Could Sensex and Nifty Rise on Positive India-US Trade Talks?

Mumbai, Sep 10 (NationPress) The Indian benchmark indices opened on a positive note this Wednesday, buoyed by encouraging developments in the US-India trade negotiations and robust global cues from the previous night.

The initiative by US President Donald Trump to enhance relations between India and the US, coupled with Prime Minister Narendra Modi's favorable response, serves as a significant boost for the Indian market.

The Sensex increased by 334 points or 0.41 percent, reaching 81,435 in early trading, while the Nifty climbed by 106 points or 0.43 percent, settling at 24,975.

Broader indices also saw substantial gains, with Nifty Midcap 100 rising 0.73 percent and Nifty Small Cap 100 increasing by 0.71 percent.

Key gainers in the Nifty pack included Larsen and Toubro, Kotak Mahindra, Dr. Reddy's Labs, and TCS. In contrast, Hero Motocorp, Maruti Suzuki, Tata Steel, and Hindalco were among the significant losers.

In terms of sector performance, Nifty IT emerged as the top gainer, surging 1.88 percent. Other notable gainers included Nifty PSU Bank and Nifty Realty. However, Nifty Auto dipped by 0.33 percent, alongside Nifty Consumer Durables, which also faced declines.

Nifty faced resistance near the 24,900 level for the second consecutive day. The index presented a small green candle with a long lower shadow on the daily chart, indicating ongoing consolidation and intraday fluctuations.

“Nifty continued its upward trend yesterday, marking five consecutive days of gains and closing at a two-week peak. By closing above 24,791, Nifty successfully reclaimed its position above the 50 DEMA. The index has decisively surpassed its 5, 10, 20, and 50-day DMAs, which signals bullish momentum on short-term charts,” stated Devarsh Vakil, Head of Prime Research at HDFC Securities.

Market analysts observe that buying interest is visible at lower levels, with the 24,900–25,000 zone acting as a significant barrier. Immediate support is identified at 24,620, and as long as the index remains below 25,000, some consolidation or mild weakness may persist.

US markets experienced substantial gains overnight, with the Dow Jones Industrial Average rising 0.43 percent, the Nasdaq advancing 0.37 percent, and the S&P 500 gaining 0.27 percent. The rally was fueled by expectations of Federal Reserve rate cuts following a significant downward revision of US job data.

Asian markets also opened positively this morning, with China's Shanghai index up 0.17 percent, Shenzhen gaining 0.24 percent, Japan's Nikkei rising 0.6 percent, and Hong Kong's Hang Seng Index increasing 0.98 percent. South Korea's Kospi also climbed 1.55 percent.

On Tuesday, foreign institutional investors (FIIs) ended an 11-day selling streak by purchasing equities worth Rs 2,050 crore, while domestic institutional investors (DIIs) net bought shares valued at Rs 83 crore.