Indian equities opened strongly on Thursday, extending their upward trajectory led by firm global cues, renewed foreign investor interest, and rising optimism related to the India–US trade deal. The Nifty50 began the session near 26,095, while the BSE Sensex opened over 150 points higher at 85,346 as broad-based buying was seen across key sectors.
The market sentiment turned upbeat after various global financial institutions upgraded the outlook on India. According to market strategists, the earlier theme of “strong macros but weak micros” has given way to “strong macros and improving micros,” indicating healthier corporate earnings and better sectoral performance. It has made India more attractive for global investors, who now see the market as “fairly valued and buyable.”
The positivity was reflected in the institutional flows too. Foreign institutional investors, who had been relatively subdued for many days, emerged as net buyers and bought equities worth ₹1,580 crore in the previous session. Domestic institutional investors, too, showed strong interest and added ₹1,360 crore to their positions. The collective buying power thus gave a strong underpinning for Thursday’s rally.
A strong rebound in Asian markets added further support. Japan’s Nikkei jumped more than 3.5%, while the KOSPI in South Korea increased about 2.5%, tracking optimism driven by upbeat tech-sector sentiment and robust global earnings. Bitcoin, too, remained above the $92,000 mark, reflecting broad improvement in risk appetite.
Back home, Bank Nifty continued its upward trajectory and is expected to have more room to rally, supported by healthy fundamentals and favorable valuations. Large-cap stocks, especially those in banking and financials, might continue to outshine others as investors rotate away from high-valued small- and mid-cap counters, said market experts.
Another powerful catalyst for Dalal Street is the renewed momentum in the India–US trade negotiations. Government officials have indicated that a bilateral agreement is “inches closer” despite ongoing geopolitical complexities. A breakthrough is expected to ease tariff pressures, boosting export-linked sectors like chemicals, engineering, and IT services, with potential upsides estimated at 20–30% in select stocks upon completion of the deal.
But despite the optimism, market watchers advise caution. Global uncertainties, such as US tariff policies and volatility in the technology sector, continue to pose near-term risks.
Overall, Thursday’s market performance highlights growing confidence in India’s economic resilience, improved institutional flows, and supportive global sentiment—all setting the tone for possibly a strong finish to the month.
