The BSE Sensex and NSE Nifty hit seven-month highs in the afternoon trading session on Thursday despite dipping in the morning, after US President Donald Trump said India was negotiating a zero-tariff trade deal with the United States. This came a day after India released better-than-expected retail inflation numbers.
Indian stock market indices shot up, with the Sensex closing 1.48 per cent higher at a seven-month high of 82,530.74 and the Nifty rising 1.6 per cent higher to hit 25,062.10 at closing bell.
The auto stocks outperformed, with Tata Motors climbing as high as 4.3 per cent. Metals, the financial sector, oil and gas, and IT stocks also rose.
On Wednesday, the Centre reported retail inflation numbers, with it easing to almost a six-year low of 3.16 per cent in April, as prices of vegetables, fruits, pulses, and other protein-rich items remain subdued. This might also urge the RBI to cut repo rates in June.
CPI-based inflation a month ago (March 2025) was 3.34 per cent and was 4.83 per cent a year ago (April 2024).
The rupee, however, tanked by 18 paise to close at a provisional 85.50 vs the dollar on Thursday, as importers and foreign fund outflows triggered a demand in the American currency.
Overall, it was a good trading day in India markets, with Sensex gaining more than 1,200 points and Nifty rising by over 395 points. This was the first time the Nifty closed above the 25,000-mark in 2025.
Except for IndusInd Bank, the rest of the Sensex stocks jumped, led by Tata Motors. Other major gainers were HCL Tech, Adani Ports, Eternal, Maruti, Reliance Industries, Asian Paints, HDFC Bank, ICICI Bank, Bharti Airtel, and Infosys.
Despite gains in India markets, rest of the Asian markets dipped. Major indices Kospi, Nikkei 225, SSE Composite, Hang Senge, all settled in the red.
