The Indian market remains upbeat, driven largely by optimism surrounding trade talks with the United States. Confidence has also been boosted by the absence of further escalation in West Asia and Ukraine, along with expectations of a rate cut in the US next week. Asian sentiment was lifted further as Japan and South Korea hit record highs.
Investors are now keenly awaiting retail inflation data, due today in the US and tomorrow in India. Rising food prices are expected to push India’s inflation to 2.2%, up from 1.55% in the previous month.
Signals of trade negotiations resuming between India and the US also encouraged traders. President Donald Trump said he intended to speak to his “friend” Narendra Modi soon, with discussions expected either in Washington or New Delhi. Reports that Trump is pressuring the European Union to impose 100% tariffs on India have not unsettled Indian authorities.
In the derivatives market, Gift Nifty closed at 25,073 on Wednesday night and rose to 25,095 in early trading. This indicates a modestly positive start for Indian equities today.
European shares ended on a mixed note on Wednesday. The French index rose, while others slipped. Protests against France’s new prime minister had little impact on markets. Danish pharmaceutical giant Novo Nordisk climbed 3.7% after announcing significant job cuts.
Crucially, signals suggest that the European Union will not give in to US pressure to impose 100% tariffs on India and China. While Washington positions the move as part of its strategy to end the Ukraine war, tensions in Europe spiked after Russian drones entered Poland and were shot down. However, no further incidents followed.
US markets moved in different directions throughout Wednesday. The Dow Jones and the Russell 2000 ended in the red, while the S&P 500 and Nasdaq notched fresh record highs.
Wholesale prices in the US unexpectedly fell last month, declining 0.1% instead of the anticipated 0.3% increase. Markets now await August’s retail inflation data, with analysts expecting a 0.3% monthly rise (2.9% year-on-year) and core inflation at 3.1%.
The Dow Jones fell 220.42 points (0.48%) to close at 45,490.92. The S&P 500 gained 19.43 points (0.30%) to settle at 6,532.04, while the Nasdaq edged up 6.57 points (0.03%) to 21,886.06.
Futures were positive this morning, with the Dow up 0.08%, the S&P 0.10%, and the Nasdaq 0.14%.
A stunning rally in Oracle shares lifted US markets. The stock surged 35.95%, boosting its market value by $2.44 trillion to $9.22 trillion. The jump followed major contracts to provide cloud infrastructure for artificial intelligence firms.
Founder Larry Ellison’s wealth rose by $1 trillion in a single day, briefly surpassing Tesla’s Elon Musk to become the world’s richest man. According to Bloomberg, Musk later regained the top spot, with wealth estimates placing him at $3.84 trillion compared to Ellison’s $3.83 trillion. Forbes continues to rank Musk higher, valuing him at $4.36 trillion against Ellison’s $3.87 trillion.
Indian equities extended gains, with the Nifty rising for a sixth straight session. Though it crossed the 25,000 mark in morning trade, it failed to hold that level by the close.
IT stocks led the rally, while auto shares saw profit-booking. Public sector banks surged on hopes of restructuring, and real estate, finance, FMCG, and healthcare stocks also advanced.
The European Union’s approval of 102 Indian seafood processing plants for exports gave a strong boost to related shares. Avanti Feeds, Apex Frozen Foods, Coastal Corporation, IFB Agro, and Waterbase rose up to 20%.
Oracle’s rally in the US also lifted its Indian arm, Oracle Financial Services, which jumped 10.2%. Leading IT names including TCS, Infosys, Wipro, and HCL Tech climbed around 3%, while mid-cap peers like Mphasis, Persistent, Coforge, and Tata Elxsi gained more than 5%.
Textile exporters gained on renewed optimism about India-US trade talks. Gokaldas Exports, Arvind, Kitex Garments, Quess Corp, Trident, Vardhman, Alok, Welspun Living, Raymond, and KPR Mills advanced between 3% and 10%.
The Nifty added 104.50 points (0.42%) to 24,973.10, while the Sensex climbed 323.83 points (0.40%) to 81,425.15. The Bank Nifty rose 319.90 points (0.59%) to 54,536.00. Mid-cap and small-cap indices gained 0.93% and 0.73% respectively.
Dr Reddy’s acquired the brand and distribution rights of Stugeron, a medicine for vertigo, from Johnson & Johnson for markets outside the US.
Jupiter Wagons’ subsidiary secured a ₹113 crore axle manufacturing contract from Indian Railways.
Rail Vikas Nigam won a ₹169.5 crore project from West Central Railway.
Mazagon Dock Shipbuilders began talks with the Navy over the P-75 (I) submarine project.
Infosys’ board is set to decide today on a share buyback proposal.
Gold prices saw some profit-taking after a record surge. Spot gold closed Wednesday at $3,641.40 an ounce, up $2.30, before inching to $3,655 this morning. Futures touched $3,696.30 before retreating. In Kerala, 22-carat gold rose ₹160 to a record ₹81,040 per sovereign.
Silver gained, closing at $41.23 an ounce. Industrial metals were mixed: copper rose 0.25% to $9,846.85 per tonne, while aluminium slipped 0.29% to $2,622.40. Nickel and lead fell, while zinc and tin rose.
Rubber prices fell 2.08% to 174.10 cents per kg. Cocoa traded at $7,303.57 a tonne, coffee rose 1.31%, tea remained weak, and palm oil declined 1.52%.
The dollar index fluctuated between 97.60 and 97.93 before closing at 97.78. It edged up to 97.84 this morning.
The euro strengthened to $1.1702, the pound to $1.3534, and the yen traded at 147.32 per dollar. The US 10-year Treasury yield eased to 4.049%.
The Indian rupee closed unchanged at 88.10 per dollar. China’s yuan held steady at 7.12 per dollar, with indications that Beijing plans to gradually strengthen its currency.
Crude oil prices rose after Poland shot down three Russian drones that crossed into its territory, though no major escalation followed. Brent crude climbed 1.5% to close at $67.49 before slipping slightly to $67.45 this morning. WTI traded at $63.62, while Murban crude was at $71. Natural gas prices edged higher.
Cryptocurrencies remained volatile. Bitcoin climbed to $113,950, Ethereum to $4,350, and Solana to $225.
