Sensex jumps 595 pts, Nifty tops 25,200 on India-US trade talks, weak dollar; what’s next?

Domestic equity benchmarks Sensex and Nifty ended higher on Friday, tracking gains in Asian markets amid optimism over progress in US trade talks with China and India. The dollar slipped broadly as investors awaited the Federal Reserve’s decision on interest rate cuts at this week’s meeting.

At the closing bell, the Sensex rose 594.95 points, or 0.73 per cent, to settle at 82,380.69, while the Nifty50 gained 169.90 points, or 0.68 per cent, to close at 25,239.10.

Rupak De, Senior Technical Analyst at LKP Securities, said that the Nifty50 has given a double-bottom breakout on the daily chart, signaling rising optimism among traders. He pointed out that the index is holding firm above the 21-day EMA, reinforcing the continuation of the uptrend.

“Additionally, the RSI has crossed above its previous swing high, lending further support to the bullish momentum. In the near term, the trend looks strong, with potential upside towards 25,500 and beyond. On the downside, immediate support lies at 25,000, and a breach below this level could mark the end of the ongoing rally,” De said.

Kotak Mahindra Bank emerged as the top gainer on the Sensex, climbing 2.64 per cent to Rs 2,023. M&M advanced 2.44 per cent, L&T added 2.26 per cent, Maruti Suzuki rose 1.99 per cent, Bharti Airtel gained 1.88 per cent, and Tata Steel was up 1.68 per cent.

L&T, Bharti Airtel, Kotak Mahindra Bank, M&M and Axis Bank were the five stocks that contributed heavily to the Sensex’s rise.

Among the sectoral indices, the BSE Auto index advanced 1.43 per cent to settle at 60,624.37, while the BSE Telecom index gained 1.50 per cent to close at 2,915.78.

Overall, out of the 4,309 active stocks traded on the BSE, 2,540 ended with gains, while 1,577 settled lower and 192 remained unchanged. As many as 155 stocks scaled their 52-week highs during the session. A total of 55 others hit their 52-week lows. The session also saw 290 stocks locked at their respective upper circuits and 131 others at lower circuits.

Within the BSE Sensex pack, Maruti Suzuki hit a fresh 52-week high of Rs 15,588.95.

Vinod Nair, Head of Research, Geojit Investments Limited, said the domestic market sustained its recovery trend, supported by favourable global cues on expectations of a 25 bps rate cut in the forthcoming US Fed policy decision and renewed optimism surrounding the resumed India-US trade negotiations.

“Auto and consumer durable stocks outperformed, ahead of the rollout of new GST rates and festive-driven demand expectations. Going forward, investor attention will remain on trade discussions, while strong domestic macro fundamentals are expected to drive upward earnings revisions, supporting current valuations and mitigating downside risks," Nair said.