Did Hopes for a US-China Trade Deal Propel Sensex and Nifty Higher?
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Synopsis
On October 27, the Indian stock markets surged as optimism around a potential US-China trade deal took center stage. The Sensex and Nifty both saw significant gains, highlighting investor confidence amidst evolving global economic dynamics. Discover how these developments could impact your investments.
Key Takeaways
- Sensex rose by 566.96 points.
- Nifty gained 170.9 points.
- Strong sentiment driven by US-China trade deal expectations.
- Support at 25,700, resistance at 26,000.
- Broader markets also saw gains.
Mumbai, Oct 27 (NationPress) The Indian stock markets kicked off the week on a high note on Monday, bouncing back after a brief pause during the prior session.
Investor sentiment turned positive as anticipation grew around a potential trade agreement between the United States and China.
The Sensex surged by 566.96 points, equivalent to 0.67 percent, closing at 84,778.84, while the Nifty rose by 170.9 points, also 0.67 percent, settling at 25,966.05.
“The Nifty opened strongly and remained mostly stable throughout the day in anticipation of the NSE F&O expiry. Sentiment remains robust as the index holds above the breakout threshold,” analysts noted.
“On the downside, support is observed at 25,700, below which a decline may occur. On the upside, resistance is positioned at 26,000; a decisive breakthrough or close above this mark could instigate a rally towards 26,500 in the short term,” they added.
This rally followed remarks from US Treasury Secretary Scott Bessen on Sunday, indicating that President Trump’s suggested 100 percent tariffs on Chinese products were now “off the table.”
Bessen also mentioned that China is expected to boost its soybean imports and postpone restrictions on rare earth exports—actions that further enhanced global market confidence.
Additionally, softer-than-expected inflation data from the US elevated market sentiment, with analysts now predicting two more interest rate cuts in 2025.
Key gainers on the Sensex included Bharti Airtel, State Bank of India, and Eternal, each climbing more than 2 percent.
Conversely, Kotak Mahindra Bank, Bharat Electronics, Infosys, Bajaj Finance, and others were among the main laggards of the day.
The broader markets also saw an upward trend, with the Nifty MidCap index increasing by 0.93 percent and the Nifty SmallCap index gaining 0.82 percent.
Sector-wise, indices for PSU Bank, Realty, Metal, and Oil & Gas advanced over 1 percent each, while Media and Pharma stocks experienced some profit booking.
Point of View
I believe that the recent uptick in the Indian stock markets is a clear reflection of the ongoing global economic shifts. The potential for a US-China trade deal could significantly affect market dynamics, and it is crucial for investors to stay informed and agile in this ever-changing landscape.
NationPress
28/10/2025
Frequently Asked Questions
What factors contributed to the rise in the stock markets?
The rise in stock markets can be attributed to positive sentiments regarding a potential trade deal between the US and China, as well as favorable inflation data from the US.
Which stocks performed well during this period?
Key gainers included Bharti Airtel, State Bank of India, and Eternal, each rising by more than 2 percent.
What are the key resistance and support levels for Nifty?
Support for Nifty is at 25,700, while resistance is observed at 26,000.
How did the broader markets perform?
The broader markets also showed positive movements, with the Nifty MidCap index rising 0.93 percent and the Nifty SmallCap index gaining 0.82 percent.
What sectors showed significant growth?
Sectors such as PSU Bank, Realty, Metal, and Oil & Gas advanced over 1 percent each.
