Calm Tested, Confidence Restored
The Indian share market has been nothing short of a roller coaster in recent months—swinging between optimism and anxiety, testing even the most seasoned investors’ patience. Uncertain global cues, shifting interest rate expectations, and geopolitical frictions have kept traders on edge. But Thursday brought a welcome change of tone. Renewed confidence swept through Dalal Street as benchmark indices staged a remarkable rally, buoyed by upbeat cues around a potential India–US trade breakthrough and strong performance in the technology sector.
Markets Ignite: Indices Scale New Heights
The Nifty 50 reclaimed the 26,000 mark for the first time since September 2024, opening 188.6 points higher at 26,057.20, a 0.73% gain. The BSE Sensex too surged 727.81 points to 85,154.15, inching closer to its all-time peak of 85,478.25. Investors cheered reports of renewed diplomatic momentum between New Delhi and Washington, which many see as a potential catalyst for export-led growth.
Analysts credited this surge to a combination of factors: firm foreign institutional investor (FII) inflows, improving global liquidity, and consistent buying in information technology (IT) counters. Optimism was further fueled by expectations that US tariffs on Indian exports could soon be reduced significantly, easing trade barriers and boosting profitability for several sectors.
IT Stocks Take the Lead
Technology shares were the clear stars of the session. The Nifty IT index jumped nearly 1.9%, leading the market advance. Infosys, HCLTech, and Tech Mahindra witnessed robust demand, gaining up to 3%. Investors also reacted positively to Infosys’ proposed ₹18,000-crore buyback program—a strong signal of confidence in its future growth.
Beyond IT, FMCG and private banking shares lent further strength. Hindustan Unilever, Axis Bank, and ICICI Bank recorded steady advances, reflecting improving domestic sentiment. However, auto stocks remained mixed, as post-festive demand moderated and sectoral outlooks stayed cautious.
Market Breadth and Capitalization Surge
The rally wasn’t confined to large-caps. The Nifty Midcap 100 and SmallCap 100 indices climbed 0.44% and 0.33%, respectively, underscoring broad-based participation. On the BSE, over 1,900 stocks advanced compared to 1,393 declines, illustrating the market’s robust breadth.
Investors’ wealth has soared by nearly ₹12.8 lakh crore in the past week, pushing the total market capitalization of BSE-listed companies to ₹473.33 lakh crore—a remarkable turnaround that has recouped nearly all the losses from the previous quarter’s correction.
Trade Deal Optimism Drives Sentiment
The buzz surrounding an imminent India–US trade deal was the defining theme of the day. Sources suggest the agreement could include significant tariff reductions—potentially bringing duties on Indian exports down to the 15–16% range. Such a development would be particularly favorable for India’s textile, agricultural, and technology industries.
Market strategist Dr. V.K. Vijayakumar noted that the proposed structure could be “transformative for exporters,” with technology firms likely to emerge as the biggest beneficiaries. His sentiment was echoed by traders, who see this potential deal as a strong foundation for sustained equity market growth.
Global Picture and Technical Outlook
Despite the cheer at home, global markets presented a mixed picture. US indices faltered amid lingering political gridlock and tariff uncertainties, while most Asian markets ended lower. Yet, Indian equities remained resilient, backed by steady FII buying for the fifth straight session and favourable domestic fundamentals. Technically, analysts see Nifty’s resistance around 26,186 and support at 25,780, with no immediate signs of a reversal.
Renewed Faith Amid Uncertainty
Thursday’s upsurge marks a decisive return of confidence on Dalal Street. Investors appear ready to look beyond short-term global volatility, focusing instead on India’s structural growth story. With trade negotiations nearing conclusion, inflation moderating, and corporate earnings stabilizing, the mood has shifted from caution to conviction.
While volatility may still test patience, the underlying message is clear—India’s equity markets are regaining their rhythm, powered by policy optimism, solid fundamentals, and the quiet resurgence of investor trust.
(With agency inputs)
