Dalal Street opened the week on a positive note, with Nifty 50 extending gains for the fourth consecutive session amid hopes of easing trade tensions between India and the US. At 9:15 a.m., the Sensex rose 288.85 points, or 0.36 percent, to 80,999.61, while the Nifty added 83.10 points, or 0.34 percent, reaching 24,824.10.
Sectoral gains were led by Nifty Metal, up 1.1 percent, and Nifty Auto, up 1.03 percent. Nifty Realty and Nifty IT also advanced 0.75 percent and 0.51 percent, respectively. Other indices including Nifty Pharma, FMCG, PSU Bank, Energy, Infra, and Media posted modest gains between 0.07 percent and 0.40 percent, signaling a broadly positive start to trading.
Auto stocks surged following a positive note from Bank of America Securities, which highlighted that drivers for an auto upcycle are in place, with expected volume growth of 8 percent CAGR from FY25 to FY28. Metal stocks also climbed after Morgan Stanley raised target prices for key steel companies, anticipating higher domestic steel prices due to improved demand.
The backdrop of US-India trade relations remains a key factor influencing markets. Prime Minister Narendra Modi responded to President Donald Trump’s remark to “always be friends” by affirming a positive strategic partnership. However, market experts note that uncertainty persists due to Trump’s comments on possible secondary sanctions against Russia and ongoing criticism from trade advisor Peter Navarro.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the uncertainty around IT export restrictions and tariff measures could continue to weigh on investor sentiment. While GST reforms had briefly boosted markets, the optimism was partly priced in before rate cuts took effect.
Technically, Nifty has remained range-bound between 24,500 and 25,000. Dhupesh Dhameja of SAMCO Securities explained that a decisive move above 24,900 could trigger a strong rally, while a drop below 24,500 might start a bearish trend. Until then, he suggests a “range trading” approach, with 24,400 as support and 24,900 as resistance.
Investors will continue watching trade developments and key economic indicators to gauge the market’s next direction.
