Market Euphoria as Sensex Climbs on Trade Deal Hopes

US President Donald Trump's remarks about a potential zero-tariff deal with India during his West Asia tour have ignited a surge in market optimism. This positive sentiment propelled the Nifty to close above the 25,000 mark, marking a significant milestone for investors.

The decline in domestic inflation figures, hinting at a possible interest rate cut by the RBI in June, further buoyed the spirits on Dalal Street. Market analysts noted the dual impact of favorable domestic and international developments on the day's trading session.

Record Highs and Investor Gains

After a hesitant start, the Sensex rallied impressively, closing 1,200 points higher at 82,531, while the Nifty gained 395 points to settle at 25,062. Both indices reached seven-month highs, reflecting the robust confidence among investors.

Vinod Nair of Geojit Investments highlighted the market's strong rebound, attributing it to lower domestic inflation and the positive cues from the US regarding trade relations with India. The anticipation of reduced operational costs and a more lenient monetary policy has further fueled the market's upward trajectory.

Foreign Investment Influx

The day's rally was significantly supported by foreign investors, who injected Rs 5,393 crore into the stock market. In contrast, domestic funds were net sellers, offloading Rs 1,668 crore worth of stocks. The session concluded with investors' wealth increasing by Rs 5.3 lakh crore, elevating the BSE's market capitalization to Rs 440.2 lakh crore.

Leading the charge were Reliance Industries, ICICI Bank, and HDFC Bank, with only IndusInd Bank among the Sensex constituents ending the day in the red.