Sensex Jumps 1,400 Pts, Nifty Tops 25K on Trade Hopes, Crude Drop

Indian stock markets witnessed a dramatic turnaround Thursday, with the Sensex soaring nearly 1,400 points and the Nifty climbing back above the 25,000 threshold. The recovery was fueled by strong buying across sectors such as metals, automobiles, information technology, and real estate, reflecting renewed investor confidence.

The benchmark Sensex, which began the day under pressure and had dipped over 500 points in early trade, reversed course sharply to peak at 82,718.14, marking a rise of 1,387.58 points or 1.7 per cent. The Nifty 50 index also jumped 442.45 points, a gain of 1.79 per cent, reaching 25,109.35 by the close.

The market rally coincided with positive global market trends and growing optimism around a prospective trade agreement between India and the United States. Remarks by US President Donald Trump contributed to the improved sentiment.

Among the top performers were Hero MotoCorp, JSW Steel, Tata Motors, Shriram Finance, and HCL Technologies, each gaining as much as 6 per cent during the session.

1. Prospect of an India-US Trade Agreement

Investor confidence received a significant boost after President Trump revealed that India proposed a trade deal offering zero tariffs to the US. Speaking at a business forum in Doha, Trump stated that India’s offer could eliminate tariffs, easing trade barriers that have historically challenged US exports to India. This development raised hopes for a swift resolution within the 90-day US tariff pause announced in April, which had previously threatened to impose duties as high as 26 per cent on Indian imports.

2. Decline in Crude Oil Prices

Falling crude oil prices in futures markets helped alleviate concerns over rising import costs and inflation. Thursday’s trading saw crude futures fall by Rs 137 to Rs 5,264 per barrel, driven by weak demand on the global stage. As India is heavily dependent on oil imports, lower crude prices provide a positive outlook for corporate earnings and economic stability.

3. Buying in Rate-Sensitive Stocks on Anticipated RBI Rate Cut

Sectors sensitive to interest rate movements, including real estate and metals, attracted considerable investor interest. This was buoyed by the recent moderation in retail inflation, which fell to 3.16 per cent in April from 3.34 per cent in March and 4.83 per cent a year earlier. The softer inflation figure strengthened expectations that the Reserve Bank of India may lower interest rates in its June policy review, encouraging investors to increase exposure to rate-dependent stocks.

4. Sustained Foreign Institutional Investor Inflows

Foreign institutional investors (FIIs) continued to back Indian equities with net purchases amounting to Rs 931.80 crore on Wednesday. The ongoing inflow of foreign capital added further momentum to the market’s upward trajectory.

The combination of these factors helped reverse early losses and fueled the sharp gains in the Indian stock market Thursday.