Since the U.S. is apparently planning to lower duties on Indian goods in order to help the markets, Dalal Street is still feeling upbeat and hopeful.
On Thursday, October 23, excitement over the U.S.-India trade pact drove a gap-up opening for Dalal Street’s key stock indexes, the Nifty 50 and Sensex, which extended gains for the sixth straight day.
The Nifty was up 206.25 points, or 0.80 percent, at 26,074.85, while the Sensex was up 726.66 points, or 0.86 percent, at 85,153.00 at 09:35 a.m. The Nifty 50 index last hit the 26,200 mark on September 27, 2024, and it last traded between the 26,000 and 26,100 levels on September 30, 2024.
IT stocks led the rise as sectoral indexes began the day mostly in the green. Following a 1.78 percent increase in the Nifty IT index, Nifty Metal, Private Bank, and Consumer Durables all saw advances of between 0.4 and 0.5 percent.
The indexes for auto, financial services, FMCG, pharmaceuticals, PSU Bank, and oil and gas all saw slight increases of 0.2 to 0.4 percent, indicating widespread confidence across several industries. On the other hand, Nifty Media and Realty had slight declines, falling 0.02 and 0.06 percent, respectively.
As New Delhi reduces its oil imports from Russia, Washington DC may lower the tariff rate on India from 59% to around 15%, according to sources. According to sources who spoke to Mint, a trade agreement between the nations was imminent.
President Trump added, “I called to Prime Minister Modi today and we really have a very wonderful connection,” in reference to Diwali. He will not purchase a lot of oil from Russia. He shares my desire for the conflict (between Russia and Ukraine) to stop. They will not be purchasing a lot of oil.
The market is still in a positive attitude, according to Prashanth Tapse, Senior VP (Research) at Mehta Equities, since the United States is apparently planning to lower tariffs on Indian imports, which is a “game-changing move” that might boost India’s exports and trade competitiveness.
The Nifty’s record high of 26,277.35 is well within reach, and a spike towards the 27,000 level over the course of the next year seems plausible as global mood becomes positive. The RBI’s dovish position originally fueled the surge, but it is now spreading out, indicating that good times are returning.
Additionally, when the markets recovered during the last several sessions, foreign institutional investors (FIIs) switched to buying to cover their short positions. Between the beginning of the October series and the special Muhurat session, FIIs’ short positions in index futures decreased from 94 percent to 82 percent.
Technically speaking, the Nifty 50 closed above the 25,850 level in the previous session, according to Amruta Shinde, Technical & Derivative analyst at Choice Broking. “This encouraging trend points to sustained growth in the foreseeable future. While there is resistance at the 26,100 and 26,200 levels on the upside, there is immediate support between 25,800 and 25,700 on the downside.