Indian Stock Market Today: A Spectacular Rally

Indian equity benchmarks, Nifty50 and BSE Sensex, experienced a significant surge in trade on Thursday, reaching several-month highs. Nifty50 notably crossed the 25,000 mark, while BSE Sensex closed above 82,000.

Nifty50 ended the day at 25,062.10, up by almost 400 points or 1.60%. BSE Sensex concluded at 82,530.74, marking a 1,200 point increase, equivalent to a 1.48% rally.

Top 5 Reasons Behind the Market Rally

1) Zero-tariff trade deal discussions with the US
US President Donald Trump announced, "India offered US a deal, basically zero tariffs," signaling positive developments in trade negotiations.

2) Oil Price Plunge
Oil prices dropped by more than $2, easing inflation pressures and reducing India's import expenses.

3) Gold Price Decline
Gold futures fell to a one-month low, indicating reduced demand for safe-haven investments and improved market sentiment.

4) FII Investment Surge
Foreign institutional investors have poured approximately Rs 50,000 crore into Indian equities since mid-April.

5) Cooling Inflation
Both US and India reported lower-than-expected inflation figures, increasing the likelihood of rate cuts and supporting economic expansion.

Market Sentiment and Future Outlook

"The market staged a robust rebound, driven by declining domestic inflation and positive signals from the US regarding a potential trade agreement," said Vinod Nair of Geojit Investments. Investors are now keenly awaiting the Federal Reserve Chair's upcoming speech for further policy clarity.