Stock market today : Indian equity benchmarks, Nifty50 and BSE Sensex , rallied strongly in trade on Thursday, with both indices hitting several-month highs. Importantly, Nifty50 crossed the 25,000 mark and settled above it. BSE Sense also closed above 82,000. Nifty50 ended the day at 25,062.10, up almost 400 points or 1.60%. BSE Sensex ended at 82,530.74, with a 1,200 point surge which amounts to a 1.48% rally.
The stock market rally was driven by positive performance in financial, automotive and technology sectors, with market sentiment bolstered by US President Donald Trump ’s remarks on India’s zero-tariff offer for a trade deal.
The total market value of BSE-listed companies increased by Rs 5.05 lakh crore, reaching Rs 439.94 lakh crore.
In sectoral performance, Nifty Financials increased by 1.3%, Automotive sector rose by 1.9%, IT sector advanced by 1.2%, and Metal sector grew by 1.7%, according to an ET report. The broader market demonstrated positive momentum, with small-cap and mid-cap indices each advancing by approximately 0.7%.
Why did the stock market rally today? Top reasons
1) Zero-tariff trade deal discussions with the US
During a significant announcement from Doha on Thursday, US President Donald Trump disclosed, "India offered US a deal, basically zero tariffs," whilst speaking during his West Asia tour.
Also Read | Donald Trump says India has offered a trade deal with ‘literally no tariffs’
Trump's statement follows his April 30 comments where he stated, "India tariff talks are going great, think we'll have a deal soon," during an event in Michigan.
According to a recent Reuters report, India proposed reducing its average tariff difference with the US from approximately 13% to below 4%, representing a 9-percentage-point reduction. This proposal represents one of India's most comprehensive efforts to harmonise its trade policies with major global trading partners.
2) Oil Price Plunge
Oil prices declined by more than $2 on Thursday as discussions around a potential U.S.-Iran nuclear agreement suggested possible sanctions relief, which could boost global oil supply.
Brent crude decreased 3.5% to $63.79 per barrel, whilst WTI crude declined to $60.89. The reduction in oil prices assists in controlling inflation pressures and decreases India's import expenses, providing support to domestic market conditions.
3) Gold Price Decline
Gold June futures on MCX declined to a one-month low of Rs 90,890 per 10 grams, showing a 1.5% reduction from Wednesday's closing price and an 8.5% decrease from its recent high. This price adjustment occurred due to diminishing geopolitical concerns, lower demand for safe-haven investments, and increased attention towards U.S. economic indicators and Federal Reserve decisions.
The downward movement in gold prices typically indicates investors' reduced need for risk protection, enabling increased equity investments and suggesting improved market sentiment.
Also Read | ‘Don’t want you building in India’: Donald Trump’s clear message to Apple CEO Tim Cook to 'Make in US'; says India can take care of themselves
4) FII Investment Surge
Foreign institutional investors have invested approximately Rs 50,000 crore in Indian equities since April 15, recording positive net inflows in 19 out of 20 recent trading sessions. This investment pattern follows a quarter of continuous outflows.
5) Cooling Inflation
Recent data showed US consumer inflation increased by 0.2% in April, below economists' expectations of 0.3%, reducing concerns about additional Federal Reserve rate increases.
Additionally, India recorded its lowest retail inflation in six years at 3.16% in April, falling below the Reuters projection of 3.27%. These figures have increased the likelihood of the Reserve Bank of India implementing a rate reduction, potentially supporting economic expansion and market performance.
"The market staged a robust rebound, closing with substantial gains, driven by a decline in domestic inflation and positive signals from the U.S. regarding a potential trade agreement with India," said Vinod Nair, Head of Research, Geojit Investments Limited.
"Investor attention is now turning to the upcoming speech by the Federal Reserve Chair, which is anticipated to provide further clarity on the future policy trajectory, particularly in light of the recent easing in U.S. inflation data," Nair added.
The stock market rally was driven by positive performance in financial, automotive and technology sectors, with market sentiment bolstered by US President Donald Trump ’s remarks on India’s zero-tariff offer for a trade deal.
The total market value of BSE-listed companies increased by Rs 5.05 lakh crore, reaching Rs 439.94 lakh crore.
In sectoral performance, Nifty Financials increased by 1.3%, Automotive sector rose by 1.9%, IT sector advanced by 1.2%, and Metal sector grew by 1.7%, according to an ET report. The broader market demonstrated positive momentum, with small-cap and mid-cap indices each advancing by approximately 0.7%.
Why did the stock market rally today? Top reasons
1) Zero-tariff trade deal discussions with the US
During a significant announcement from Doha on Thursday, US President Donald Trump disclosed, "India offered US a deal, basically zero tariffs," whilst speaking during his West Asia tour.
Also Read | Donald Trump says India has offered a trade deal with ‘literally no tariffs’
Trump's statement follows his April 30 comments where he stated, "India tariff talks are going great, think we'll have a deal soon," during an event in Michigan.
According to a recent Reuters report, India proposed reducing its average tariff difference with the US from approximately 13% to below 4%, representing a 9-percentage-point reduction. This proposal represents one of India's most comprehensive efforts to harmonise its trade policies with major global trading partners.
2) Oil Price Plunge
Oil prices declined by more than $2 on Thursday as discussions around a potential U.S.-Iran nuclear agreement suggested possible sanctions relief, which could boost global oil supply.
Brent crude decreased 3.5% to $63.79 per barrel, whilst WTI crude declined to $60.89. The reduction in oil prices assists in controlling inflation pressures and decreases India's import expenses, providing support to domestic market conditions.
3) Gold Price Decline
Gold June futures on MCX declined to a one-month low of Rs 90,890 per 10 grams, showing a 1.5% reduction from Wednesday's closing price and an 8.5% decrease from its recent high. This price adjustment occurred due to diminishing geopolitical concerns, lower demand for safe-haven investments, and increased attention towards U.S. economic indicators and Federal Reserve decisions.
The downward movement in gold prices typically indicates investors' reduced need for risk protection, enabling increased equity investments and suggesting improved market sentiment.
Also Read | ‘Don’t want you building in India’: Donald Trump’s clear message to Apple CEO Tim Cook to 'Make in US'; says India can take care of themselves
4) FII Investment Surge
Foreign institutional investors have invested approximately Rs 50,000 crore in Indian equities since April 15, recording positive net inflows in 19 out of 20 recent trading sessions. This investment pattern follows a quarter of continuous outflows.
5) Cooling Inflation
Recent data showed US consumer inflation increased by 0.2% in April, below economists' expectations of 0.3%, reducing concerns about additional Federal Reserve rate increases.
Additionally, India recorded its lowest retail inflation in six years at 3.16% in April, falling below the Reuters projection of 3.27%. These figures have increased the likelihood of the Reserve Bank of India implementing a rate reduction, potentially supporting economic expansion and market performance.
"The market staged a robust rebound, closing with substantial gains, driven by a decline in domestic inflation and positive signals from the U.S. regarding a potential trade agreement with India," said Vinod Nair, Head of Research, Geojit Investments Limited.
"Investor attention is now turning to the upcoming speech by the Federal Reserve Chair, which is anticipated to provide further clarity on the future policy trajectory, particularly in light of the recent easing in U.S. inflation data," Nair added.
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