Dalal Street witnessed a recovery on Tuesday. Both benchmark indices, Sensex and Nifty, rallied ahead today to make up for the losses incurred in the previous trading session.
The BSE Sensex settled the session at 82,381, soaring almost 600 points, while the NSE Nifty50 closed trading above 25,250, climbing close to 200 points.
US-India Trade Talks Uplift Domestic Markets
This renewed sentiment in the markets was backed by optimism surrounding the trade deal negotiations between India and the US, scheduled to resume today. Chief US negotiator Brendan Lynch arrived in New Delhi to lead the discussions, fuelling hopes of progress.
Notably, in morning market hours, the Sensex was up 184 points, or 0.23 per cent, at 81,970, while the Nifty advanced 47 points, or 0.19 per cent, to trade at 25,117, around 9:25 AM.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The bold reforms, both fiscal and monetary, implemented this year have started yielding results and is likely to gather momentum in near future. An India-US trade agreement without the penal tariffs can be a shot in the arm for markets.”
Markets in the US are currently factoring in a 96.4 per cent probability of a 25-basis-point rate cut at the Federal Reserve’s September 17 meeting, with expectations of further easing before year-end. Meanwhile, foreign institutional investors sold equities worth Rs 1,268 crore on Monday, while domestic institutional investors were net buyers with inflows of Rs 1,933 crore.
