MUMBAI: Benchmark indices Sensex and Nifty rallied for the fourth consecutive session on Thursday, rising nearly 2 per cent as investor sentiment improved following renewed foreign inflows and hopes of a breakthrough in US-Japan trade negotiations over reciprocal tariffs.
The 30-share BSE Sensex jumped 1,508.91 points or 1.96 per cent to close at 78,553.20, reclaiming the 78,000 level. During the day, it surged 1,572.48 points or 2.04 per cent to hit a high of 78,616.77. The broader NSE Nifty climbed 414.45 points or 1.77 per cent to settle at 23,851.65.
Among the top gainers on the Sensex were Eternal, ICICI Bank, Bharti Airtel, Sun Pharma, State Bank of India, Bajaj Finserv, Kotak Mahindra Bank and Reliance Industries. Tech Mahindra and Maruti were the only laggards.
Foreign Institutional Investors (FIIs) continued their buying streak, pumping in Rs3,936.42 crore into domestic equities on Wednesday, following Rs6,065.78 crore worth of purchases on Tuesday, according to exchange data.
Asian markets also traded higher, with indices such as South Korea’s Kospi, Tokyo’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng all closing in positive territory.
However, European markets were trading lower in early sessions, while US markets ended significantly lower on Wednesday.
US-Japan trade talks
The ongoing US-Japan trade talks aimed at resolving reciprocal tariff issues have fuelled optimism among investors, as the two allies push toward an agreement.
Market experts believe this could ease tensions in broader trade dynamics, even as US-China tariff concerns continue to loom.
A strong rally in large-cap stocks was observed today, primarily driven by financials, amid expectations of improved margins stemming from changes in savings deposit interest rates. Positive sentiment was further supported by a reversal in FII flows, although the sustainability of this trend remains uncertain.
“Optimism surrounding the domestic market persists, bolstered by the expectation of a favourable outcome from US-India trade negotiations and a relatively minimal disruption from the US-China trade tensions. Additionally, a moderating inflation trajectory towards more comfortable levels is further enhancing market sentiment,” said Vinod Nair, Head of Research at Geojit Financial Services.
Meanwhile, global oil benchmark Brent crude rose 0.94 per cent to $66.47 per barrel.
On Wednesday, defying a mixed global trend, the BSE Sensex had gained 309.40 points or 0.40 per cent to close at 77,044.29, while the NSE Nifty advanced 108.65 points or 0.47 per cent to settle at 23,437.20.
Indian stock markets will remain closed on Friday on account of Good Friday.
