Markets staged a remarkable comeback on Thursday, with benchmark indices scaling seven-month highs as optimism around a potential India-US trade deal triggered broad-based buying. The soared 1,200.18 points or 1.48 per cent to close at 82,530.74, while the NSE Nifty jumped 395.20 points or 1.60 per cent to end at 25,062.10, successfully breaching the psychologically important 25,000 level.
The rally gained momentum in the second half of the trading session after US President Donald Trump indicated that India had offered a zero-tariff trade deal to the US, reigniting hopes of an agreement being reached soon. This provided the much-needed catalyst for markets that had been consolidating after Monday’s strong rally.
“Today, the benchmark indices witnessed a stellar rally. The ends 395 points higher, while the Sensex was up by 1200 points,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities. “From the day’s lowest point, the market rallied over 600/1900 points. Additionally, it successfully cleared the 25,000/82500 mark and managed to close above it, which is largely positive.”
All sectoral indices ended in the green, with the Defence index emerging as the top performer with a 2.62 per cent gain. Auto stocks led the broader market rally amid optimism around potential tariff relief, followed by the realty and metals sectors.
Among individual stocks, emerged the top gainer on the NSE, surging 6.17 per cent to close at ₹4,318. followed with a 4.82 per cent gain to ₹1,037, while climbed 4.30 per cent to end at ₹729. t and also posted strong gains of 3.80 per cent and 3.38 per cent, respectively. was the sole loser among Nifty constituents, marginally declining by 0.17 per cent to ₹780.
The market breadth remained decisively positive for the fourth consecutive session, with 2,637 stocks advancing against 1,327 declines on the BSE. Ninety-two stocks hit 52-week highs, while 28 touched their 52-week lows. Trading volumes on the NSE cash market increased by 10 per cent compared to the previous session, marking the highest turnover since March 27, 2025.
“It was a broad-based rally, with all major sectors posting strong gains. After Monday’s strong rally, markets had been in a holding pattern, waiting for fresh triggers to move higher. Today’s remarks provided that much-needed push, helping the Nifty reclaim the crucial 25,000 level,” noted Satish Chandra Aluri from Lemonn Markets Desk.
The Nifty Bank index gained 554.30 points or 1.01 per cent to close at 55,355.60, while Nifty Financial Services climbed 337.25 points or 1.29 per cent to end at 26,482.80. The Nifty Midcap 100 and Nifty Next 50 indices rose by 0.70 per cent and 1.05 per cent, respectively.
On the currency front, the Indian rupee snapped its three-day winning streak, depreciating by 28 paise against the US dollar to close at 85.55. “The Indian currency and local stock markets navigated a session defined by considerable price swings. Although the rupee rallied to finish close to its session peak, it ultimately concluded with declines, largely influenced by the need for US currency from petroleum purchasers and those managing financial risk,” said Dilip Parmar, Senior Research Analyst at HDFC Securities.
Technical analysts remain optimistic about the market’s near-term trajectory. “The overall trend of Nifty continues to be positive and the next upside levels to be watched around 25250 and 25500 in the near term. Immediate support is placed at 24800,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
Looking ahead, market participants expect the positive momentum to continue in the short term. Nandish Shah, Senior Derivative & Technical Research Analyst at HDFC Securities, noted, “Short term trend of the Nifty remains positive as it is placed above its important short term moving averages. Next resistance for the Nifty is seen at 25207, derived from 76.4 per cent retracement of the entire fall seen from 26277 to 21743. On the downside, 24800 could offer immediate support.”
The easing of retail inflation, which reportedly dipped to a six-year low of 3.16 per cent in April, has also bolstered investor sentiment, raising hopes for potential interest rate cuts. With continued FII inflows and improved macroeconomic indicators, analysts recommend a “buy on dips” strategy for the near term as the market eyes further upside potential.
Benchmark BSE Sensex soared by 1,200 points, while NSE Nifty closed above the 25,000 mark for the first time in seven months on Thursday following across-the-board buying by investors and fresh foreign fund inflows into shares.
Rising for the second day, the 30-share BSE Sensex jumped 1,200.18 points or 1.48 per cent to settle at a seven-month high of 82,530.74 with 29 of constituents ending higher.
The index moved in a range in the first half, but picked up momentum in the afternoon session following sharp gains in banking, auto, IT and oil & gas shares. Sensex rallied 1,387.58 points or 1.70 per cent to hit a day’s high of 82,718.14 in the second half of the session.
The NSE Nifty surged 395.20 points or 1.60 per cent to settle at a seven-month high of 25,062.10. The 50-issue index had closed above 25,000 on October 15, 2024, previously.
Among Sensex shares, Tata Motors was the biggest gainer, climbing by over 4 per cent. HCL Tech, Adani Ports, Eternal, Maruti, Reliance Industries and Asian Paints were among the gainers. HDFC Bank, ICICI Bank, Bharti Airtel and Infosys added to the rally.
IndusInd Bank emerged as the only laggard.
Broader markets also closed higher with the BSE smallcap gauge climbing 0.94 per cent and the midcap index by 0.67 per cent.
All sectoral indices ended higher, with realty surging 1.87 per cent, auto (1.86 per cent), services (1.85 per cent), industrials (1.62 per cent), metal (1.60 per cent), consumer discretionary (1.57 per cent) and commodities (1.51 per cent).
In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng settled lower. Markets in Europe were trading on a mixed note.
US markets ended on a mixed note on Wednesday.
Global oil benchmark Brent crude dropped 3.65 per cent to $63.68 a barrel.
Foreign Institutional Investors (FIIs) bought equities worth ₹931.80 crore on Wednesday, according to exchange data.
On Wednesday, the BSE Sensex climbed 182.34 points or 0.22 per cent to settle at 81,330.56. The Nifty rose by 88.55 points or 0.36 per cent to 24,666.90.