Sensex, Nifty- Indian Stock Market July, 3: India’s benchmark equity indices started trading on high on Thursday. The rise inSensex and Nifty indicies is being attributed to the strong cues from Asian markets.
A potential India-US trade deal has also helped the markets turn green.
The BSE Sensex gained 383.61 points, or 0.46 percent, to close at 83,793.30, while the NSE Nifty advanced 110.30 points, or 0.43 percent, to settle at 25,563.70.
Sensex, Nifty Surge: Top Gainers on July 3
Leading the market rally were stocks such as Oil & Natural Gas Corporation, Mahindra & Mahindra, Apollo Hospitals Enterprise, Maruti Suzuki India, and Hindalco Industries, which rose up to 2 percent. Analysts attribute the surge to various factors including:
India-US Trade Deal Likely To Be Inked
Investor sentiment was lifted by expectations of a possible trade deal between India and the United States. The optimism followed US President Donald Trump’s announcement on Wednesday of a trade agreement with Vietnam, which will lower tariffs on Vietnamese goods to 20 percent from 46 percent.
The US-Vietnam trade deal has sparked hopes that US can offer similar tariff relaxations to India also . Reuters has reported that officials from India and US nations are working to finalize a deal, though issues concerning dairy and agriculture remain unresolved.
According to stock market analysts, Nifty is likely to trade in the 25,200–25,800 range unless a major trigger emerges. The breakthrough is being attribute to the formal announcement of the India-US trade deal.
India and the US reportedly could sign the trade dea within the next 48 hours.
Positive Global Market Trends Behind The Sensex, Nifty Surge
Global markets offered additional support to therise of equity indicies in India. Most Asian indices traded in the green, with South Korea’s Kospi, Japan’s Nikkei 225, and Shanghai’s SSE Composite all registering gains. However, Hong Kong’s Hang Seng Index remained slightly lower.
Wall Street also closed mostly higher on Wednesday. The US futures pointed towards a firm opening later in the day, adding to the positive sentiment.
Sensex, Nifty Rise And Decline in Crude Oil Prices
Lower crude oil prices provided another boost to the Indian stock markets particularly to Nifty and Sensex. Brent crude fell 0.77 percent to USD 68.58 per barrel on July 3.
(Disclaimer: This article is for informational purposes only and should not be construed as an investment advice. Prior to making an investment, conduct thorough research and consult with your financial advisor.)
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