Market's Strong Response
The Indian stock market reacted positively to the US-India trade deal, resulting in a substantial increase in the Sensex and Nifty indices. The Nifty was
on track for its best single-day performance in close to five years. The Sensex climbed by approximately 2,400 points, while the Nifty surpassed the 25,800 mark. The announcement of the trade deal lifted the market, removing a significant obstacle for domestic markets. The rupee also strengthened, showing its best session since November 2022. Several factors contributed to this positive trend, including the US agreeing to lower tariffs on Indian goods, thereby bolstering investor confidence and fostering a favorable market environment.
Currency's Positive Trend
The rupee gained strength as a result of the trade deal, marking its most robust session since November 2022. The domestic currency began the day trading more than 1% higher, reflecting the positive sentiment in the market. This strengthening of the rupee highlighted the positive impact of the trade agreement on the Indian economy. The increased value of the rupee against other currencies suggested a higher level of investor confidence and a more robust economic outlook for India. This upward movement mirrored the overall positive sentiment prevailing in the stock market and emphasized the comprehensive effect of the trade deal across different financial indicators.
Key Market Movers
Several stocks experienced considerable gains, driving the overall market increase. Adani Enterprises, Adani Ports and Special Economic Zone, and Jio Financial Services were among the top performers in the Nifty50 pack, with gains up to 11%. Conversely, Oil & Natural Gas Corporation (ONGC) and ITC saw declines of up to 1%. The market breadth was largely positive, with around 2,911 shares advancing compared to 435 declining, indicating broad-based participation in the rally. These movements underscored the varied impacts of the trade deal, with some companies benefiting more directly than others. The overall positive market breadth revealed that the positive sentiment was shared across a wide range of stocks, demonstrating robust investor confidence.
