Key indices rally amid US trade talk optimism

Nifty extended its bullish momentum today, opening positive and holding firm within the 25,300 zone throughout the session, reflecting strong underlying sentiment. The next big trigger will come from the US Federal Reserve’s rate decision tonight, where a rate cut is widely expected - Hariprasad K, Research Analyst and Founder - Livelong Wealth

Mumbai: Benchmark indices Sensex and Nifty rose for the second day on Wednesday on buying in IT, banking, and auto shares by investors enthused by positive day-long discussions with the visiting US team on a bilateral trade deal.

The 30-share BSE Sensex edged higher by 313.02 points or 0.38 per cent to settle at 82,693.71. During the day, it jumped 361.26 points or 0.43 per cent to 82,741.95. The 50-share NSE Nifty climbed 91.15 points or 0.36 per cent to 25,330.25.

Growing expectations of a rate cut by the US Federal Reserve and positive US-India discussions on a proposed trade deal helped stock markets extend their rally, analysts said.

Among Sensex firms, State Bank of India, Bharat Electronics, Kotak Mahindra Bank, Maruti, Trent and UltraTech Cement were the major gainers. However, Bajaj Finserv, Titan, ITC and Tata Steel were among the laggards.

The day-long discussions with the visiting US team on a bilateral trade deal were positive, and both sides agreed to push for an early and mutually beneficial conclusion of the agreement, the Commerce Ministry said on Tuesday.

“It was decided to intensify efforts to achieve early conclusion of a mutually beneficial trade agreement,” the ministry said in a statement after a day-long meeting with the US officials.

The BSE smallcap gauge climbed 0.51 per cent and midcap index went up by 0.19 per cent. Among sectoral indices, capital goods jumped 0.96 per cent, bankex (0.75 per cent), industrials (0.75 per cent), IT (0.72 per cent), oil & gas (0.69 per cent) and energy (0.66 per cent).

Metal, power, consumer durables and FMCG were the laggards. As many as 2,408 stocks advanced while 1,746 declined and 174 remained unchanged on the BSE.

“Indian equities maintained their upward momentum, aided by the revival of India-US trade talks and efforts to strengthen bilateral ties. A stable INR added to investor confidence, while global markets traded cautiously ahead of the US Fed’s FOMC decision.

Domestically, equities remained in risk-on mode, supported by expectations of a rate cut and improving macro fundamentals,” Vinod Nair, Head of Research, Geojit Investments Limited, said.