Benchmark indices concluded Thursday with marginal gains following a swift reversal from earlier highs, as apprehensions regarding U.S. sanctions on Russian oil companies dampened optimism over a potential India-U.S. trade agreement. The BSE Sensex rose by 130.06 points, or 0.15%, to close at 84,556.40 after reaching an intraday high of 85,290.06. Meanwhile, the Nifty 50 increased by 22.80 points, or 0.09%, finishing at 25,891.40, retreating from an intraday peak of 26,104.
The trading session began on a strong note, with the Sensex moving from a previous close of 84,426.34 to 85,154.15, and the Nifty climbing from 25,868.60 to 26,057.20. This surge was fueled by reports suggesting that India and the U.S. were on the verge of finalizing a bilateral trade agreement that could significantly reduce tariffs on Indian exports from around 50% to approximately 15-16%.
However, this initial rally was short-lived as Reliance Industries faced a sharp decline after announcing a recalibration of its Russian oil imports in response to U.S. sanctions imposed on major oil firms Rosneft PJSC and Lukoil PJSC. These sanctions heightened concerns regarding India’s reliance on discounted Russian crude.
“The market rose sharply in the first half on optimism over a potential India-U.S. trade deal but surrendered most of its gains toward the close due to a significant drop in Reliance Industries,” noted Ponmudi R, CEO of Enrich Money. He further explained that the U.S. sanctions raised worries that India may need to decrease its purchases of discounted Russian crude and shift to pricier alternatives, which could impact the import bill and inflation rates.
In a contrasting trend, IT stocks emerged as strong performers, with Infosys leading the pack with a 3.57% gain, closing at ₹1,525.00. HCL Technologies and TCS followed suit, gaining 2.62% to ₹1,524.90 and 2.11% to ₹3,070.00, respectively. The momentum in IT stocks was attributed to strong confidence in Infosys’s long-term growth, as its promoters opted out of an ₹18,000-crore share buyback.
“IT stocks advanced as sentiment improved following Trump’s softer stance on H1B visas,” stated Vinod Nair, Head of Research at Geojit Investments Limited. The Nifty IT index saw a notable increase of 2.21%, outperforming other sector indices.
On the downside, Eternal led the decliners, falling 2.99% to ₹328.00, while IndiGo dropped by 2.09% to ₹5,789.50. Other notable declines included UltraTech Cement, which dipped 1.86% to ₹12,112.00, Eicher Motors slipping 1.77% to ₹6,894.00, and Bharti Airtel falling 1.64% to ₹2,009.90.
The market breadth reflected weakness, with 2,464 stocks declining versus 1,809 advancing on the BSE. While 221 stocks reached 52-week highs, 60 hit 52-week lows. Broader indices lagged as the Nifty Midcap 100 declined by 0.06% to 59,371.25, and the Nifty Next 50 edged down 0.12% to 69,434.35. The Nifty Bank sector managed a 0.12% gain, closing at 58,078.05, having reached an all-time high of 58,577 during the session.
“The Nifty erased its morning gains during the day; however, the short-term trend remains strong,” observed Rupak De, Senior Technical Analyst at LKP Securities. He added, “The trend appears to still have the potential to approach higher levels around 26,200 in the next 10–15 days.”
In currency markets, the Indian rupee appreciated by 0.19 paise, settling at 87.82 against the U.S. dollar, up 0.22%. This gain was attributed to positive sentiment surrounding a potential U.S. tariff deal. “The mood improved on hopes of reduced trade tensions, which has helped stabilize the rupee in the short term,” commented Jateen Trivedi, VP Research Analyst at LKP Securities. He indicated that the rupee currently has strong support at 87.65 and resistance near 88.10.
Gold prices on the MCX recovered ₹1,800, closing at ₹1,23,680 per 10 grams after a notable 5% correction on October 22 due to profit booking and renewed optimism surrounding U.S. trade talks. Trivedi noted, “Gold is facing solid resistance at ₹1,25,000-₹1,25,500, with support set between ₹1,20,000-₹1,21,000.”
“Foreign institutional investors (FIIs) are gradually returning to Indian markets, buoyed by expectations of an earnings rebound in H2FY26, driven by festive demand, tax advantages, and GST reductions,” stated Nair. FIIs have been net buyers over the last five trading sessions, contributing a total of ₹2,262 crore to Indian equities.
Looking ahead, market participants are focusing on key macroeconomic releases scheduled for Friday, including U.S. CPI data for September and Manufacturing and Services PMI figures for both India and the U.S. “As long as the Nifty maintains levels above 25,800 and Bank Nifty sustains over 58,000, the broader market bias remains positive,” remarked Ponmudi, further adding that some short-term consolidation or sideways trading may occur as traders await clarity from global data.
