Sensex surged past 83,000, driven by positive US-India trade expectations and the IMF’s GDP upgrade. Experts see further upside if technical support holds.
Bulls are in control on Dalal Street as the Indian equity benchmarks advanced over 0.5% on Thursday, supported by firm global cues, strong banking sector momentum, and rate-cut hopes from the US Federal Reserve.
At 11:40 am, the Sensex was up 427 points, surging past 83,000, and the Nifty index was up 127 points at 22,447. Autos, real estate, and consumer durables lead the rally.
What’s driving the markets higher?
SEBI-registered analyst Rohit Mehta shared a whole host of factors at play, including progress on US-India trade talks, a stronger rupee, and FII buying.
Strong global cues: Asian markets traded higher following overnight gains on Wall Street. Indices in Japan, South Korea, and China opened strong as investors bet on a near-term Fed rate cut. The IMF’s upgrade of India’s FY26 GDP forecast to 6.6% added further optimism for domestic markets.
Banking stocks lead rally: Bank shares were the day’s star performers, helping the Bank Nifty rebound smartly from Wednesday’s weakness. Positive loan growth trends and reports of a possible public sector bank consolidation plan by FY27 lifted sentiment across the sector, according to Mehta.
Flows remain supportive: Foreign Institutional Investors (FIIs) were net buyers of ₹68.6 crore on Wednesday, while Domestic Institutional Investors (DIIs) were net buyers of ₹4,650 crore. Mehta added that sustained institutional inflows continue to support liquidity and rupee stability.
India–US trade talks: Investor mood was further lifted by expectations from the upcoming India–US trade discussions in Washington, with energy cooperation and trade expansion likely key focus areas.
Additionally, last night, US President Donald Trump claimed that Indian Prime Minister Narendra Modi has assured him that India would stop buying Russian oil “within a short period of time.”
Stronger rupee: The rupee appreciated 40 paise to 87.68 per US dollar in early trade, aided by central bank intervention, a softer dollar index, and easing crude oil prices.
Nifty: What are technical charts suggesting?
According to Mehta, Nifty closing above the 25,330 resistance zone shows underlying strength. He believes that a sustained move higher could open the way towards 25,500, while immediate support is near 25,260.
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