Indian Stock Markets Surge to Record Highs on US Trade Deal Hopes and Strong Q2 Earnings

Strategic Insights -

The Indian stock market started the week on a high note, with both the Sensex and Nifty indices reaching record highs. The Sensex jumped 727.81 points (0.86 percent) to reach 85,154.15, while the Nifty 50 climbed 188.60 points (0.73 percent) to cross the 26,000 mark. The buying was broad-based, driven by hopes of an India-US trade deal, strong second-quarter earnings, Foreign Institutional Investors (FIIs) buying, and short-covering activity.

Key Takeaways:

  • The Sensex and Nifty indices reached record highs, with the Sensex gaining 727.81 points (0.86 percent) to 85,154.15 and the Nifty 50 climbing 188.60 points (0.73 percent) to 26,000.
  • Reports of a possible India-US trade deal lifted investor confidence, with the deal expected to reduce US tariffs on Indian exports from nearly 50 percent to 15-16 percent.
  • Strong second-quarter earnings from companies like Reliance Industries and top banks added to the market's strength, with analysts foreseeing corporate earnings recovery in the second half of FY26.
  • Heavyweight stocks such as Infosys, HCL Technologies, Tata Steel, Axis Bank, TCS, Tech Mahindra, and Hindustan Unilever all gained over 1 percent, pushing benchmarks higher.
  • FIIs purchased shares worth Rs 96.72 crore in the fifth straight session, while Domestic Institutional Investors (DIIs) sold equities worth Rs 607.01 crore.
  • Short-covering activity helped push large-cap stocks higher, with analysts noting that strong momentum indicators are keeping Nifty near its upper Bollinger band, signaling continued strength in the short term.

Statistics:

  • The Sensex increased by 727.81 points (0.86 percent) to 85,154.15.
  • The Nifty 50 climbed 188.60 points (0.73 percent) to 26,000.
  • FIIs purchased shares worth Rs 96.72 crore in the fifth straight session.
  • DIIs sold equities worth Rs 607.01 crore.
  • Heavyweight stocks such as Infosys, HCL Technologies, Tata Steel, and Hindustan Unilever gained over 1 percent.

Sources:

  • [Indian National Press (Bombay) Pvt. Ltd., distributed by Contify.com, 2025]