CHENNAI: Indian stock markets continued their upward trend in midmorning trade on Wednesday, supported by optimism over progress in US-India trade discussions and expectations of a US interest rate cut. The Nifty 50 index rose by 0.49 percent to 24,991.25, while the BSE Sensex gained 0.5 percent or 386 points to reach 81,506.04 in the midmorning trade. This marks the fifth consecutive day of gains for the indices, though they remain about 5.4 percent below their all-time highs recorded last year.
Among sectors, IT stocks led the rally, gaining around 2 percent as investors reacted positively to the prospects of strong demand for Indian technology services and a likely easing of global monetary policy. Mid-cap and small-cap indices also rose by 0.5 percent, indicating broad-based strength across the market.
Export-oriented sectors such as textiles and seafood saw notable gains. Stocks like Apex Frozen and Avanti Feed rose after the European Union cleared additional Indian fishery export facilities, boosting market confidence.
Market sentiment remained positive due to ongoing US-India trade negotiations and domestic policy support. However, geopolitical tensions continue, with the US President calling for the EU to impose 100% tariffs on China and India, while signaling the possibility of a more favorable trade relationship with India.
In the currency market, the Indian Rupee traded at 88.1520 against the US Dollar, down by 0.11 percent from the previous session. Over the past month, the Rupee has depreciated by about 0.55 percent, and compared to the same period last year, it has weakened by approximately 5 percent.
Key factors influencing the currency include global crude oil price movements, foreign capital flows, and expectations of changes in U.S. Federal Reserve policies. An anticipated U.S. interest rate cut is currently boosting investor sentiment but also keeping a watchful eye on currency volatility.
Looking ahead, Indian markets are expected to remain supported by positive domestic and international developments. Still, investors should monitor geopolitical developments and global economic indicators that may impact market dynamics in the near term.