Indian equity markets experienced a solid rally on Wednesday, October 23, with the BSE Sensex crossing the historic 85,000 mark, up by 600 points, while the Nifty 50 also followed suit, gaining 140 points to trade close to its all-time high of 26,000. This significant upward movement signals strong investor sentiment in the Indian market.
Trade Deal Optimism Fuels Rally
The market's upward trajectory was primarily driven by positive statements from US President Donald Trump, who indicated that both India and the United States are actively working on a comprehensive trade deal. A Mint report, citing sources, further suggested that discussions on the trade deal are in advanced stages, with potential tariff reductions from 50% to 15%, which could Notably enhance bilateral trade relations between the two nations.
Sectoral Performance and Global Cues
Today's trading session saw strong performances from the IT and FMCG sectors, while the Nifty IT index surged by 1. 80%, while the FMCG index recorded a gain of 0. 50%, reflecting increased investor interest and optimism in these segments. Despite the domestic surge, global markets presented a mixed picture. Asian markets showed varied trends, with South Korea's Kospi rising, while Japan's Nikkei, Hong Kong's Hang Seng, and China's Shanghai Composite closed lower, while uS markets also ended lower on October 22. In India, Foreign Institutional Investors (FIIs) made net purchases worth ₹96. 72 crore on October 21, though Domestic Institutional Investors (DIIs) were net sellers at ₹607 crore. FIIs have bought ₹300. 41 crore worth of shares in October so far.
Muhurat Trading Performance
Earlier, during the special Muhurat Trading session on October 21 for Diwali, the Sensex closed up 63 points at 84,426, and the Nifty gained 25 points to end at 25,869. Since last year's Muhurat Trading, the Sensex has climbed 5, while 90% (4702 points), and the Nifty has seen a 6. 44% (1565 points) increase, underscoring the resilience and growth potential of the Indian stock market.
