Sensex, Nifty Rally On Trade Talk Optimism

(RTTNews) - Indian shares rallied on Thursday after reports suggested that talks on a bilateral trade agreement between India and the United States have picked up pace.

An Indian team will be visiting the United States this week to discuss issues aimed at boosting trade and removing tariff barriers between the two countries.

In a TV interview on Tuesday, U.S. Secretary of the Treasury Scott Bessent framed China's new export controls on critical minerals as "China versus the rest of the world", adding the U.S. expects strong support from Europe, India and other Asian democracies.

Surging bets over a Federal Reserve rate cut also boosted investor sentiment and helped offset rising Sino-U.S. tensions.

Markets are currently pricing in a 25-basis point Fed rate cut at the Oct. 28-29 policy meeting, with another cut expected in December.

Meanwhile, after U.S. President Donald Trump spoke about India planning to gradually reduce its Russian oil imports, the Ministry of External Affairs (MEA) reiterated that India's energy imports are driven solely by the goal of protecting the interests of Indian consumers amid global energy volatility.

The benchmark BSE Sensex jumped 862.23 points, or 1.04 percent, to 83,467.66, fueled by optimism over a domestic earnings' rebound and fresh foreign capital inflows.

The broader NSE Nifty index soared 261.75 points, or 1.03 percent, to 25,585.30 while the BSE mid-cap and small-cap indexes posted modest gains, rising 0.3 percent and half a percent, respectively.

The market breadth was strong on the BSE, with 2,377 shares rising while 1,810 shares declined and 147 shares closed unchanged.

Among the top gainers, Hindustan Unilever, HDFC Bank, Tata Motors, Reliance Industries, Mahindra & Mahindra, Adani Ports, Axis Bank, Titan Company and Kotak Mahindra Bank surged 2-3 percent.

With the Reserve Bank of India (RBI) playing a key role in curbing speculation and discouraging short positions on the rupee, the domestic currency closed 24 paise higher at a near one-month high of 87.82 against the greenback.

Globally, Asian markets extended gains from the previous session amid growing expectations of imminent U.S. Federal Reserve rate cuts. European stocks were mixed in early trade.

The dollar dropped as the U.S. Senate failed again to advance a House-passed measure to fund the government and Federal Reserve Chair Jerome Powell highlighted risks to the labor market.

Gold scaled another record peak above $4.200 an ounce after gaining more than 1.5 percent in the previous session. Oil prices were higher after Trump's comments on India's Russian oil purchase.