Dalal Street Pins Hopes On India-US Trade Talks, Sensex Ends About 600 Points Higher
This renewed sentiment in the markets was backed by optimism surrounding the trade deal negotiations between India and the US, scheduled to resume today.
Dalal Street witnessed a recovery on Tuesday. Both benchmark indices, Sensex and Nifty, rallied ahead today to make up for the losses incurred in the previous trading session.
The BSE Sensex settled the session at 82,381, soaring almost 600 points, while the NSE Nifty50 closed trading above 25,250, climbing close to 200 points.
On the 30-share Sensex, Kotak Bank, L&T, M&M, Maruti, and Bharti Airtel stood among the gainers. Meanwhile, the laggards included Asian Paints and Bajaj Finance.
In the broader markets, the Nifty Smallcap100 dominated with gains of 0.95 per cent. Sectorally, the Auto index led across the board after it climbed 1.44 per cent. On the other hand, the PSU Bank index slipped 0.27 per cent.
"The rally was driven by strong gains in auto, realty, and financial stocks, as optimism grew around ongoing India-US trade talks and expectations of a US Federal Reserve rate cut later this week," noted Gaurav Garg, Research Analyst, Lemonn Markets Desk.
US-India Trade Talks Uplift Domestic Markets
This renewed sentiment in the markets was backed by optimism surrounding the trade deal negotiations between India and the US, scheduled to resume today. Chief US negotiator Brendan Lynch arrived in New Delhi to lead the discussions, fuelling hopes of progress.
Notably, in morning market hours, the Sensex was up 184 points, or 0.23 per cent, at 81,970, while the Nifty advanced 47 points, or 0.19 per cent, to trade at 25,117, around 9:25 AM.
"The domestic market sustained its recovery trend, supported by favourable global cues on expectations of a 25 bps rate cut in the forthcoming US Fed policy decision and renewed optimism surrounding the resumed India-US trade negotiations. Auto and consumer durable stocks outperformed, ahead of the rollout of new GST rates and festive-driven demand expectations," explained Vinod Nair, Head of Research, Geojit Investments Limited.
Markets in the US are currently factoring in a 96.4 per cent probability of a 25-basis-point rate cut at the Federal Reserve’s September 17 meeting, with expectations of further easing before year-end. Meanwhile, foreign institutional investors sold equities worth Rs 1,268 crore on Monday, while domestic institutional investors were net buyers with inflows of Rs 1,933 crore.
Related Video
BREAKING NOW: Indore fire tragedy as EV short circuit triggers deadly explosions
Top Headlines
