Sensex Surges Over 450 Points from Day’s Low, Nifty Tops 25,200 on US-China Trade Optimism

Mumbai, June 11: Indian benchmark indices staged a strong rebound in intraday trade on Wednesday, buoyed by positive global cues and sustained foreign investor buying. The BSE Sensex climbed over 450 points from the day’s low, reaching a high of ₹82,710.41. However, at around 1:00 PM, it was trading slightly lower than its high at ₹82,721.91, up by 330.19 points or 0.40%.

Another key benchmark, Nifty, was also up by 112.75 points, or 0.45, at around the same time and was trading at ₹25,217.

What Is Driving The Market Rally?

The following factors are driving today’s market rally in both indices:

Key Stock Movements And Market Events

CreditAccess gained over 4% due to a $100 million foreign-currency loan. Oriental Carbon surged 9% after BofA acquired a stake, potentially benefiting from anti-dumping duties. Texmaco Rail rallied 5% on a ₹44 crore order win for railway infrastructure. Additionally, significant institutional activity was observed in AB Capital and Eternal through block deals, while Ganga Bath Fittings made a strong debut on the NSE SME platform with a 20% premium, reflecting a healthy appetite for new listings.

US-China Trade Discussions Reignite Sentiment

Investor sentiment received a significant boost as the United States and China agreed to restart trade negotiations and committed to lifting certain export restrictions, following constructive meetings in London. This development eased global trade tensions.

Continued Foreign Institutional Investment

Foreign portfolio investors continued their buying spree for the fifth consecutive session, injecting a substantial ₹2,301.87 crore into domestic equities on the previous trading day, indicating strong confidence in the Indian market.

Gains in Asian and US Markets

Gains in major Asian markets (including Japan’s Nikkei 225, China’s SSE Composite, South Korea’s Kospi, and Hong Kong’s Hang Seng) and overnight advances in US equity markets contributed to a broadly positive global environment.

Strengthening Rupee And Falling Crude Oil Prices

The Indian rupee appreciated by 6 paise to 85.51 against the US dollar, mainly due to capital inflows. Simultaneously, a 0.16% drop in Brent crude prices to USD 66.76 per barrel offered crucial relief for India, a major oil importer.

Index Heavyweights Lead the Charge

Major contributors to the rally included prominent stocks like Reliance Industries (which rose nearly 2% to become a top Nifty50 performer), Mahindra & Mahindra, Tata Motors, NTPC, and Tata Steel, underscoring broad-based participation among large-cap companies.

What’s Ahead For Sensex And Nifty? 

Sensex and Nifty look set to stay strong if global trade talks and foreign investor buying continue to support the market. Nifty may hold above 25,200, and Sensex could move toward new highs. Still, traders and investors will be keeping a close eye on upcoming U.S. inflation data and the Fed’s comments, as they could bring some short-term fluctuations.

The session reflected strong recovery momentum in Indian equities, supported by a confluence of domestic and international factors.

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