The main indices on Dalal Street surged on Thursday, with the Sensex climbing 760.80 points to 85,187.14 and the Nifty50 rising 218.50 points to 26,087.10 around 9:40 am, slowly inching closer to its all-time high.
The move extends the ongoing festive rally and reflects growing optimism among investors.
The rally comes amid reports that India and the United States are , which could see U.S. tariffs on Indian exports cut from 50% to around 15–16%.
The proposed agreement reportedly focuses on energy and agriculture and may also involve India gradually reducing crude oil imports from Russia, aligning with Washington’s strategic goals.
Gaurav Sharma, Associate Vice President and Head of Research at Globe Capital, told Business Today that the rally is “basically the outcome of the fact that we are nearing a deal.”
He added that Commerce Minister Piyush Goyal’s recent meetings with US counterparts have strengthened expectations of a breakthrough.
“If that deal happens, IT and pharma will be the biggest gainers, as these sectors were impacted the most by U.S. tariffs. The Nifty IT index soared nearly 2%. Infosys, which generates a large chunk of revenue from the US, gained about 3%, and that’s no surprise. Companies are gearing up for the up move, and the upcoming buyback from Infosys, excluding promoters, could further boost retail participation,” Sharma said.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the market’s upbeat response reflects growing confidence in an early deal. “If the reported 15–16% tariff structure materialises, it will be a major positive for the economy and equities. Festive sales momentum, renewed FII buying, and short-covering are further fueling the rally, with textile stocks likely to benefit,” he noted.
Analysts also see strong technical momentum. Anand James, Chief Market Strategist at Geojit, highlighted that Nifty continues trading near the upper Bollinger Band, with upside targets at 26,186 and 26,800 and support at 25,780. “An outright reversal is unlikely today,” he said.
With the Sensex and Nifty gaining momentum, traders and analysts are closely watching whether the festive rally can sustain itself over the coming sessions. The market is currently buoyed by optimism around a potential India–US trade deal, strong domestic consumption trends, and short-covering in large-cap stocks.
Sectoral leaders such as IT and pharma, which were earlier impacted by high US tariffs, have already shown sharp gains, while textile stocks are also seeing renewed interest.
However, experts caution that while technical indicators remain bullish—with Nifty trading near the upper Bollinger Band—investors should remain alert to any sudden global cues, geopolitical developments, or delays in trade negotiations that could trigger short-term volatility.
Foreign institutional investor inflows, retail participation in buybacks, and continued festive season spending are expected to support the rally, but sustaining these levels will require consistent positive news flow.
Analysts say that the near-term upside for Nifty lies around 26,186, with an optimistic stretch target of 26,800, while the immediate support is seen at 25,780. Any sharp profit-booking or unexpected macroeconomic developments could test these levels.
For now, however, the sentiment remains overwhelmingly positive, and many market participants believe the rally has the potential to push benchmarks to fresh record highs before year-end.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)