Indian benchmark indices opened higher on Wednesday, supported by reports of an imminent India–US trade deal and exit polls from Bihar suggesting a clear majority for the NDA. As of 9:25 AM, the Sensex rose 496 points (0.59%) to 84,367, while the Nifty 50 climbed 147 points (0.58%) to 25,842.
The broader market indices mirrored the positive trend, with the Nifty Midcap 100 up 0.55% and the Nifty Smallcap 100 gaining 0.61%.
Among major gainers in the Nifty pack were Max Healthcare and Tech Mahindra, while Maruti Suzuki and Trent registered minor losses.
Almost all sectoral indices traded in positive territory, barring Nifty FMCG, which showed mild weakness. Nifty IT and Nifty Oil & Gas led the rally, up 1.26% and 0.95%, respectively.
Market experts noted that the improving geopolitical and trade environment between India and the US, coupled with optimistic domestic political signals, has boosted investor morale.
However, they cautioned that the uptrend may lack sustained momentum in the short term.
“Reports of a forthcoming India–US trade deal and favourable Bihar exit polls have lifted market sentiment. While this strengthens the bulls, a decisive breakout will depend on sustained buying,” said market watchers.
Investor Activity
According to analysts, Foreign Institutional Investors (FIIs) may continue to sell at higher levels amid volatility in global AI-related trades.
On Monday, FIIs sold equities worth ₹803 crore, whereas Domestic Institutional Investors (DIIs) were net buyers to the tune of ₹2,188 crore.
From a broader perspective, analysts remain optimistic about India’s economic trajectory.
With strong GDP growth and robust earnings expectations for FY27, sectors such as financials, consumption, and defence are expected to lead the next phase of the market rally.
Most Asia–Pacific markets traded higher in early sessions, tracking a mixed close on Wall Street.
Hopes that the US government shutdown might soon be resolved lent support to investor sentiment, even as AI stocks struggled.
Overnight, US indices ended mixed — the Nasdaq slipped 0.3%, the S&P 500 added 0.18%, and the Dow Jones advanced 1.2%.
In Asia, Hong Kong’s Hang Seng Index gained 0.56%, and South Korea’s Kospi jumped 0.84%.
Meanwhile, China’s Shanghai Composite dipped 0.23%, Shenzhen fell 1%, and Japan’s Nikkei edged down 0.21%.
Outlook
The current market momentum reflects cautious optimism, supported by both domestic and international cues.
While traders expect near-term volatility, improving fundamentals and diplomatic developments between India and the US are likely to sustain positive sentiment in the weeks ahead.
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