The Indian stock market resumed its winning streak on Monday, October 27, with key benchmark indices closing over 0.60% higher as easing trade tensions between the US and China boosted global risk appetite and growing expectations of a US Federal Reserve rate cut sparked a strong rally across key Asian markets.
Heavyweights including Reliance Industries, Bharti Airtel, Infosys, SBI, and Axis Bank drove the Nifty 50 rally, which closed 0.66% higher at 25,966.60. The S&P BSE Sensex also gained 0.67%, ending the day at 84,778, compared to Friday’s close.
Broader markets advanced as well, with the Nifty Midcap 100 surging 0.95%, while the Nifty Smallcap 100 rose 0.83%.
Among sectoral indices, the Nifty PSU Bank index stole the spotlight, rallying 2.22% to end at a record high of 7,990. The Nifty Oil & Gas index also displayed similar strength, rising 1.52%, followed by the Nifty Realty and Nifty Metal indices, which gained 1.46% and 1.16%, respectively.
The Nifty Auto and Nifty IT indices also advanced, rising 0.4% each. On the downside, the Nifty Media and Nifty Pharma indices registered losses of over 0.20% each.
U.S. President Donald Trump said Monday that Washington and Beijing were poised to “come away with” a trade deal ahead of his expected meeting with Chinese leader Xi Jinping. Speaking aboard Air Force One en route to Japan from Malaysia, Trump added that he could sign a final deal on TikTok as early as Thursday, according to media reports.
Trump is set to meet Chinese President Xi Jinping later this week as part of his trip to Asia.
U.S. Treasury Secretary Scott Bessent said Sunday that U.S. and Chinese officials had worked out a “substantial framework” for a trade deal that would avert 100% U.S. tariffs on Chinese goods and delay China’s planned rare-earth export controls ahead of trade discussions this week.
(more to come)