IT Rally Lifts Sensex, Nifty Amid Positive Buzz Around US-India Trade Talks

Markets Open Higher as IT Stocks Lead on US-India Trade Deal Hopes.

Benchmark indices opened in positive territory on Wednesday, buoyed by optimism around a potential trade agreement between India and the United States. A rally in IT stocks supported early gains, although analysts remain cautious about the market’s ability to sustain momentum.

As of 9:28 am, the BSE Sensex was up 103.13 points at 83,800.42, while the NSE Nifty50 rose 21 points to 25,562.80.

The rally was led by information technology and pharma stocks. Infosys gained 1.79%, emerging as the top gainer on the Sensex, followed by TCS (up 0.93%), Sun Pharma (0.74%), Tata Steel (0.72%), and NTPC (0.71%).

On the downside, Bajaj Finserv fell 1.09%, followed by Asian Paints (-0.95%), Bharat Electronics (-0.71%), Bajaj Finance (-0.59%), and Eicher Motors (-0.54%).

Sectoral View: IT Outperforms, FMCG and Realty Lag
Most sectoral indices opened in the green. Nifty IT led the gains, rising 1.03%, followed by Nifty Metal (+0.52%) and Nifty PSU Bank (+0.26%). Other notable gainers included Nifty Oil & Gas (+0.23%), Nifty Financial Services (+0.18%), and Nifty Auto (+0.16%).

Three sectors opened in the red:

• Nifty FMCG (-0.25%)
• Nifty Realty (-0.21%)
• Nifty Healthcare Index (-0.06%)

Volatility also eased slightly, with the India VIX down 0.29%, indicating steady investor sentiment.

Analyst View: Cautious Optimism Prevails
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said optimism surrounding a potential US-India trade deal may help the market test upper resistance levels, but doubts remain over sustainability.

“There are no signs yet of a strong earnings rebound. June’s GST collections indicate weak consumption, and auto sales remain subdued. With valuations already stretched, a prolonged rally seems unlikely,” he noted.

On global cues, Vijayakumar added that the resilience of the U.S. economy and corporate earnings is surprising, but the U.S. Federal Reserve’s firm stance against near-term rate cuts could temper bullish sentiment.