Mumbai’s stock market roared back to life on Thursday, snapping a three-day losing streak with a spectacular opening. The BSE Sensex catapulted over 500 points higher, opening at 82,459.66 against the previous close of 81,909.63. The Nifty 50 followed suit, starting the day at 25,344.15, up from 25,157.50.
By 9:18 AM, the Sensex was trading at 82,432.69, a gain of 523.06 points or 0.64%. The Nifty climbed to 25,310.05, up 152.55 points or 0.61%. Every Nifty sectoral index flashed green, signaling broad-based optimism.
The rally intensified shortly after, with the Sensex surging more than 700 points at one stage. Broader markets shone brightly too: Nifty Midcap 100 rose 1.4%, while Nifty Smallcap 100 advanced 1%.
Sector-wise, PSU Banks led with a 2% jump, followed by Auto and Bank indices at 1% each. IT and Metal sectors gained 0.9% and 0.8%, respectively. Standouts in the Sensex pack included Tata Steel, Adani Ports, Asian Paints, BEL, SBI, Kotak Bank, Sun Pharma, Trent, M&M, Bajaj Finserv, Indigo, and ITC, all posting gains exceeding 1%.
Out of 30 Sensex stocks, 29 ended in positive territory, with only ICICI Bank bucking the trend.
The trigger? Easing concerns over a potential trade war linked to Greenland tensions. Experts point to former President Trump’s familiar backpedal—dubbed ‘TACO’ (Trump Again Chickens Out)—as he retreated from threats of forceful acquisition, opting instead for a future framework agreement. More crucially, signals of no immediate tariffs on Europe have lifted the shadow of a US-Europe trade conflict.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted this has sparked a relief rally. With around 200,000 short contracts in play, conditions favor short-covering, potentially fueling further upside. While Q3 earnings face hits from new labor code provisions, markets view these as one-off expenses and are likely to shrug them off.
This buoyant start underscores investor confidence in global de-escalation, setting the stage for sustained momentum if positivity holds.