In a welcome relief for Dalal Street, the BSE Sensex roared back with a 301-point rally on Thursday, closing at an elevated level following upbeat comments from the United States ambassador. The Nifty 50 mirrored the gains, ending the session on a firm note.
The diplomat’s statement emphasizing deeper economic partnerships between Washington and New Delhi acted as a catalyst. Spoken during a high-profile event, the remarks addressed concerns over trade barriers and signaled robust support for Indian growth story.
Bulls wasted no time, piling into blue-chip names. Key indices benefited from outperformance in private banks, technology majors, and energy plays. Market breadth was positive, with more stocks advancing than declining.
‘FIIs turned net buyers today, absorbing the dip,’ observed a veteran trader. The shift came after days of outflows, partly reversing the recent selling pressure amid geopolitical tensions.
Broader markets outperformed benchmarks, underscoring retail investor enthusiasm. Pharma and FMCG sectors provided defensive support, while cyclical stocks like cement and infrastructure gained traction on expectations of capex revival.
Technically, the Sensex has broken out of a consolidation pattern, with momentum indicators flashing bullish signals. Support now rests at the 20-day moving average, while upside targets point towards all-time highs.
As markets digest the envoy’s words, focus shifts to macroeconomic data releases and corporate results. The rally underscores India’s resilience, but experts warn against complacency amid elevated valuations and external risks.
