It was another day of gains for the Indian stock market as bulls continued to dominate Dalal Street, pushing both benchmark indices to their sixth consecutive positive close.
Though traders booked profits at higher levels, the Nifty 50 and Sensex still managed to end in the green.
A notable trend in the recent rally has been the change in sectoral rotation, with different sectors taking turns to lead. Today, pharma stocks drove the gains, while FMCG, auto, and consumer durables-which had supported the rally earlier-saw some profit booking.
The Nifty 50 ended with a marginal gain of 0.13% at 25,083, while the Sensex advanced 0.17% to 82,000. The broader markets, however, failed to maintain their upward trend, with both the Nifty Midcap 100 and Nifty Smallcap 100 closing with mild losses.
Optimism in the Indian stock market has been fueled by the government’s plan to cut GST rates across key categories, which continues to support the rally despite near-term headwinds such as the fast-approaching deadline for an additional 25% US tariff hike.
However, the proposed GST rationalisation has so far failed to shift the sentiment of overseas investors, who continue to offload shares through the exchanges. Analysts believe that a reversal in sentiment among foreign investors may only emerge once tariff tensions between India and the US ease.
Meanwhile, Evgeniy Griva, Russia’s Deputy Trade Representative to India, reportedly announced a 5% discount on Russian crude oil for India, subject to negotiation. The discount, offered in the wake of US tariffs and sanctions, is aimed at maintaining stable supplies, as India currently imports 36-40% of its crude oil from Russia.