- Indian markets rallied nearly 1% on Thursday, with the Nifty crossing 26,000 for the first time since September 2024.
- A mix of trade optimism, FII inflows, IT stock gains, and a stronger rupee drove markets higher.
- The analyst said a close above 26,300 could confirm a breakout toward the 26,800 levels.
Indian equity markets surged around 1% on Thursday, driven by optimism over a possible India–US trade deal, strong FII inflows, robust buying in IT stocks, and a stronger rupee.
At 11:11 am, the Sensex traded 648 points higher at 85,075, and the Nifty had climbed 148 points to 26,047. The Nifty index has scaled above 26,000 for the first time since September 2024.
What’s driving this bullish momentum?
SEBI-registered analyst Rohit Mehta shared four reasons behind the upmove.
Trade deal optimism: Reports suggest India and the US are close to finalizing a trade agreement that could lower tariffs to around 15–16%, which Mehta noted would be a big positive for Indian exporters. He added that a successful deal could further strengthen India’s export competitiveness, especially in sectors like textiles, engineering, and manufacturing.
Strong FII inflows continue: Foreign investors remained net buyers for the fifth straight session, signaling continued confidence in India’s growth story.
Steady foreign inflows, strong quarterly results, and festive liquidity are adding to the positive momentum. Mehta noted that a clear breakout above 26,300 could pave the way for new lifetime highs on Nifty.
IT stocks lead the charge: Technology shares were the top gainers today as global tech sentiment improved. A recent policy clarification from the US on H1B visas has eased concerns around visa-related costs, boosting the outlook for Indian tech companies. Nifty IT Index rallied over 2% in early trade.
Rupee strengthens against US Dollar: On Thursday, the rupee appreciated 13 paise to ₹87.80/USD, supported by strong domestic equities, improved risk appetite, and steady FII inflows. Mehta added that a stronger rupee further reinforces positive investor sentiment.
Nifty: Technical view
Mehta highlighted that the Nifty index continues to trade near the upper Bollinger Band, showing strong upward momentum. On the upside, he identified targets at 26,186 and 26,800, with support at 25,780.
Overall, the market trend remains positive, with dips likely to attract fresh buying interest. He concluded that momentum may extend if global cues remain supportive and trade deal progress continues.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<