Will the Stock Market Continue to Rise Amid US-India Trade Deal Hopes?
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Synopsis
As the Indian stock market rises, fueled by optimism surrounding the India-US trade deal and expectations of GST rationalization, investors are keenly watching for potential growth opportunities. This session has seen significant gains across major sectors, indicating a robust market response to favorable trade sentiment.
Key Takeaways
- Sensex closed at 81,425.15, up 323 points.
- Nifty ended at 24,973.10, up 104.50 points.
- Positive sentiment from India-US trade negotiations.
- IT sector showed significant gains.
- Broader market indices also reported positive growth.
Mumbai, Sep 10 (NationPress) The Indian equity indices closed the session on a positive note on Wednesday, maintaining the upward trend fueled by optimism regarding the India-US trade agreement and GST rationalization.
The Sensex concluded the day at 81,425.15, marking an increase of 323 points or 0.43 percent. The 30-share index opened robustly at 81,504.36, compared to the previous closing of 81,101.32, driven by buying interest in IT and FMCG sectors. The index peaked at an intra-day high of 81,643.88.
The Nifty index wrapped up at 24,973.10, up by 104.50 points or 0.42 percent.
Analysts noted, "Renewed optimism surrounding the ongoing trade discussions between India and the US has significantly boosted market sentiment. Expectations for robust earnings in H2 FY26, propelled by GST rationalization and the advantages of monetary easing, are enhancing resilience in valuations."
The IT sector continued to excel, buoyed by hopes for a potential Fed rate cut next week and a resurgence in technology spending. Investors are closely monitoring the India-US trade negotiations for indications of a favorable resolution to tariff-related challenges.
Top gainers from the Sensex included BEL, HCL Tech, Bajaj Finance, Axis Bank, TCS, Tech Mahindra, Infosys, SBIN, L&T, Adani Ports, ITC, Bajaj FinServ, and Kotak Bank. Conversely, Mahindra and Mahindra, Maruti Suzuki, Tata Motors, Ultratech Cement, Eternal, and PowerGrid ended lower.
Most sectoral indices concluded positively, with Nifty Fin Services rising 161.80 points or 0.62 percent, Nifty Bank climbing 319 points or 0.59 percent, Nifty FMCG increasing 359 points or 0.64 percent, and Nifty IT soaring 927 points or 2.63 percent. However, Nifty Auto dropped 348.55 points or 1.28 percent due to profit-taking.
The broader market mirrored this positive trend, with Nifty smallcap 100 up 130 points or 0.73 percent, Nifty midcap 100 surging 535 points or 0.93 percent, and Nifty 100 finishing the session 319 points or 0.59 percent higher.
Point of View
It's evident that the Indian stock market is responding positively to the potential for enhanced trade relations with the United States. This optimism reflects a broader sentiment of resilience and growth, particularly as analysts predict stronger earnings driven by GST reforms. The nation is poised for a period of increased economic activity, and stakeholders are encouraged to remain informed and engaged during this dynamic time.
NationPress
10/09/2025
Frequently Asked Questions
What influenced the recent rise in the Indian stock market?
The rise can be attributed to optimism surrounding the India-US trade deal and GST rationalization which has boosted market sentiment.
Which sectors performed well in the latest session?
Sectors such as IT, FMCG, and financial services saw significant gains, while the auto sector faced some profit booking.
What are analysts predicting for H2 FY26?
Analysts anticipate stronger earnings driven by GST rationalization and the benefits of monetary easing.
How did major indices perform?
The Sensex ended up by 323 points, while the Nifty rose by 104.50 points, indicating a positive session overall.
What should investors watch in the upcoming weeks?
Investors should monitor the progress of the India-US trade negotiations and potential monetary policy changes from the Fed.
