Indian Stocks Surge on US Federal Reserve Rate Cut Hopes and Potential US-India Trade Deal

Indian benchmark indices, the Sensex and Nifty, staged a robust recovery, rising by 0.44% and 0.45% respectively. The Sensex closed at 84,997.13, while the Nifty crossed the 26,000 mark, reaching 26,053.90. The market sentiment was buoyed by the anticipation of a potential interest rate cut by the US Federal Reserve, with its meeting concluding soon. Adding to the positive mood, US President Donald Trump expressed his intention to pursue a trade deal with India during his address at the Asia Pacific Economic Cooperation (APEC) meet in South Korea.

Leading the rally were stocks like NTPC, which jumped nearly 3%, followed by Adani Ports and Oil and Natural Gas Corporation (ONGC), both gaining over 2.5%. Conversely, Dr. Reddy's Laboratories, Coal India, and Bharat Electronics saw declines of about 1.5%.

Sectorally, Nifty Oil & Gas, Metal, and Media indices performed well, rising between 1-2%. Notably, the Nifty Metal index hit a record high, partly influenced by improved US-China relations as President Trump was set to meet Chinese President Xi Jinping. Steel Authority of India Limited (SAIL) surged 6.15% to a new 52-week high, with Hindustan Zinc and NMDC also rising nearly 3% each.

The broader market also participated in the uptrend, with the Nifty Midcap index up 0.64% and the Smallcap index up 0.43%, indicating sustained buying interest. Specific sectors like textiles and shrimp companies saw rebounds of up to 5% following President Trump's trade deal comments. Apex Frozen Foods shares rose over 4%, Coastal Corporation and Avanti Feeds gained more than 2%, while Gokaldas Exports and Pearl Global Industries shares jumped 4% each, and Raymond Lifestyle shares increased by over 2%.

Analysts noted broad-based buying across key sectors, driven by positive global cues and trade talk hopes. However, all eyes remain on the upcoming FOMC Fed Meeting decision.

Impact This news has a positive impact on the Indian stock market, driving significant gains across indices and sectors. Rating: 8/10.

Difficult Terms: * **Benchmark Indices**: The main stock market indexes that represent the overall performance of the market, like the Sensex and Nifty. * **Bourses**: A term used to refer to stock exchanges or the stock market in general. * **APEC**: Asia Pacific Economic Cooperation, a regional economic forum aimed at promoting free trade throughout the Asia-Pacific region. * **FOMC Fed Meeting**: Federal Open Market Committee Meeting. This is the primary monetary policymaking body of the United States Federal Reserve, which decides on interest rates and other monetary policy tools. * **Profit Booking**: The act of selling a security or asset after its price has risen in order to realize the profit. This can sometimes lead to a temporary decline in the asset's price.