Short Description: Indian stock markets rose on global optimism and a key US trade deal, boosting Sensex & Nifty. Analysts weigh gains against mixed corporate earnings. Read Time: 2 minutes 15 seconds
Main Article:
Indian stock indices, the Sensex and Nifty, extended their gains for a second consecutive session on Tuesday, propelled by a combination of international tailwinds and renewed foreign investor interest. The benchmark Sensex closed 0.25% higher at 84,273.92 points, while the Nifty gained 0.26% to settle at 25,935.15 points. Analysts point to the recently announced interim trade deal between the US and India—crafted after a call between leaders Narendra Modi and Donald Trump—as a primary catalyst. This agreement, which addresses non-tariff barriers and reduces certain tariffs, has significantly alleviated market concerns over India-US trade tensions, creating a more favorable environment for cross-border investment.
Vinod Nair of Geojit Investments noted that the “strong resurgence in FII inflows,” coupled with a strengthening rupee, is bolstering sentiment. This optimism was reinforced by positive cues from other Asian markets. However, the rally was tempered by cautious profit-booking, particularly in banking, IT, and healthcare stocks, leading to a somewhat range-bound close. Ponmudi R of Enrich Money observed that in the absence of immediate, powerful triggers, investors opted for selective positioning rather than aggressive buying, indicating underlying market prudence.
Looking ahead, analysts agree that the market’s near-term trajectory will pivot from trade news to domestic fundamentals. The focus is now squarely on the Q3 earnings season, which has so far delivered mixed and below-expectation results across sectors. Investors are keenly watching to see how recent fiscal and monetary policy measures will translate into corporate performance in the coming quarters. While the US trade pact provides a sturdy floor for the market, sustainable upward momentum will require a clear revival in earnings growth.
Short Summary:
Indian equities rose on optimism from a new US-India interim trade deal and returning foreign institutional investment (FII). While the Sensex and Nifty posted gains, mixed Q3 earnings and sectoral profit-booking led to cautious trading. The market’s future direction now hinges on a recovery in corporate earnings momentum.
