Rathi also highlighted the potential for India to negotiate favorable trade deals, similar to those secured by Japan and South Korea, which could further strengthen market sentiment. However, he cautioned that sustained growth would depend on a rebound in corporate earnings, likely from the first quarter of FY26.
On Thursday, the Sensex closed at 78,553.20, up 1,508 points (1.96%), while the Nifty ended at 23,851.65, gaining 414 points (1.77%). All sectoral indices closed in positive territory, with telecom, PSU banks, oil & gas, pharma, and auto stocks leading the gains. Major gainers in the Nifty50 pack included Bharti Airtel, ICICI Bank, Bajaj Finance, and Sun Pharma.
Vinod Nair, Head of Research, Geojit Investments said that a strong rally in large-cap stocks was observed today, primarily driven by financials, amid expectations of improved margins stemming from changes in savings deposit interest rates.
“Positive sentiment was further supported by a reversal in FII flows, although the sustainability of this trend remains uncertain. Nonetheless, optimism surrounding the domestic market persists, bolstered by the expectation of a favourable outcome from US-India trade negotiations and a relatively minimal disruption from the US-China trade tensions. Additionally, a moderating inflation trajectory towards more comfortable levels is further enhancing market sentiment,” stated Nair.