Sentiment was buoyed after an exchange of messages between US President Donald Trump and Indian Prime Minister Narendra Modi. Trump on Wednesday signalled a potential thaw in the relationship with India, stating that negotiations to address trade barriers were ongoing and expressing his intention to speak with Prime Minister Narendra Modi in the coming weeks. The comments marked a shift in tone after weeks of heightened discord between the two nations.
“Renewed optimism around ongoing trade negotiations between India and the US lifted market sentiment. Anticipation of stronger H2FY26 earnings, driven by GST rationalisation and the benefits of monetary easing, is providing resilience to valuations. The IT index extended its outperformance on hopes of a potential Fed rate cut next week and a revival in technology spending. Investors remain focused on the progress of India–US trade talks for signals of a constructive resolution to tariff-related issues,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
Information technology shares led the rally, tracking upbeat guidance from Oracle Corp. Oracle Financial Services Software Ltd surged 10%, while mid-cap IT stocks climbed 4-5%.
Public-sector lenders advanced on reports of government plans for further consolidation in the sector, with Bank of India and Union Bank of India rising nearly 4% each.Insurance stocks gained on expectations of a relaxation in goods and services tax (GST) rules, with HDFC Life Insurance Co. emerging as the top gainer.
Defence stocks also saw renewed buying, with Bharat Electronics Ltd and Bharat Dynamics Ltd among the top gainers.
Meanwhile, auto shares were the top drag on the Nifty 50 after a recent rally driven by GST rate cuts. Mahindra & Mahindra, Maruti Suzuki, Bajaj Auto, Hero MotoCorp, and Eicher Motors were among the biggest losers.
Among midcaps, BSE Ltd was the top loser, dropping nearly 4% on heavy volumes. Muthoot Finance Ltd also slipped as investors booked profits amid improving equity market sentiment.
First Published: Sept 10, 2025 3:40 PM IS
