Indian Markets Surge Amid US-China Trade Optimism: Sensex and Nifty Gain

In a striking recovery, Indian stock indices surged on the final trading day of the week, with both the Sensex and Nifty climbing nearly 1%. This uplift was driven by positive sentiments surrounding ongoing US-China trade discussions, as the BSE Sensex closed at 81,721.08, climbing 769.08 points or 0.95%, while the Nifty 50 at the NSE rose to 24,853.15, gaining 243.45 points or 0.99%.

Sector-wise, the market recorded impressive gains in Consumer Goods, IT, Consumption, and Financial Services, while pharmaceutical and healthcare sectors continued to face challenges. The Nifty commenced the session flat at 24,639 but briefly dipped to 24,614 before a robust recovery saw it peak at an intraday high of 24,909.

The optimism primarily stems from the renewed discussions between the US and China to keep communication channels open, commented Sundar Kewat, a Technical and Derivatives Analyst with Ashika Institutional Equity. Nonetheless, concerns about foreign fund outflows, exacerbated by rising US Treasury yields, limited the day's gains.

Dr. Praveen Dwarakanath from Hedged.in noted that the Nifty maintains a bullish stance toward the 25000 level, with immediate resistance at 25200 and support at 24500. The index has shown strong momentum, benefitting from its 20-day moving average. A widening Bollinger band also suggests the potential for a continued rally.

In derivatives trading, 183 stocks advanced while 38 saw declines, with Solar Industries, Sun Pharma, Grasim, Angel One, and ABFRL exhibiting significant open interest build-up. Despite the market's enthusiasm, experts caution that foreign fund outflows are a lingering concern for investors. (ANI)

(With inputs from agencies.)