The Nifty 50 breached the 26,000 mark for the first time in over a year on Thursday, signalling renewed investor confidence amid a wave of positive developments on both domestic and global fronts.
The rally was fuelled by optimism over a potential India–US trade agreement, sustained foreign fund inflows, strong buying in information technology stocks, and a strengthening rupee.
As of 10:21 a.m. IST, the benchmark Sensex was up 786 points, or 0.93 percent, at 85,212, while the Nifty 50 advanced 218 points, or 0.85 percent, to 26,087.
The milestone marked a significant comeback for the broader market, which has been gaining steadily on the back of easing global uncertainty and improving macroeconomic indicators.
Market sentiment improved sharply after reports suggested that India and the US were narrowing differences over tariff terms, with discussions focusing on reducing duties on certain goods to about 15–16 percent.
The prospect of a deal that could expand trade volumes between the two economies has sparked optimism among investors, particularly in export-oriented sectors.
Analysts observed that such an agreement could significantly improve India’s trade balance and boost market confidence ahead of the festive season.
Foreign institutional investors continued their buying streak for the fifth straight session, purchasing shares worth nearly ₹100 crore during the special one-hour Diwali trading window earlier in the week.
The steady inflows are being seen as a vote of confidence in India’s economic outlook, underpinned by solid macroeconomic fundamentals and robust corporate earnings.
The technology sector led the gains, with the Nifty IT index rising over 2 percent.
Stocks such as Infosys, HCL Technologies, Tech Mahindra, and Tata Consultancy Services advanced strongly after the US administration clarified that existing H-1B visa holders and certain international graduates would be exempt from a new $100,000 visa fee.
The clarification eased concerns about higher operating costs for Indian IT firms with significant exposure to the US market.
The rupee also strengthened, appreciating by 13 paise to 87.80 against the US dollar in early trade. Analysts attributed the movement to upbeat domestic equity sentiment, foreign inflows, and expectations of progress in trade negotiations.
From a technical standpoint, market experts noted that the Nifty’s strong momentum has kept it close to its upper Bollinger band, indicating continued bullishness.
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