Mumbai, September 17 : Indian equity markets saw a strong rebound on Tuesday, driven by renewed investor optimism surrounding the revival of trade talks between India and the United States. After a prolonged pause in discussions, the diplomatic thaw lifted sentiment across key sectors, pushing benchmark indices sharply higher.
The BSE Sensex jumped 594.95 points, or 0.73%, to close at 82,380.69, while the broader NSE Nifty gained 169.90 points, or 0.68%, ending the session at 25,239.10. During the day, the Sensex had risen as much as 657 points before paring some gains by the close.
Key Drivers Behind the Rally
- Resumption of India–US trade negotiations, after months of deadlock due to tariff disputes, fueled positive sentiment.
- Firm global cues, with major Asian and US indices trading in the green, added to the bullish momentum.
- Renewed hopes for easing trade tensions reduced policy uncertainty for exporters and global investors.
- Sectoral & Stock Performance
A broad-based rally was observed across multiple sectors:
- Services led the gains, climbing 1.67%.
- Telecom, auto, industrials, tech, and consumer discretionary stocks also posted strong gains, with sectoral indices rising between 0.9% to 1.5%.
- Kotak Mahindra Bank was the top gainer among Sensex constituents, advancing 2.55%.
- Other notable performers included Larsen & Toubro, Mahindra & Mahindra, Maruti Suzuki, Bharti Airtel, and Tata Steel.
- On the flip side, FMCG stocks lagged, with Asian Paints and Bajaj Finance among the few decliners.
Broader Market Movement
- The rally extended beyond large caps:
- The BSE SmallCap index rose 0.66%.
- The MidCap index added 0.62%, indicating strong participation from retail and institutional investors alike.
Investor Outlook
Market sentiment remains upbeat as the reopening of trade dialogue between two major economies reduces geopolitical friction. With key macro triggers like the upcoming US Federal Reserve policy meeting on the horizon, investors are cautiously optimistic about continued market resilience in the short term.