Global markets surged on hopes of a US-European Union trade agreement. Asian equities followed Wall Street’s lead and opened higher on Thursday, with broad expectations that Indian markets would continue their upward momentum.
India is set to sign a trade deal with the United Kingdom today, which is expected to ease the entry of professionals into the UK more than it benefits goods exports. British investments in India may also rise. In 2023–24, India exported only ₹14,500 crore worth of goods to the UK, while imports stood at ₹8,600 crore. On the US-India front, President Trump is expected to take a prompt decision on the proposed trade pact.
In the derivatives market, Gift Nifty closed at 25,292.50 on Wednesday night and rose to 25,305 in early trade on Thursday, indicating a firm start for Indian equities.
In the derivatives market, Gift Nifty closed at 25,292.50 on Wednesday night and rose to 25,305 in early trade on Thursday, indicating a firm start for Indian equities.
European markets closed higher on Wednesday, with indices in all major countries—except Germany—rising over 1 percent, driven by optimism around a possible US-EU trade agreement. Automobile stocks led the rally.
US markets soared on Wednesday. The S&P 500 and Nasdaq ended at record levels, fuelled by hopes of tariff-free access for American goods in countries signing new trade deals, including the UK, Japan, Indonesia, and the Philippines. While these nations are expected to ease import duties on US goods, the US is reportedly demanding reciprocal investment access—drawing criticism for the lopsided nature of the proposed agreements.
The Dow Jones surged 507.85 points (1.14%) to close at 45,010.29. The S&P 500 gained 49.29 points (0.78%) to end at 6,358.91. The Nasdaq Composite rose 127.33 points (0.61%) to 21,020.02.
US futures showed mixed trends on Thursday morning: Dow futures slipped 0.27 percent, while S&P and Nasdaq futures edged up 0.08 percent and 0.35 percent, respectively.
Japan’s Nikkei jumped 2 percent, and the broader Topix index touched a record high. South Korean and Australian markets also gained.
The US-Japan trade pact appears to have added momentum to India's own trade hopes. Indian officials estimate tariffs may drop significantly from the current 26 percent level. This optimism powered Wednesday’s market rally.
Banking, financial, auto, and healthcare sectors led the gains, while realty, media, and FMCG stocks faced selling pressure.
Despite heavy foreign institutional selling in the cash market, indices stayed firm. FIIs offloaded shares worth ₹4,209.11 crore, while domestic institutions bought ₹4,358.52 crore worth of equities.
The Nifty rose 159 points (0.63%) to close at 25,219.90. The Sensex jumped 539.83 points (0.66%) to 82,726.64. Bank Nifty surged 454.45 points (0.80%) to 57,210.45. The Nifty Midcap 100 index climbed 203.70 points (0.34%) to 59,307.10, while the Smallcap 100 index was nearly flat, slipping 0.15 points to 18,893.20.
The advance-decline ratio (ADR) favoured declines on the BSE, where 2,097 stocks fell against 1,933 advances. On the NSE, however, gainers (1,497) outnumbered losers (1,460).
On the NSE, 71 stocks hit 52-week highs, while 25 touched new lows. As many as 79 stocks hit upper circuit limits, while 58 were locked in the lower circuit.
The US-EU trade agreement is expected to be announced in the coming days. Its content will likely guide the near-term trajectory of Indian equities. If the Nifty sustains above 25,250, a rally towards 25,400–25,550 is anticipated. Support lies at 25,120 and 25,030, with resistance at 25,240 and 25,330.
Infosys Technologies reported 7.5 percent growth in revenue and 8.7 percent rise in net profit for the first quarter. The company raised its full-year dollar revenue guidance to 1–3 percent from 0–3 percent earlier. It secured contracts worth ₹38,000 crore. Operating margin fell to 20.8 percent from 21.1 percent.
Dr Reddy’s Laboratories posted weak growth due to flat revenue from the US, though net profit increased 11 percent.
Bajaj Housing Finance saw a 33.4 percent rise in net interest income and 21 percent growth in net profit. Gross NPA stood at 0.3 percent.
Tata Consumer Products reported 9.8 percent growth in revenue and 15 percent rise in profit, below market expectations.
Jeh Wadia, second son of Bombay Dyeing chairman Nusli Wadia, is set to rejoin the family business as MD. Jeh had earlier stepped away following differences with his father and had relocated to London. With plans to turn Bombay Dyeing into a major real estate player, the 51-year-old’s return pushed the stock up 13.43 percent on Wednesday.
Tilaknagar Industries acquired Imperial Blue whisky from French firm Pernod Ricard for ₹4,150 crore. The brand is India’s third-largest whisky label, with 90 percent of global sales from the Indian market. Annual sales total 22.4 million cases.
Gold fell 1.2 percent on Wednesday to $3,387.70 an ounce, down from Tuesday’s $3,432. The US-Japan trade deal and expectations of a US-EU pact soothed fears of a trade war, dampening demand for safe-haven assets. Gold rose slightly to $3,392 in early Thursday trade before softening.
In Kerala, gold set a new record on Wednesday, rising ₹760 per sovereign to ₹75,040. The previous record was ₹74,560. Global cues point to a possible dip in domestic prices today.
Silver closed at $39.08 per ounce on Wednesday.
In global commodity markets, rubber gained 0.53 percent to 171.30 cents/kg. Cocoa surged 3.82 percent to $8,460 per tonne. Coffee rose 1.15 percent, while tea dropped 2.09 percent. Palm oil declined 0.37 percent.
The US dollar index extended its downtrend, closing at 97.21 on Wednesday and dipping to 97.15 Thursday morning. The euro strengthened to $1.1776, and the pound rose to $1.3585. The yen appreciated to 145.92 per dollar.
Despite a weaker dollar globally, the rupee weakened slightly, with the greenback rising four paise to close at ₹86.41. China’s yuan rose to 7.14 per dollar. US 10-year Treasury yields climbed to 4.39 percent as bond prices declined.
Crude oil, cryptos
Crude prices eased. Brent crude hovered around $68.70 per barrel. In early Thursday trade, WTI was at $65.46, and Murban crude at $71.46. Natural gas edged higher.
Cryptocurrencies were volatile, with Bitcoin trading just below ₹1,19,000 and Ether hovering near ₹3,635.
