Today's stock market: Thanks to steady Q2 results from banks and industry titans like Reliance Industries, the Sensex and Nifty 50 indexes have increased by roughly 3% over the last five sessions.
The Indian stock market benchmark indices, Sensex and Nifty 50, opened with strong gains on Thursday, led by optimism over reports of a likely India-US trade deal soon. The domestic equity market soared on buying across the board, despite weakness in Asian markets and an overnight decline in the US stock market.The Nifty 50 surged 188.60 points, or 0.73%, to open at 26,057.20, while the BSE Sensex opened 727.81 points, or 0.86%, higher at 85,154.15. The Nifty Midcap 100 index rose 0.2% while the Nifty Smallcap 100 index fell 0.1%, reflecting the mixed performance of the broader markets. The Bank Nifty index increased by 0.5% above the 58,200 mark.
At 11:25 AM, the Nifty 50 was trading 180.80 points, or 0.70%, higher at 26,049.40, while the Sensex was up 664.03 points, or 0.79%, at 85,090.37.
While the Nifty Realty and Nifty Oil & Gas sectors had losses, the Nifty IT, Nifty Private Bank, Nifty FMCG, and Nifty Metals sectors saw significant increases.
At 11:25 AM, the Nifty 50 was trading 180.80 points, or 0.70%, higher at 26,049.40, while the Sensex was up 664.03 points, or 0.79%, at 85,090.37.
While the Nifty Realty and Nifty Oil & Gas sectors had losses, the Nifty IT, Nifty Private Bank, Nifty FMCG, and Nifty Metals sectors saw significant increases.
In the meantime, thanks to steady Q2 reports from banks and industry titans like Reliance Industries, the benchmark Nifty 50 and Sensex indexes have both increased by roughly 3% over the last five sessions.
"There have been rumors of an impending trade agreement between the US and India, and the market's response through the Nifty 50 open supports these rumors. The Indian economy and stock markets would both benefit greatly if the proposed 15–16% tariffs on Indian exports to the US were to become law. The Nifty 50 will reach new record highs thanks to the acceleration of the market surge that started during the festival season, according to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
"There have been rumors of an impending trade agreement between the US and India, and the market's response through the Nifty 50 open supports these rumors. The Indian economy and stock markets would both benefit greatly if the proposed 15–16% tariffs on Indian exports to the US were to become law. The Nifty 50 will reach new record highs thanks to the acceleration of the market surge that started during the festival season, according to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
Recently, sales have reached unprecedented records, which could boost company profits. Short covering and recent FII buying are two things that could support the surge. "Obviously, it's good for bulls," he continued.
The Indian stock market is increasing today for the following five main reasons:
India-US Trade Agreement
According to Mint, which cited three people with knowledge of the situation, India and the US are expected to finalize a trade agreement soon that may reduce the present tariffs for Indian exports from 50% to 15% to 16%. The article claims that India may consent to progressively cut back on its imports of Russian oil, with energy and agriculture emerging as major issues of discussion in the agreement.
The Indian stock market is increasing today for the following five main reasons:
India-US Trade Agreement
According to Mint, which cited three people with knowledge of the situation, India and the US are expected to finalize a trade agreement soon that may reduce the present tariffs for Indian exports from 50% to 15% to 16%. The article claims that India may consent to progressively cut back on its imports of Russian oil, with energy and agriculture emerging as major issues of discussion in the agreement.
Positive Q2 Results
Investors' risk appetite was enhanced by the respectable Q2 results from some of the index heavyweights, such Reliance Industries. Analysts predict that the earnings trajectory will bottom out, and that the recovery in consumption will likely lead to a recovery in H2FY26. Over the past month, Nifty EPS downgrades have stabilized with a meager 1% increase.
15% is still the optimistic consensus estimate for FY27, driven in part by the energy and turnaround banks. Additionally, a strong recovery in staples is being built into the street.
