Sensex, Nifty Extend Rally For Second Day, Markets End With Modest Gains

Adding to the market’s unease, US President Donald Trump on Tuesday said trade talks between Washington and New Delhi are “working very well,” even as the threat of tariffs looms.

The Indian markets ended trading on Wednesday in the positive territory. The BSE Sensex settled at 81,482, jumping close to 150 points, and the NSE Nifty50 closed about 34 points higher and ended the session just above 24,850. 

While the benchmarks managed to close the session on a higher note, the gains remained modest. On the 30-share Sensex, L&T, Sun Pharma, NTPC, Maruti, and Bharti Airtel stood among the gainers, while the laggards included Tata Motors, PowerGrid, Bajaj Finserv, Kotak Mahindra Bank, and HUL.

In the broader markets, the Nifty Smallcap50 stood out in red and closed 0.67 per cent lower. Sectorally, the Realty index took the biggest hit and fell 0.96 per cent, while the IT index inched up 0.31 per cent.

Notably, the markets witnessed a choppy opening today morning, reflecting caution among investors amid global trade jitters. However, as the session progressed, both benchmarks continued to build on a positive momentum and rallied ahead. 

Adding to the market’s unease, US President Donald Trump on Tuesday said trade talks between Washington and New Delhi are “working very well,” even as the threat of tariffs looms. Trump, speaking aboard Air Force One, lashed out at India’s “very high” tariff regime and acknowledged reports of potential retaliatory duties of 20–25 per cent on American goods.

Earlier this year, Trump announced a 26 per cent tariff on select Indian products, later pausing those measures. With the August 1 deadline approaching, uncertainty over trade policy continues to weigh on investor sentiment.

Rupee Crashes 52 Paise Vs Dollar

The rupee fell sharply on Wednesday, sliding 52 paise to close at 87.43 (provisional) against the US dollar as jitters mounted over the fate of the India-US trade agreement. At the interbank foreign exchange, the domestic currency opened at 87.10 to the dollar, briefly touching an intra-day low of 87.05, before ending the session at 87.43 — a steep decline from the previous close. Dealers cited robust month-end dollar demand from importers and persistent foreign fund outflows as key factors adding pressure on the rupee.

“Indian rupee tanked sharply on uncertainty over the India-US trade deal after US President Donald Trump hinted at tariff rates of around 20-25 per cent ahead of the deadline of August 1,” said Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan. “We expect the rupee to slide further amid uncertainty over the trade deal between India and the US. Rising global oil prices and foreign outflows may also keep the rupee under the leash,” he added.

Adding to the currency’s woes, foreign institutional investors (FIIs) sold equities worth Rs 4,636.60 crore on a net basis on Tuesday, according to exchange data.

Analysts warn the rupee may remain under pressure in the coming sessions, with the trade talks outcome, global crude price trajectory, and sustained foreign outflows likely to dictate the domestic currency’s direction.

How Did Markets End Tuesday's Session?

The Indian stock market navigated a volatile Tuesday session, oscillating between gains and losses before closing on a strong note. Both benchmark indices opened in negative territory, but sentiment reversed swiftly as buyers stepped in, triggering a sustained recovery.

By mid-afternoon, the rebound gained strength and held through to the close. The Sensex climbed nearly 450 points to finish at 81,338, while the Nifty advanced almost 150 points, ending the day at 24,829.