Domestic equity markets opened the week on a strong footing, buoyed by renewed optimism over a potential trade deal between the US and India. The upbeat global sentiment also supported investor confidence on Dalal Street.
At 9:30 am, the BSE Sensex surged 306.28 points to 84,518.16, while the NSE Nifty50 climbed 97.55 points to 25,892.70. Most broader market indices also traded higher in early deals, even as market volatility showed a mild uptick.
Analysts attributed the positive momentum to an improving global setup and easing trade tensions. “The global market construct is bullish. With the Dow Jones, Nikkei, and Kospi at record highs, sentiments are positive. Globally, there are signals of declining trade tensions,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
He added that comments from US Treasury Secretary Scot Bessent, who said there is a “substantial framework for trade negotiations with China,” have reinforced expectations of an imminent US-China trade deal. This, in turn, has brightened the outlook for emerging markets like India.
Domestically, market fundamentals are showing signs of improvement. Brisk festival season sales and reports of a sharp uptick in private sector capital spending are key positives. “This long-awaited trend has significant implications for India’s growth trajectory and the stock market,” Vijayakumar noted.
Analysts believe the environment remains conducive for further gains in benchmark indices. “Conditions are favourable for the Nifty and Sensex to climb to record highs. An important feature of the ongoing rally is its correlation with short covering, and this trend has more room to play out,” said Anand James, Chief Market Strategist at Geojit Investments.
Despite Friday’s brief pause near VWAP resistance, the formation of a morning star pattern indicates potential for an early return to the upside. Analysts expect the Nifty to aim for 26,186 in the near term. However, if the index struggles to clear the 25,940–26,000 resistance zone, a pullback towards 25,590–25,400 could follow.
Overall, optimism around trade negotiations and improving domestic fundamentals are keeping market sentiment firmly in the green.