Ketaan Ram Kataria
New Delhi: Indian benchmark indices rebounded sharply on Thursday, erasing early losses to end nearly 1.5% higher, driven by strong gains in financial, auto, and IT stocks. The positive turnaround in investor sentiment came amid reports of a potential zero-tariff trade agreement between India and the United States, sparking hopes of a boost in bilateral trade and economic cooperation.
The BSE Sensex surged over 900 points to settle at 74,227, while the NSE Nifty climbed 1.5% to close at 22,620. Both indices opened on a weak note, tracking mixed global cues, but staged a strong recovery in the second half of the session.
Banking heavyweights such as HDFC Bank, ICICI Bank, and SBI led the rally, supported by strong buying in auto majors like Tata Motors and Maruti Suzuki. IT giants Infosys and TCS also contributed significantly to the gains, as expectations of increased U.S. business prospects lifted tech sentiment.
Market analysts noted that optimism around the proposed trade pact could ease tariff-related concerns and enhance exports across key sectors. Meanwhile, declining crude oil prices and stable domestic macroeconomic indicators further supported the rally.
Broader markets also saw strong participation, with midcap and smallcap indices rising over 1%, reflecting broad-based investor confidence.
