Indian stock markets rebounded on Thursday, ending a three-day decline, driven by positive global signals and reduced geopolitical tensions. Market sentiment improved following US President Donald Trump’s announcement that he would not levy tariffs on European Union nations from February 1. Trump also mentioned progress in negotiations with NATO regarding Greenland, and his positive comments on a potential trade deal between the US and India further boosted investor confidence.
The Sensex surged by 397.74 points, or 0.49%, to settle at 42,307.37 by the end of trading. Similarly, the Nifty recorded a gain of 132.4 points, or 0.53%, closing at 25,289.9. Market experts suggest that as long as the Nifty holds above 25,120, the overall setup remains stable, with a potential gradual rise towards 25,400–25,500.
Analysts emphasize the need for a decisive close above 25,600 to confirm a bullish breakout and shift momentum in favor of the bulls. Failure to defend the 25,120 level could lead to renewed downward pressure towards 25,100, according to market observers. Notable buying interest was observed in key stocks like Adani Ports, BEL, SBI, and Tata Steel, while others such as Eternal, Titan, Maruti Suzuki, and ICICI Bank closed the session in the negative territory.
Sector-wise, the markets displayed broad-based strength, with most sectoral indices ending higher except for Nifty Realty and Consumer Durables. Nifty PSU Bank and Nifty Media emerged as top performers, each rising over 2%. The broader markets also reflected positive momentum, with the Nifty MidCap 100 index climbing 1.34% and the Nifty SmallCap index closing 0.76% higher.
Market experts suggest a cautiously positive outlook for Nifty, favoring a buy-on-dips strategy near supports and selling near resistance levels until a clear directional breakout occurs.
