Mumbai’s benchmark indices closed higher on Thursday, buoyed by positive remarks from the US ambassador that sparked optimism among investors. The Sensex surged 301 points to settle at a new high, while the Nifty also posted strong gains amid renewed buying interest.
The market rally gained momentum after the American envoy highlighted strengthening bilateral ties and potential trade opportunities between India and the US. Investors interpreted the comments as a green signal for economic collaboration, leading to a broad-based uptick across sectors.
Financial heavyweights led the charge, with banking and IT stocks posting sharp recoveries. HDFC Bank, Reliance Industries, and Infosys were among the top performers, collectively adding significant weight to the indices. The rally erased early session losses triggered by global uncertainties.
Market analysts attributed the bounce-back to the envoy’s reassurance on key issues like tariffs and investment flows. ‘This statement has injected fresh confidence,’ said a leading broker, noting increased foreign institutional investor (FII) participation.
Small and mid-cap stocks also joined the party, with the BSE Midcap index climbing over 1%. Sectors like auto, metals, and realty saw robust buying as risk appetite returned. However, volatility remained high, with the India VIX easing marginally.
Looking ahead, experts remain cautiously optimistic. With upcoming policy decisions from the Federal Reserve and domestic earnings season kicking off, the market could face more swings. Yet, the US envoy’s positive tone sets a constructive backdrop for sustained recovery.
The day’s close marks a psychological victory for bulls, who now eye the next resistance levels at historic peaks. Investors are keenly watching global cues, particularly from Wall Street, for further direction.