Indian Equities Surge as Hopes Mount for India-US Trade Deal

Indian stock markets rose for a second consecutive day on optimism regarding a potential India-US trade agreement. Sensex and Nifty showed gains amid favorable US market trends. Investors await updates on trade negotiations and the RBI's monetary policy decision. Continued foreign investments and easing US Treasury yields were noted.

Indian stock indices experienced a continued upward trajectory for the second consecutive day, largely driven by optimism surrounding a potential India-US trade deal, as hinted by US Commerce Secretary. Strong performances by US stock indices also positively impacted Indian benchmarks.

On the trading floor, the Sensex concluded at 81,442.04 points, marking an increase of 443.79 points or 0.55%, while the Nifty closed at 24,750.90 points, up by 130.70 points or 0.53%. Leading sectoral movers included Nifty IT, Nifty metal, and Nifty pharma, while the laggards were Nifty Media, Nifty PSU Bank, and Nifty Private Bank. Concurrently, global gold prices remained favorable, with per ounce quotations at USD 3,416, an uptick of 0.5%.

Looking ahead, market participants are keenly anticipating the results of the India-US trade talks and upcoming RBI monetary policy announcements. Sundar Kewat, Technical and Derivatives Analyst at Ashika Institutional Equity, notes that market volatility is likely to persist until more information becomes available. Meanwhile, easing US Treasury yields and a softer US dollar added a layer of support for Indian equities amidst global uncertainties caused by US-China trade tensions.

VK Vijayakumar of Geojit Investments Limited suggests a 'buy on dips' approach in light of anticipated rate adjustments by the RBI on June 8. Despite global market volatility, Indian indices have continued to outperform, aided by steady inflation figures. In 2024, the Sensex and Nifty have witnessed growth rates of 9-10%, following a 16-17% gain in 2023 and a modest 3% increase in 2022, according to recent figures.

(With inputs from agencies.)