Is the Stock Market Rising Due to Trump’s Indication of a ‘Great’ Trade Deal with India?

Mumbai, June 27 (NationPress) The Indian benchmark indices opened on a positive note on Friday, buoyed by the prospect of a significant trade agreement between India and the US, as there was noticeable buying activity in the PSU bank and IT sectors early in the session.

At approximately 9:15 am, the Sensex was up by 150.40 points or 0.18 percent, reaching 83,906.27, while the Nifty gained 54.50 points or 0.21 percent, standing at 25,603.

US President Donald Trump has alluded to a “very big” trade deal with India, following a four-day series of closed-door negotiations between the two nations. During the 'Big Beautiful Event' at the White House, Trump expressed confidence in a “great deal” with India.

Market analysts suggest that the anticipation of an extension on the upcoming US tariff deadline set for July 9th is also contributing to positive market sentiment.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd., noted, “High inflation, aggressive monetary tightening by central banks, geopolitical tensions, and unprecedented tariff threats have posed challenges to the market rally, but the bull market has surmounted these concerns. It seems the approaching July 9th tariff deadline will not significantly hinder the rally.”

In early trading, the Nifty Bank index saw a decline of 80.25 points or 0.14 percent, settling at 57,126.45. The Nifty Midcap 100 index was at 59,505.65, up by 278.25 points or 0.47 percent, while the Nifty Smallcap 100 index rose by 114.70 points or 0.61 percent to 18,920.30.

Akshay Chinchalkar, Head of Research at Axis Securities, mentioned, “The inside day pattern observed two days ago indicated a trending move was imminent, and we witnessed that yesterday, with over five stocks advancing for every stock that declined in the Nifty.”

He further highlighted that the market may continue to gain momentum, with the 25,700-25,800 zone being the next immediate resistance. As long as tactical support at 25,000 remains intact, bulls are optimistic about surpassing that threshold soon.

Among the Sensex constituents, L&T, Tata Steel, SBI, Tata Motors, NTPC, and HCL Tech emerged as the top gainers, whereas HDFC Bank, Bajaj Finserv, Kotak Mahindra Bank, and Bajaj Finance were the top losers.

Foreign institutional investors (FIIs) were net buyers on June 26, acquiring equities worth ₹12,594.38 crore, while domestic institutional investors (DIIs) sold equities worth ₹195.23 crore.

In Asian markets, indices in China, Bangkok, Seoul, and Hong Kong were in the red, while Japan was the only market trading in the green.

In the previous trading session, the Dow Jones in the US closed at 43,386.84, rising by 404.41 points or 0.94 percent. The S&P 500 recorded a gain of 48.86 points or 0.80 percent, finishing at 6,141.02, and the Nasdaq closed at 20,167.91, up by 194.36 points or 0.97 percent.