Domestic stock markets opened sharply higher after US President Donald Trump announced approval of a trade deal with India. Despite mixed signals from international markets, Indian indices showed strong momentum, pushing toward record levels. The BSE Sensex rose 2,395 points to trade at 84,062, while the NSE Nifty gained 770 points to 25,852.
The trade deal between the United States and India acted as a major boost for investors. Tariffs on Indian products were reduced from 25 per cent to 18 per cent, lower than those on China and Pakistan. Analysts said the announcement significantly improved market sentiment and strengthened investor confidence.
Meanwhile, attention is now on the Reserve Bank of India (RBI), which will hold its Monetary Policy Committee meeting tomorrow. Experts expect the RBI may reduce the repo rate by 0.25 per cent to keep inflation in check and accelerate economic growth. Lower interest rates could benefit sectors such as banking, real estate, and automobiles, further supporting stock market gains.
Overall, Indian markets have recovered sharply after a period of pre-budget caution. Investors are optimistic as record highs in key indices indicate renewed confidence in both domestic economic policies and international trade relations.
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