Stock market, India-US trade deal: Nifty tops 26K, Sensex up 500 pts; m-cap rises Rs 2.3L cr
With global sentiment turning supportive, Nifty’s record high of 26,277.35 appears well within reach, and a surge towards the 27,000 mark over the next year looks likely.
- Oct 23, 2025,
- Updated Oct 23, 2025 9:34 AM IST
Hopes of a trade deal with the US sent domestic stock indices Nifty and Sensex surging on Thursday, even as most Asian markets were trading in the red. Analysts said the market mood remains buoyant as the US reportedly plans to slash tariffs on Indian imports to just 15–16 per cent, which Prashanth Tapse of Mehta Securities said, is a game-changing move that could supercharge India’s trade competitiveness and exports.
"With global sentiment turning supportive, Nifty’s record high of 26,277.35 appears well within reach, and a surge towards the 27,000 mark over the next year looks likely. The rally, initially fuelled by the RBI’s dovish stance, is broadening out — signalling that happy days are here again. Pharma stocks, particularly Sun Pharma and Laurus Labs, are set to shine on tariff optimism, while earnings from heavyweights like HUL, SBI Life, Dr Reddy’s, and Kotak Bank could keep markets buzzing through the week," Tapse said.
At 9.18 am, the BSE Sensex was quoting at 84,960.71, up 534.37 points or 0.63 per cent. The NSE Nifty topped the 26,000 level and was up 138.75 points or 0.54 per cent. Investor wealth, as suggested by BSE market capitalisation, climbed 2.26 lakh crore to Rs 4,73,15,082 crore.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments said comments from President Trump and responses from PM Modi indicate an early trade deal. The expected deal involves some concessions from both sides.
"If the reported 15-16 per cent tariffs on Indian exports to US materialises that would be a big positive for Indian economy and major boost to stock markets. The market rally which has already begun in the festival season will accelerate enabling the Nifty to set new record highs. Unprecedented record sales during the last few days has the potential to improve corporate earnings. FIIs turning buyers recently and short covering are factors that can fuel the rally. Clearly, it is advantage bulls," Vijayakumar said.
Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking said traders are advised to maintain a cautious “buy-on-dips” approach, particularly when using leverage. Booking partial profits during rallies and maintaining tight trailing stop-losses is recommended to manage risk effectively. Fresh long positions should be considered only if the Nifty sustains above the 26,200 mark. While the broader market undertone remains cautiously bullish, close monitoring of key technical levels and global developments will be crucial in the sessions ahead."
Pharma stocks were in focus on Thursday morning amid reports the US president Donald Trump has ordered probe into foreign drug pricing practices. The imminent investigation would consider whether US trading partners are underpaying for drugs, Reuters reported. The investigation is said to come under Section 301 of the Trade Act of 1974. US represents the largest market for Indian pharma, accounting for approximately 35 per cent of exports, valued at $10 billion in FY25.
Aurobindo Pharma derives 89 per cent of its revenue from exports, with nearly half (49 per cent) coming from the US. Similarly, US sales account for 46 per cent of Biocon’s revenues. Other major Indian pharmaceutical exporters to the US include Cipla (29 per cent), Dr. Reddy’s Laboratories (46 per cent), Lupin (36 per cent), Sun Pharma (33 per cent), Zydus Lifesciences (48 per cent), and Piramal Pharma (39 per cent).
Hopes of a trade deal with the US sent domestic stock indices Nifty and Sensex surging on Thursday, even as most Asian markets were trading in the red. Analysts said the market mood remains buoyant as the US reportedly plans to slash tariffs on Indian imports to just 15–16 per cent, which Prashanth Tapse of Mehta Securities said, is a game-changing move that could supercharge India’s trade competitiveness and exports.
"With global sentiment turning supportive, Nifty’s record high of 26,277.35 appears well within reach, and a surge towards the 27,000 mark over the next year looks likely. The rally, initially fuelled by the RBI’s dovish stance, is broadening out — signalling that happy days are here again. Pharma stocks, particularly Sun Pharma and Laurus Labs, are set to shine on tariff optimism, while earnings from heavyweights like HUL, SBI Life, Dr Reddy’s, and Kotak Bank could keep markets buzzing through the week," Tapse said.
At 9.18 am, the BSE Sensex was quoting at 84,960.71, up 534.37 points or 0.63 per cent. The NSE Nifty topped the 26,000 level and was up 138.75 points or 0.54 per cent. Investor wealth, as suggested by BSE market capitalisation, climbed 2.26 lakh crore to Rs 4,73,15,082 crore.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments said comments from President Trump and responses from PM Modi indicate an early trade deal. The expected deal involves some concessions from both sides.
"If the reported 15-16 per cent tariffs on Indian exports to US materialises that would be a big positive for Indian economy and major boost to stock markets. The market rally which has already begun in the festival season will accelerate enabling the Nifty to set new record highs. Unprecedented record sales during the last few days has the potential to improve corporate earnings. FIIs turning buyers recently and short covering are factors that can fuel the rally. Clearly, it is advantage bulls," Vijayakumar said.
Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking said traders are advised to maintain a cautious “buy-on-dips” approach, particularly when using leverage. Booking partial profits during rallies and maintaining tight trailing stop-losses is recommended to manage risk effectively. Fresh long positions should be considered only if the Nifty sustains above the 26,200 mark. While the broader market undertone remains cautiously bullish, close monitoring of key technical levels and global developments will be crucial in the sessions ahead."
Pharma stocks were in focus on Thursday morning amid reports the US president Donald Trump has ordered probe into foreign drug pricing practices. The imminent investigation would consider whether US trading partners are underpaying for drugs, Reuters reported. The investigation is said to come under Section 301 of the Trade Act of 1974. US represents the largest market for Indian pharma, accounting for approximately 35 per cent of exports, valued at $10 billion in FY25.
Aurobindo Pharma derives 89 per cent of its revenue from exports, with nearly half (49 per cent) coming from the US. Similarly, US sales account for 46 per cent of Biocon’s revenues. Other major Indian pharmaceutical exporters to the US include Cipla (29 per cent), Dr. Reddy’s Laboratories (46 per cent), Lupin (36 per cent), Sun Pharma (33 per cent), Zydus Lifesciences (48 per cent), and Piramal Pharma (39 per cent).