Indian Stocks Rise on Fed Easing Hopes and Trade Progress

Post by : Bianca Suleiman

Indian equity markets opened the week with gains as investors reacted to weaker-than-expected US inflation data and signs of constructive trade discussions, which together improved risk appetite.

The Nifty 50 climbed 0.66% to finish at 25,966, while the Sensex added 0.67% to close at 84,779. Broader segments participated in the upswing — the midcap index rose about 1% and smallcaps were up roughly 0.93%, indicating a wide-based advance.

Soft US inflation readings reignited hopes that the Federal Reserve may move toward easing policy, and that outlook, combined with encouraging developments in US-China-India trade talks, supported markets worldwide. Domestically, expectations of firm festival-season consumption and early signs of renewed private capital expenditure activity aided sentiment.

Among index drivers, Reliance Industries, SBI Life, Bharti Airtel and Tata Steel recorded notable gains and underpinned the rally. Countering some of the move, Kotak Mahindra Bank, Infosys and Adani Ports experienced modest profit-booking after recent rallies.

Analysts highlighted that Indian equities remain sensitive to global cues. Fresh buying from foreign institutional investors and the relative strength of capex-linked sectors pointed to cautious but steady confidence among participants.

From a technical standpoint, experts see firm support for the Nifty at around 25,700, with immediate resistance near the 26,000 mark. A decisive breach above that level could pave the way toward 26,500, particularly if buying momentum in banking and large-cap names persists.

Gold prices eased as demand for havens receded while broader markets gained on reduced geopolitical tensions and signs of improved trade relations.

In sum, Monday’s session reflected a combination of global relief and domestic resilience, leaving India’s markets relatively well placed to benefit from festival demand and a potentially brighter global growth outlook into November.