Global sentiment improved following signals of a tariff reversal by former US President Donald Trump and indications of a NATO deal, supporting risk appetite across markets. This was reflected in the Indian equity market on Thursday, with benchmark indices Sensex and Nifty opening sharply higher.
Indian equities began the session with b gains, offering relief to investors amid recent global uncertainty. Market sentiment improved after Donald Trump indicated a softer stance on proposed tariffs on European NATO countries and announced a framework for a deal with NATO concerning Greenland. The developments supported positive sentiment across global markets and were mirrored in early Indian trading.
At the opening bell, buying interest was visible across the market. The BSE Sensex rose 631.39 points to 82,541.02, while the NSE Nifty advanced 157.20 points to trade at 25,314.70. The Nifty sustaining levels above the 25,300 mark was seen as a key technical development.
The market had remained under pressure over the past several sessions, with investors adopting a cautious stance. Thursday’s early gains indicated a shift in sentiment, with participants returning to risk-taking.
Global markets had been weighed down in recent weeks by trade tensions and geopolitical uncertainty, particularly concerns over potential tariffs between the United States and Europe. Trump’s indication that the threat of tariffs on European NATO countries could be withdrawn, along with the announcement of a NATO deal framework related to Greenland, provided reassurance to investors.
These signals raised expectations that trade frictions between the US and Europe could be avoided for now, supporting international trade and investment sentiment. The improved backdrop was reflected across Asian and emerging markets, including India.
Asian markets also traded higher on Thursday, with gains seen across Japan, South Korea, and other major regional indices. The positive regional cues supported confidence in Indian equities.
US equities had staged a b rally overnight, with the S&P 500 index recording its largest single-day percentage gain in the past two months. The move suggested renewed investor interest in risk assets, which extended support to emerging markets and was reflected in the Indian market’s opening trend.
Market participants said the rally reflected an improvement in sentiment rather than a single-session reaction. Reduced signals of global trade tension typically prompt investors to return to equities, a trend visible in Thursday’s opening trade.
Additionally, following recent declines, valuations had turned relatively attractive, leading investors to step in after positive global developments. This contributed to the sharp early gains in both Sensex and Nifty.
On the sectoral front, buying was seen in banking, information technology, and pharmaceutical stocks. Banking shares, including major private and public sector lenders, provided support to the benchmarks.
IT stocks also attracted investor interest, aided by positive global cues and overnight gains in US markets. Select pharmaceutical stocks advanced as well, particularly companies where expectations were linked to earnings and business updates.
Among individual stocks, InterGlobe Aviation (IndiGo) saw activity, while Dr Reddy’s Laboratories, Biocon, and HPCL were also in focus. Shares of CESC and Eternal witnessed movement amid company-specific developments and earnings-related expectations. Buying and profit-taking were both visible in select counters, though overall market sentiment remained supportive.
From a technical perspective, Nifty holding above the 25,300 level is considered significant, as this mark had emerged as a resistance zone in recent sessions. Trading above this level indicated scope for an extended upside, though market participants noted that volatility could persist in the coming sessions.
