Markets Rally as Trump Signals Breakthrough in India-US Trade Talks
Investor confidence surges with easing tensions and renewed negotiations, as IT stocks lead the charge and global markets respond positively.
10 September 2025
Indian equity benchmarks Sensex and Nifty surged in early trading on Wednesday, buoyed by renewed optimism over India-US trade relations and a rally in IT stocks.
The 30-share BSE Sensex opened at 81,543.91, up 442.59 points, while the 50-share NSE Nifty rose to 24,992.80, gaining 124.2 points.
As of 11:40 AM IST, the Sensex stood at 81,543.91, up 442.59 points, while the Nifty was at 24,992.80, gaining 124.2 points.
The rally was led by major IT stocks, with HCL Technologies, Tata Consultancy Services (TCS), Tech Mahindra, Larsen & Toubro, Infosys, and Kotak Mahindra Bank among the top gainers.
Conversely, Mahindra & Mahindra, Maruti Suzuki, Tata Motors, and Sun Pharma were among the laggards.
The market’s positive momentum was fueled by U.S. President Donald Trump’s announcement that he is “certain” there will be “no difficulty” in reaching a “successful conclusion” to ongoing trade talks with India.
In a post on Truth Social, Trump expressed confidence in resolving trade barriers between the two nations and looked forward to speaking with Prime Minister Narendra Modi in the coming weeks.
Prime Minister Modi responded positively, describing the U.S. and India as “close friends” and expressing confidence that the negotiations will unlock the “limitless potential” of the partnership.
The announcement marks a significant shift in bilateral relations, which had been strained following the U.S. imposition of a 50% tariff on Indian goods earlier this year.
The tariffs, which included a 25% penalty on purchases of Russian oil, had led to heightened tensions between the two countries.
In response to the positive developments, Foreign Institutional Investors (FIIs) turned net buyers on Tuesday, purchasing stocks worth ₹2,050.46 crore, according to exchange data.
Asian markets also traded in positive territory, with South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite Index, and Hong Kong’s Hang Seng all showing gains.
Global oil benchmark Brent crude climbed 0.87% to $66.95 a barrel, further supporting investor sentiment.
The positive momentum is expected to continue, driven by improved investor confidence and renewed optimism in India-US trade relations.