Markets opened sharply higher on Thursday morning, with the rising from its previous close of 84,426.34 to open at 85,154.15, and further climbing 748.83 points (0.89 per cent) to 85,175.17 at 9.50 am. Similarly, the advanced from its previous close of 25,868.60 to open at 26,057.20, and was last seen up 210.35 points (0.81 per cent) at 26,078.95. The rally was driven by optimism over a potential India–US trade agreement and positive domestic sentiment following the festive break.
The rally was fueled by reports that the US plans to reduce tariffs on Indian imports to 15-16 per cent, a significant reduction that could boost India’s export competitiveness. “The expected deal involves some concessions from both sides. If the reported 15-16 per cent tariffs on Indian exports to US materialises that would be a big positive for Indian economy and major boost to stock markets,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
IT stocks led the gains, with rising 3.33 per cent to ₹1,521.50, advancing 2.71 per cent to ₹1,526.30, and Tech Mahindra climbing 2.20 per cent to ₹1,480.50. The banking sector also contributed to the rally, with Axis Bank gaining 2.10 per cent to ₹1,263.30. Tata Steel added 1.56 per cent to ₹175.48.
Among the losers, IndiGo declined 1.23 per cent to ₹5,840.00, Cipla fell 1.04 per cent to ₹1,646.30, Eicher Motors dropped 0.68 per cent to ₹6,971.00, Eternal lost 0.46 per cent to ₹336.55, and Dr Reddy’s Laboratories slipped 0.43 per cent to ₹1,283.20.
“Indian equities opened on a strong note today, buoyed by optimism surrounding the India-US trade deal and robust domestic sentiment after the festive break. The Nifty 50 opened higher and is now testing the crucial 26,000 mark, signaling potential for a breakout to fresh lifetime highs,” said Ponmudi R, CEO of Enrich Money.
Foreign Institutional Investors extended their buying streak for the fifth consecutive session on October 21, purchasing equities worth ₹96 crore, while Domestic Institutional Investors turned net sellers, offloading equities worth over ₹600 crore on the same day.
Despite global headwinds including renewed US-China trade tensions and Washington’s decision to impose a 40 per cent trans-shipment tariff, domestic market sentiment remained resilient. “The market rally which has already begun in the festival season will accelerate enabling the Nifty to set new record highs. Unprecedented record sales during the last few days has the potential to improve corporate earnings,” said Dr. Vijayakumar.
Technical analysts remained cautiously optimistic about near-term prospects. “On the downside, immediate support is placed at 25,800, followed by 25,700, while on the upside, resistance is seen at 26,100 and 26,200 levels,” said Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking Private Limited.
The Bank Nifty showed strength after sustaining above 58,000, though it faced resistance around 58,500. “The Bank Nifty continues to exhibit strength after breaking out above 58,250, with the next resistance levels seen at 58,500-58,800, while immediate support lies between 58,250-58,000,” Ponmudi R noted.
In commodity markets, gold stabilized around $4,050 per ounce after a sharp correction, while crude oil prices remained volatile following US sanctions on Russian producers. “We expect crude oil prices to remain volatile in today’s session,” said Rahul Kalantri, VP Commodities at Mehta Equities Ltd.