Indian stocks soar for fourth day over US trade deal hopes

New Delhi [India], June 27 (ANI): Indian stock indices stayed in the green for the fourth straight session, lending support from positive global cues, relative peace on the Israel-Iran conflict front, and a possible extension of the July 9 tariff deadline by the US administration.
The White House spokesperson hinted on Thursday that the reciprocal tariff deadline may be pushed further, but added that it was a decision President Donald Trump will have to take. President Trump, meanwhile, said a "great deal" was coming up with India, boosting investors' sentiment. The Indian negotiation team is currently in the US working on a bilateral trade deal.
India's strong domestic fundamentals, a responsive RBI, and good monsoon conditions are supporting the financial markets. US markets are hitting all-time highs, and the US dollar is weakening; as a result, emerging markets like India are likely to benefit.
Sensex today closed at 84,058 points, up 303 points, while Nifty closed at 25,637 points, up 89 points. Among the sectoral indices, Nifty metal, pharma, PSU bank, oil and gas, and Nifty IT soared, while Nifty realty, consumer durables, and FMCG dipped, according to NSE data.
Indian stock markets outperformed global markets over the past few weeks, as volatility continued to reign in global markets over possible forthcoming US reciprocal tariffs. A comfortable inflation number in India also somewhat supported the domestic equity indices. Sensex is now shy away from its all-time high it had touched in September 2024.
"Key catalysts like the ceasefire in the Middle East and optimism on easing trade tensions ahead of the deadline have cleared the clouds in the minds of investors," said Vinod Nair, Head of Research, Geojit Investments Limited.
"After consecutive days of selling, FIIs have turned net buyers in the domestic market, contributing to improved market stability in the near term. Moreover, benign oil prices and a strengthening INR influenced investors to focus on domestic growth themes. Expectations of accelerating earnings, driven by resilient consumption and a relatively stable macroeconomic backdrop, are further reinforcing optimism," Nair added.
In 2024, Sensex and Nifty accumulated a growth of about 9-10 per cent each. In 2023, Sensex and Nifty gained 16-17 per cent, on a cumulative basis. In 2022, they gained a mere 3 per cent each. (ANI)