The Indian stock market witnessed a massive surge today, with the Sensex rising more than 3% to 82,000 and the Nifty rallying past 24,800, marking the biggest single-day gain since June 6. The rally was fueled by two major geopolitical and economic developments: a ceasefire agreement between India and Pakistan and the signing of a historic trade deal between the United States and China.
Adani Enterprises & Shriram Finance: Top Gainers
Among Nifty constituents, Adani Enterprises and Shriram Finance stole the show, both surging over 7% and emerging as the top gainers of the day. The rally in these stocks reflects renewed investor confidence in heavyweight industrials and financial services amid easing geopolitical tensions.
IT Stocks Bounce Back as Recession Fears Ease
IT stocks also saw a strong rebound, with TCS, Infosys, and HCL Tech each gaining more than 5%. The tech rally was directly driven by the US-China trade deal, which has significantly reduced recession fears in the United States.
Until recently, market experts had warned that escalating tensions in the US-China trade war could lead to a global slowdown, particularly affecting export-dependent sectors like Indian IT. However, today's deal offers relief:
The US has agreed to cut tariffs on Chinese goods from 145% to 30% for a 90-day period.
In return, China will reduce tariffs on American imports from 125% to 10%.
This bilateral de-escalation has effectively removed the immediate threat of a US recession, boosting investor sentiment globally.
Banking Stocks Join the Rally
The banking sector also joined the rally in full force. Bank Nifty surged more than 3%, driven by strong gains in heavyweight private banks. HDFC Bank and ICICI Bank both jumped more than 3.5%, while Axis Bank climbed 4%. The financial sector’s strong performance further strengthened market breadth and helped fuel the overall rally.
Gold Prices Dip as Risk Sentiment Improves
In a notable reversal, gold prices fell 4% to $3,224, reflecting a shift away from safe-haven assets. Until recently, gold had surged on the back of rising US-China tensions. However, with the trade deal now in place, risk appetite has returned, and investors are rotating funds from gold to equities.
Global Cues Positive: US Futures Surge
The optimism isn’t confined to Indian markets. Dow futures jumped over 2%, while the Nasdaq Index soared more than 4%, indicating strong bullish sentiment in the US as well. With recession fears subsiding, global equity markets are breathing a collective sigh of relief.
