Driving The Markets Higher?

This positive sentiment in the markets could be attributed to PM Narendra Modi’s official visit to the US and investors gained confidence as the tariffs of US administration under President Donald Trump started taking shape. Further, both countries agreed to complete the first phase of a mutually beneficial ambitious trade agreement by this year and fixed a target of $500 million in annual bilateral trade by 2030.

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, noted, "Early indications from the Modi-Trump talks are positive from the market perspective. India's willingness to buy more oil & gas from the US can help reduce the trade deficit with the US. Even though Trump is unlikely to back down on reciprocal tariffs, India is treated as a friendly country and the bonhomie between the two leaders augurs well for India."

Macro Indicators

The Indian rupee appreciated 8 paise to 86.85 against the American dollar in early trade on Friday. This gain was backed by the US dollar retreating from higher levels and a positive trend seen in the domestic markets. Forex traders noted that the Indian currency remained under pressure as foreign fund outflows continued and crude oil prices increased.

The Foreign Institutional Investors (FIIs) continued their outflows and dumped Indian equities worth Rs 2,789.91 crore on Thursday, according to exchange data. The global oil benchmark Brent crude jumped 0.23 per cent to touch $75.19 a barrel.