Stock Market Rallies on Foreign Fund Inflows and India–US Trade Deal
Sensex, Nifty trade higher in early session; IT stocks drag gains
New Delhi: Benchmark indices Sensex and Nifty traded higher in early deals on Wednesday, extending the previous session’s strong rally, driven by foreign fund inflows and positive sentiment following the India–US trade agreement. However, sharp losses in IT stocks capped the upside.
The 30-share BSE Sensex rose 68.49 points to 83,816.96 in early trade, while the 50-share NSE Nifty gained 51.90 points to 25,779.45. Among Sensex constituents, Mahindra & Mahindra, Power Grid, Reliance Industries, NTPC, ICICI Bank and ITC were the top gainers.
On the flip side, Infosys, Tata Consultancy Services (TCS), HCL Tech and Tech Mahindra were among the biggest losers, falling up to 5 percent. The BSE IT index slipped 4.95 percent in early trade to 35,311.34.
According to exchange data, Foreign Institutional Investors (FIIs) turned buyers on Tuesday, purchasing equities worth ₹5,236.28 crore. Domestic Institutional Investors (DIIs) also bought shares worth ₹1,014.24 crore.
India and the United States have agreed on a framework for a trade deal under which Washington will reduce tariffs on Indian goods from the existing 50 percent to 18 percent. The announcement is significant as the US had imposed steep tariffs on Indian goods entering American markets from August 27, 2025.
In Asian markets, South Korea’s Kospi was trading higher, while Japan’s Nikkei 225, China’s Shanghai SSE Composite and Hong Kong’s Hang Seng index were trading lower.
US markets closed lower on Tuesday. Commenting on market sentiment, VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, said, “The rally triggered by the India–US trade deal will face challenges in sustaining momentum. Selling pressure in IT stocks in the US market yesterday is likely to drag down the Indian IT index as well, limiting the upside in domestic markets.”
Meanwhile, global oil benchmark Brent crude rose 0.68 percent to USD 67.77 per barrel.
In the previous session, the Sensex had surged 2,072.67 points or 2.54 percent to close at 83,739.13, while the Nifty jumped 639.15 points or 2.55 percent to settle at 25,727.55.
