On Thursday morning, the Indian equity markets opened with renewed vigour, marked by a sharp uptick in the benchmark indices. The 30-share BSE Sensex surged by 734.36 points to reach approximately 85,160.70 in early trade, and the 50-share NSE Nifty 50 climbed by around 198.30 points to 26,066.90.
At the heart of this movement lies a confluence of favourable domestic and global cues. One of the most prominent drivers is growing optimism surrounding a potential trade deal between India and the United States. Market participants appear to be factoring in that such an agreement would bolster India’s export prospects, lift investor sentiment and thereby act as a catalyst for broader equity market gains.
Complementing this is the inflow of foreign institutional investor (FII) funds and strong early-session buying in technology and banking counters. For example, stocks such as Infosys, HCL Tech, Tech Mahindra, Axis Bank, Kotak Mahindra Bank and Hindustan Unilever were among the early gainers.
From a broader viewpoint, this uptick also reflects festive‐season confidence. With the Indian economy entering a phase of elevated consumption demand and corporate earnings expectations beginning to firm up, investors are leaning into equities in anticipation of better outcomes in the coming quarters. One strategist noted that “unprecedented record sales during the last few days has the potential to improve corporate earnings”.
Nevertheless, it is prudent to temper the excitement with a note of caution. While the early session looked robust, intraday volatility and profit‐taking remain real possibilities as the market navigates through a number of variables. For instance, one report noted that after such a sharp jump, part of the gains were pared later in the day, highlighting the need for investors to remain vigilant.
In conclusion, Thursday’s strong opening on the Dalal Street underscores that investor sentiment is currently tilted in favour of the bulls: supported by global trade optimism, foreign buying and domestic structural strength. If sustained, this move could pave the way for the Nifty to scale new record highs. That said, the sustainability of the rally will depend on how earnings evolve, how the US-India trade talks materialise, and how global macro conditions shape up. As always, in the equities world, the upside potential comes with attendant risks.