Sensex Soars as Positive Trade News Boosts Market Confidence

Market Overview

Mumbai: The Sensex index surged by nearly 540 points, while the Nifty index closed above the 25,200 mark on Wednesday, buoyed by a favorable trend in Asian markets following Japan's trade agreement with the United States.

The BSE Sensex, comprising 30 stocks, rose by 539.83 points or 0.66 percent, finishing at 82,726.64. At its peak during the day, it climbed 599.62 points or 0.72 percent to reach 82,786.43.

The NSE Nifty also saw gains, increasing by 159 points or 0.63 percent to close at 25,219.90.

Key gainers among Sensex companies included Tata Motors, Bharti Airtel, Bajaj Finance, Maruti, Bajaj Finserv, ICICI Bank, HDFC Bank, and Reliance Industries.

Conversely, Hindustan Unilever, UltraTech Cement, Bharat Electronics, and ITC were among the stocks that lagged.

In the Asian markets, Japan's Nikkei 225 index experienced a significant rise of 3.51 percent after US President Donald Trump announced a trade deal with Japan, which includes a 15 percent tax on imports from the country. Other Asian indices, including South Korea's Kospi, Shanghai's SSE Composite, and Hong Kong's Hang Seng, also closed positively.

"Investor sentiment has surged globally due to the optimistic news surrounding the US-Japan trade agreement, raising hopes for additional international deals soon," stated Ashika Institutional Equities.

European markets were also trading positively, while US markets had a mostly higher close on Tuesday.

Foreign Institutional Investors (FIIs) sold equities worth Rs 3,548.92 crore on Tuesday, as per exchange data, while Domestic Institutional Investors (DIIs) purchased stocks worth Rs 5,239.77 crore in the previous session.

The global oil benchmark, Brent crude, fell by 0.45 percent to USD 68.29 per barrel.

The rupee continued its downward trend for the sixth consecutive session, closing down 3 paise at 86.41 against the dollar, influenced by a strong US currency and foreign fund outflows.