Indian Stock Indices Surge Amid India-US Trade Deal Speculations

Following three consecutive sessions of decline, Indian stock indices bounced back on Wednesday, spurred by buying at comparatively lower price levels. This rebound comes in the wake of a series of declines, attributed to profit booking activities.

Looking ahead, investors are closely monitoring developments in the India-US trade agreement negotiations. Recent discussions between India's Commerce Minister Piyush Goyal and US Commerce Secretary Howard Lutnick have stirred optimism about accelerating the bilateral trade deal's initial phase. On Wednesday, the Bombay Stock Exchange's Sensex climbed to 81,596.63 points, gaining 410.20 points or 0.51%, while the National Stock Exchange's Nifty rose by 0.52% to close at 24,813.45 points. Most sectoral indices were in the positive, with Nifty Pharma and Nifty Realty leading the gains.

Nifty India Defence saw a significant increase of 3.4%. Meanwhile, gold, a crucial financial sector indicator, rose by 0.9%, trading at USD 3,318 per ounce. Currently, Sensex remains more than 4,000 points below its record high. Despite the positive market sentiment, Vinod Nair from Geojit Investments Limited warned of the potential risk posed by a 'sell on rallies' approach amid ongoing uncertainties related to the India-US trade negotiations. He also noted concerns over recent developments in the US, including a credit rating downgrade and tax cut plans potentially widening the fiscal deficit, possibly impacting upcoming Fed policy decisions.

In the near future, significant economic indicators for the Indian stock markets include the upcoming GDP figures and global economic signals. Official GDP information for Q4 2024-25 is slated for release on May 30 by the National Statistics Office, providing insights into the annual growth rate projected at 6.5% for 2024-25.

(With inputs from agencies.)