Nifty surges 200 points, Sensex up 671 points; Here’s what’s fueling the market

Synopsis :- Indian markets surged, with Nifty up 200 points to 25,771 and Sensex rising 671 points to 83,486. Gains were driven by positive US developments, 1 percent higher Asian markets, and strong PSU Bank performance.

The indian stock markets turned bullish today due to a mix of positive domestic and global cues that have improved investor sentiment. Gains are typically driven by factors such as strong corporate earnings, supportive government policies, easing inflation concerns, stable interest rate expectations, or positive global market trends. When investors feel confident about economic growth and liquidity conditions, buying activity increases, pushing key indices higher.

Strong Opening on Dalal Street

Indian equity markets began the week on a firm note, with bulls returning to Dalal Street amid supportive global cues. The Nifty50 climbed to an intraday high of 25,771.45 from the previous closing level of 25,571.25, gaining 200.20 points in early trade. Similarly, the BSE Sensex surged to a day’s high of 83,486.15 compared to its previous close of 82,814.71, rising 671.44 points, reflecting strong buying momentum across the broader market.

The rally followed a positive close in US markets and encouraging signals from other Asian indices, which were also trading around 1 percent higher. Gift Nifty futures earlier indicated a strong start, trading at 25,744.5 compared to Friday’s Nifty close of 25,571.25.

Global Trade Developments

The primary trigger for the rally was the US Supreme Court’s decision to strike down tariffs imposed by President Donald Trump under a national emergency law, boosting global risk sentiment. However, Trump later announced an increase in temporary US import tariffs from 10 percent to 15 percent, creating some uncertainty around global trade. 

India has reportedly delayed sending its trade delegation to Washington amid the evolving scenario. Under a proposed interim framework, US tariffs on Indian goods could be reduced to 18 percent, while India may purchase $500 billion worth of US goods over five years. Meanwhile, oil prices eased ahead of fresh US-Iran nuclear talks in Geneva, reducing immediate geopolitical concerns.

Expert View

Dr VK Vijayakumar of Geojit Investments noted that while the US Supreme Court ruling is positive, it may only trigger a relief rally rather than a sustained uptrend. He emphasised that markets will ultimately respond to improving domestic fundamentals. Investors remain cautious as volatility could persist due to shifting trade policies and global developments. Export-linked sectors are likely to stay in focus as trade negotiations evolve.

Broad-Based Sectoral Gains

Buying interest was visible across most sectors. Nifty PSU Bank led gains, rising 1.87 percent to 9,846.80. While Nifty Auto gained 1.12 percent to 28,159.30. Realty, Metal, Private Bank, FMCG, Media, Healthcare, Pharma, Consumer Durables and Oil & Gas indices also traded in positive territory. Nifty IT remained almost flat but marginally positive. The rally was clearly broad-based, reflecting improving investor confidence.

What Is Driving the Market Today?

The surge in markets is primarily driven by improved global sentiment following the US court ruling on tariffs, along with optimism around potential India-US trade adjustments. Banking stocks have been supporting indices on expectations of stronger earnings, while easing crude oil prices have also aided sentiment. However, concerns around global trade tensions and geopolitical risks remain key variables that could influence market direction in the coming sessions.

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