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Stock Markets Bounce Back: Sensex Surges 595 Points, Nifty Rises 170 on India-US Trade Talks Optimism

Stock Markets Bounce Back: The Indian stock markets staged a strong recovery on Tuesday, with the benchmark BSE Sensex climbing 595 points and the NSE Nifty gaining nearly 170 points, as optimism returned following the resumption of India-US trade negotiations.

The 30-share Sensex closed at 82,380.69, up 594.95 points or 0.73%, after touching an intraday high of 82,443.48. The broader Nifty ended at 25,239.10, rising 169.90 points or 0.68%.

On Monday, both indices had slipped after a prolonged rally — Sensex lost 118.96 points and Nifty fell 44.80 points, halting their five and eight-day winning streaks respectively.

Stock Markets Bounce Back: India-US Trade Talks Lift Sentiment

Market confidence strengthened after top negotiators from India and the US began talks to resolve tariff-related trade concerns. The move sparked hopes of a breakthrough in a proposed bilateral trade agreement.

A rally in Asian and US equities also supported domestic sentiment ahead of the US Federal Reserve policy meeting, where investors widely expect a 25 basis point rate cut.

Top Gainers & Losers

Among Sensex stocks, Kotak Mahindra Bank emerged as the top gainer, jumping 2.55%. Other major gainers included Larsen & Toubro, Mahindra & Mahindra, Maruti Suzuki, Bharti Airtel, and Tata Steel.

However, Asian Paints and Bajaj Finance ended in the red, dragging sentiment in parts of the market.

Sectoral Performance

On the NSE, most sectoral indices ended higher. The services index surged 1.67%, followed by telecom (1.50%), auto (1.43%), tech (1.05%), industrials (1.05%), realty (1.02%), consumer discretionary (0.96%) and commodities (0.90%). The FMCG index was the only laggard.

“The domestic market sustained its recovery trend supported by global cues and optimism around India-US trade negotiations. Auto and consumer durable stocks outperformed ahead of festive demand and new GST rates,” said Vinod Nair, Head of Research at Geojit Financial Services.

Global Cues

In Asia, South Korea’s Kospi, Japan’s Nikkei 225, and China’s SSE Composite closed higher, while Hong Kong’s Hang Seng slipped. European markets were trading lower in early sessions, while Wall Street ended higher on Monday.

Meanwhile, Brent crude dipped 0.55% to USD 67.07 per barrel.

Foreign Institutional Investors (FIIs), however, remained net sellers, offloading equities worth ₹1,268.59 crore on Monday, exchange data showed.

Frequently Asked Questions (FAQ)

1. Why did the stock market rise today?
The rally was mainly driven by optimism over India-US trade negotiations, supportive global market trends, and expectations of a US Federal Reserve rate cut.

2. Which stocks performed best on Sensex and Nifty?
Kotak Mahindra Bank, M&M, Maruti Suzuki, Bharti Airtel, and Tata Steel were among the top gainers, while Asian Paints and Bajaj Finance ended lower.

3. Which sectors led the rally?
The services, telecom, auto, tech, and realty sectors led the gains, while FMCG stocks underperformed.

4. What role did global cues play?
Global equity markets, especially in Asia and the US, rallied on hopes of a 25 bps rate cut by the US Fed, boosting Indian investor sentiment.

5. Did foreign investors buy or sell today?
According to exchange data, FIIs sold equities worth ₹1,268.59 crore on Monday, even as domestic investors drove the rally.

6. How did crude oil prices impact markets?
Global oil benchmark Brent crude slipped 0.55% to USD 67.07, providing relief for import-heavy Indian companies and supporting investor confidence.

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