The Indian stock market snapped three day losing streak to rise over 1% on Thursday, buoyed by positive global cues and surge in PSU bank and metal stocks.
The Nifty 50 surged 1.11% to hit 25,435.75, while the Sensex climbed over 800 points to 82,783.18. This comes after the Asian market mirrored the gains in the Wall Street.
Volatility index VIX had fallen over 3% at 10:00 a.m.
Here are five reasons for the rise in market:
Trump's Comment On India-US Trade Deal
US President Donald Trump on the siedelines on theWorld Economic Forum (WEF) being held at Davos in Switzerlan told Money Control that America would have a ‘great' trade deal with India. He also praised Prime Minister Modi and called him a great friend.
Trump To Refrain From Imposing Tariffs On Europe
Trump during the even also added that he would refrain from imposing tariffs on Europe, citing a “framework” deal over Greenland. This according to investors are signs of easing geopolitical and trade tensions.
“The framework of the Greenland deal takes down the temperature a lot, given the happenings over the weekend,” Joe Gilbert, portfolio manager at Integrity Asset Management told Bloomberg. “Less tariffs are unequivocally a positive for markets.”
Global Cues
Asian equities rose early Thursday, following Wall Street after comments from Trump helped drive markets. Japan Index rose 1.95% while Australia and South Korea Index are trading over 1% higher. The benchmark gauge in South Korea — a bellwether for technology stocks — climbed to a new record.
The US stocks surges after Trump's comments on Wednesday. The S&P 500 added 1.2% in its biggest advance since November. While Dow Jones Industrial Average rose 1.2%, tech heavy Nasdaq was up 1.4%.
Banks And Defense Led Rally
The NSE Nifty Bank index rose over 1% and was among the leading gainers. Nifty PSU Bank led sectoral gains on Thursday.
State Bank of India Ltd. and HDFC Bank Ltd were top contributor to the Nifty index on Thursday morning.
The NSE Nifty PSU Bank index rose nearly 3% on Monday. With Bank of India, Bank of Baroda and Canara Bank among the top gainers in the index.
Nifty India Defense was the second sectoral leader for the day. The index was up 2% during the early hours of trading.
Rupee Recovery
Rupee rebounded from its all-time low levels and gained 15 paise to trade at 91.50 against the US dollar in early deals on Thursday, on improved risk appetite after Donald Trump said that he had no intention of applying tariffs on Europe for Greenland acquisition.
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