Domestic equity markets began Thursday’s session on a strong footing as investors returned to buying after several weak sessions, encouraged by improving global cues and easing trade and geopolitical concerns. The S&P BSE Sensex climbed 785.92 points to 82,695.55, while the NSE Nifty50 gained 251.60 points to 25,409.10 by 9:46 am, reflecting broad-based buying across sectors.
The rally was primarily driven by relief in global markets after US President Donald Trump softened his stance on key geopolitical and trade issues. Trump ruled out the use of force to take control of Greenland and stepped back from plans to impose fresh tariffs on European allies, easing fears of a wider trade conflict. Wall Street rebounded overnight, Asian markets followed suit, and risk appetite improved globally.
Sentiment was further boosted by optimism around US-India trade ties after Trump indicated that the US is likely to strike a “good deal” with India. Expectations of progress on a bilateral trade agreement added to buying interest in Indian equities. Market experts also pointed to short-covering as a key factor behind the sharp early gains, with nearly two lakh short contracts in the system after recent declines.
Within the Sensex pack, Eternal led the gains, rising over 6%, followed by Mahindra & Mahindra, Adani Ports, UltraTech Cement, and Bharat Electronics. The rally was broad-based, extending beyond large caps, with the Nifty Midcap 100 and Nifty Smallcap 100 indices gaining over 1% each. Sectoral indices were uniformly higher, led by PSU banks, auto, media, pharma, and IT stocks. Market volatility eased, with India VIX falling more than 3%, indicating improved investor confidence.
Analysts said that while technical resistance levels remain, the formation of a consolidation pattern could support stability in the near term. Investors will now focus on key global economic data, including US GDP figures and Japan’s trade numbers, along with a busy domestic earnings calendar featuring companies such as InterGlobe Aviation, DLF, Bandhan Bank, and Adani group firms. The market’s next direction will depend on how global cues, earnings outcomes, and economic data shape sentiment through the session.