Heavyweights Lead The benchmark Nifty 50 and Sensex both surpassed the 26,000 barrier thanks to a rally in index heavyweights, particularly IT firms. Several companies saw increases of more than one percent, including Infosys, HCL Technologies, Tata Steel, Axis Bank, Tata Consultancy Services, Tech Mahindra, and Hindustan Unilever.
Investors' risk appetite was enhanced by the respectable Q2 results from some of the index heavyweights, such Reliance Industries. Analysts predict that the earnings trajectory will bottom out, and that the recovery in consumption will likely lead to a recovery in H2FY26. Over the past month, Nifty EPS downgrades have stabilized with a meager 1% increase.
15% is still the optimistic consensus estimate for FY27, driven in part by the energy and turnaround banks. Additionally, a strong recovery in staples is being built into the street.
Heavyweights Lead The benchmark Nifty 50 and Sensex both surpassed the 26,000 barrier thanks to a rally in index heavyweights, particularly IT firms. Several companies saw increases of more than one percent, including Infosys, HCL Technologies, Tata Steel, Axis Bank, Tata Consultancy Services, Tech Mahindra, and Hindustan Unilever.
FII Purchases
On October 21, domestic institutional investors (DIIs) turned into net sellers, selling stocks worth more than ₹607.01 crore that same day, while foreign institutional investors (FIIs) continued their buying spree for the fifth straight session, purchasing stocks valued at ₹96.72 crore.
Brief Coverage
Following its recent pullback, the Indian stock market is also seeing a rebound in short-covering. Where there are significant short positions, this short-covering could cause large caps to rise. With the buzz surrounding the India-US trade deal, textile stocks—which were hardest hit by the penal tariffs—are probably going to see significant buying.
On October 21, domestic institutional investors (DIIs) turned into net sellers, selling stocks worth more than ₹607.01 crore that same day, while foreign institutional investors (FIIs) continued their buying spree for the fifth straight session, purchasing stocks valued at ₹96.72 crore.
Brief Coverage
Following its recent pullback, the Indian stock market is also seeing a rebound in short-covering. Where there are significant short positions, this short-covering could cause large caps to rise. With the buzz surrounding the India-US trade deal, textile stocks—which were hardest hit by the penal tariffs—are probably going to see significant buying.
On the technical front, the Nifty 50 has been able to trade near the upper bollinger band for several days due to strong momentum, which oscillators have corroborated.
Bearish candles that have developed over the past two days may be initially disregarded in this construct until a dramatic turnaround occurs. The upside target is currently set at 26,186, with 2,6800 showing up as an optimistic target. Anand James, Chief Market Strategist at Geojit Investments Limited, stated that while a downside marker is set at 257.80, a complete reversal is not anticipated today.
Bearish candles that have developed over the past two days may be initially disregarded in this construct until a dramatic turnaround occurs. The upside target is currently set at 26,186, with 2,6800 showing up as an optimistic target. Anand James, Chief Market Strategist at Geojit Investments Limited, stated that while a downside marker is set at 257.80, a complete reversal is not anticipated today.
Outlook for the Stock Market
Amruta Shinde, Technical & Derivative Analyst at Choice Broking, urged traders to stick to a cautious "buy-on-dips" strategy in the current climate of increased volatility and conflicting market cues, especially when employing leverage.
It is advised to have tight following stop-losses and book partial profits during rallies in order to efficiently manage risk. Only if the Nifty maintains above the 26,200 level may new long trades be taken into consideration. Close observation of important technical levels and world events will be essential in the upcoming sessions, even though the overall market tone is still cautiously bullish, according to Shinde.
Amruta Shinde, Technical & Derivative Analyst at Choice Broking, urged traders to stick to a cautious "buy-on-dips" strategy in the current climate of increased volatility and conflicting market cues, especially when employing leverage.
It is advised to have tight following stop-losses and book partial profits during rallies in order to efficiently manage risk. Only if the Nifty maintains above the 26,200 level may new long trades be taken into consideration. Close observation of important technical levels and world events will be essential in the upcoming sessions, even though the overall market tone is still cautiously bullish, according to Shinde.
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