Indian Stock Market Rides High on Trade Optimism and Global Gains

Indian stock markets opened higher on Wednesday due to optimism surrounding a potential India-US trade deal, sustained foreign investment, and positive economic trends. BSE Sensex and Nifty saw notable gains, with strong performances globally boosting bullish sentiment, despite local tensions affecting investor mood.

Indian stock markets surged on Wednesday, fueled by optimism regarding a potential bilateral trade deal between India and the United States, alongside continuous foreign investment and positive economic signals. The BSE Sensex recorded a jump of 468.75 points, reaching 80,064.34, while the Nifty rose by 136.25 points, touching 24,303.50 at the start of trading.

During the opening hour, shares of approximately 1,694 companies advanced, 459 declined, and 131 remained unchanged. Despite the overall positive sentiment, the recent terrorist attack on tourists in Kashmir has cast a shadow, with expectations of market volatility due to potential retaliatory actions by Indian security forces, noted Ajay Bagga, a market and banking expert.

The optimism in the Indian markets is driven by US trade developments and sentiment recovery, although investors are advised to remain cautious as market movements are more aligned with statements from US officials rather than global fundamentals, according to Akshay Chinchalkar, Head of Research at Axis Securities.

Chinchalkar also highlighted that the bullish sentiment is backed by the fact that over 80% of NSE500 stocks are above their 50-day average, the highest since June, with options expiring soon suggesting a positive market outlook for the next two sessions. Robust performances were seen globally as well, with the Dow, S&P 500, and Nasdaq all recording substantial gains. Commodity markets showed mixed trends, with gold prices declining and crude prices rising amidst concerns over Iran sanctions and declining US inventories.

(With inputs from agencies.)