Markets Open Higher on U.S.-China Trade Optimism; IT Stocks Lead Gains
Despite this, all 13 sectoral indices opened in the green, with the IT sector leading the way. The Nifty IT index rose by 2.24 per cent.
Market Update at 10:20 AM: India's benchmark indices opened higher on Wednesday, supported by optimism around easing U.S.-China trade tensions. This came after U.S. President Donald Trump indicated that tariffs on Chinese goods could be reduced significantly once a deal is finalised, though they would not be completely eliminated.
At 9:15 a.m. IST, the Nifty 50 was trading 0.79 per cent higher at 24,357.6, while the BSE Sensex was up 0.69 per cent, reaching 80,142.09.
Meanwhile, Trump also appeared to soften his stance on U.S. Federal Reserve Chair Jerome Powell, which helped the U.S. dollar recover from recent multi-year lows.
Investor concerns continue over the broader impact of the U.S.-China trade dispute on global growth and inflation. Despite this, all 13 sectoral indices opened in the green, with the IT sector leading the way. The Nifty IT index rose by 2.24 per cent.
Among individual stocks, HCL Technologies stood out, rising 5.1 per cent to become the top performer on the Nifty 50. Although the company reported slightly weaker-than-expected revenue for the fourth quarter, its FY26 growth forecast of 2 to 5 per cent exceeded market expectations relative to its industry peers.
Pre-Market Update at 8:15 AM: The Sensex and Nifty 50 are expected to open higher on Wednesday, driven by a positive global market rally. Asian markets experienced gains, and US stocks surged overnight, fueled by President Donald Trump’s comments about Federal Reserve Chair Jerome Powell and optimism surrounding the de-escalation of the US-China trade conflict.
Gift Nifty was trading at approximately 24,371, showing a premium of around 202 points, signaling a strong start for Indian indices.
Global markets provided a boost, with Asian indices showing strong performances. Japan’s Nikkei 225 rose by 1.85 per cent, while the South Korean Kospi climbed 1.02 per cent. Futures for Hong Kong’s Hang Seng index indicated a positive opening.
On Wall Street, the US stock market saw significant gains, with the Dow Jones surging 1,016.57 points (2.66 per cent) to 39,186.98. The S&P 500 climbed 129.56 points (2.51 per cent) to 5,287.76, and the Nasdaq Composite increased by 429.52 points (2.71 per cent) to 16,300.42. Key stocks like Tesla, Nvidia, Amazon, and Apple saw notable gains, although 3M Co. and Northrop Grumman faced declines.
US Treasury Secretary Scott Bessent suggested that the US-China tariff standoff is unsustainable and expects de-escalation, although negotiations are yet to start. Trump also backed off his threats to remove Fed Chair Jerome Powell, signaling a more stable outlook for US monetary policy.
The IMF revised its global growth forecasts downward, citing the ongoing US tariffs and rising trade tensions, with India’s growth projections for FY26 and FY27 also being slightly reduced.
On Tuesday, the Indian stock market extended its rally for the sixth consecutive session, with the Nifty 50 closing above the 24,100 level. The Sensex rose by 187.09 points (0.24 per cent) to end at 79,595.59, while the Nifty 50 gained 41.70 points (0.17 per cent) to settle at 24,167.25.
Meanwhile, India’s economy appears resilient to global challenges, according to the RBI’s April bulletin, with strong domestic growth and favorable monsoon forecasts supporting growth prospects.
In corporate news, HCL Technologies reported a fall in its Q4 net profit by 6.18 per cent QoQ, while its revenue grew 1.19 per cent QoQ. The company declared an interim dividend of ₹18 per share
The US dollar strengthened against major currencies following Trump’s comments on Powell. Gold prices dropped due to optimism regarding easing trade tensions and Trump’s stance on the Federal Reserve. Meanwhile, crude oil prices rose as investors weighed the impact of fresh sanctions on Iran and a drop in US crude inventories.
On the institutional front, FIIs were net buyers, purchasing Rs 1,290.43 crore worth of shares. In the last five trading sessions, FIIs have been on a buying spree, while DIIs sold Rs 885.63 crore.
Stocks banned for trading in the F&O segment on April 23 include Manappuram Finance and RBL Bank..
Disclaimer: The article is for informational purposes only and not investment advice.