After three consecutive sessions of declines, the Indian stock market staged a confident comeback on Thursday, buoyed by supportive global signals and renewed optimism around India–US trade relations. Despite sharp intraday swings, benchmark indices ended firmly in positive territory, restoring some investor confidence.
In a volatile monthly expiry session, the BSE Sensex climbed 397.74 points to close at 82,307.37, while the NSE Nifty 50 gained 132.40 points to settle above the key 25,250 mark at 25,289.90. Notably, both indices opened with strong momentum before surrendering part of their gains mid-session, only to recover by the close.
Sensex and Nifty Today: Volatility Defines the Trading Session
Early trade saw the Sensex surge nearly 813 points to 82,722.49, while the Nifty briefly crossed 25,400, reflecting strong overnight cues from global equity markets. Meanwhile, profit-taking at higher levels and persistent foreign investor selling triggered a sharp pullback in afternoon trade, dragging the Sensex close to 82,000.
That said, broader market sentiment remained constructive. Mid-cap and small-cap stocks advanced around 1 percent each, signaling healthy risk appetite beyond frontline indices. Sectorally, most indices closed higher, with real estate and consumer durables being the notable laggards.
Adding to the positive undertone, the India VIX, often referred to as the market’s fear gauge, slipped over 4 percent to 13.22, suggesting easing volatility expectations in the near term.
Why the Indian Stock Market Rose Today
The morning rally was largely driven by a rebound in global equities after US President Donald Trump signaled a softer stance on geopolitical and trade issues. In comments reported by international media, Trump ruled out aggressive action regarding Greenland and indicated restraint on additional tariffs targeting European partners.
Responding to a query from Moneycontrol, Trump also expressed confidence that the US is “going to have a good deal with India,” reigniting hopes around progress on a bilateral trade agreement. For markets already under pressure from recent foreign outflows and muted earnings, this reassurance proved timely.
According to V K Vijayakumar, Chief Investment Strategist at Geojit Investments, the relief rally was amplified by short-covering, with nearly two lakh short contracts outstanding. He noted that fears of a broader transatlantic trade standoff had weighed heavily on equities in recent sessions, and Thursday’s shift in tone helped reverse that trend.
Looking ahead, concerns around third-quarter earnings—particularly higher provisions linked to new labor code commitments—are expected to be treated as one-off adjustments. Meanwhile, better-than-expected performance from select companies in the quick commerce space has offered pockets of optimism.
Overall, Thursday’s rebound underscores how sensitive Indian equity markets remain to global developments, especially around trade policy. If external stability persists, investors may see further consolidation rather than sharp downside in the near term.
