Markets surge on tech optimism and US-China trade talk hopes
Indian Markets Surge: Tech Rally and US-China Trade Talks Drive Sensex Above 81,000
Market Snapshot
Indian stock markets opened with robust gains on Friday, as the Sensex surged 827.97 points (1.03%) to 81,070.21 and Nifty climbed 225.70 points (0.93%) to 24,559.90. The rally was fueled by positive global cues, strong tech earnings, and improving US-China trade relations.
Key Market Drivers
The market’s strong performance was underpinned by multiple positive factors, including optimism surrounding potential US-China trade talks and impressive quarterly results from global tech giants Microsoft and Meta. Domestic factors such as record GST collections for April and lower crude oil prices further bolstered investor confidence.
Top Market Movers
| Top Gainers | Change (%) |
|---|---|
| Adani Ports | +4.49% |
| Hindalco | +3.89% |
| Maruti Suzuki | +3.29% |
| IndusInd Bank | +2.26% |
| Mahindra & Mahindra | +1.99% |
| Top Losers | Change (%) |
|---|---|
| Eicher Motors | -1.84% |
| Nestle India | -1.34% |
| Bajaj Finserv | -0.91% |
| Shriram Finance | -0.37% |
| Titan Company | -0.30% |
Global and Domestic Catalysts
The Trump administration’s potential announcement of trade agreements with major Asian economies, including India, South Korea, and Japan, has created positive sentiment in the market. Additionally, China’s openness to trade talks has further boosted investor confidence. On the domestic front, GST collections reached an all-time high of ₹2.37 lakh crore in April, showing robust economic activity.
Sector Performance
- Auto stocks rallied on strong April sales data from Maruti Suzuki and TVS Motor
- Defence stocks gained momentum due to strong government order book
- Infrastructure stocks rose following ₹28,800 crore highway project approvals
- Oil marketing companies benefited from lower Brent crude prices
Technical Analysis and Market Outlook
Key Technical Levels
The Nifty 50 is showing signs of potential bullish momentum, with a flag and pole pattern developing on the hourly chart. A sustained break above 24,400 could push the index towards 24,500 and 24,700 levels. However, the market faces resistance near the 24,450/80500 zone, with a double top pattern formation suggesting possible temporary weakness.
Market Performance Metrics
Key Statistics
- Nifty weekly gain: 1.25%
- April month gain: 12.50%
- Month-on-month rise: ~4%
- FII net buying in April: Over ₹2,600 crore
- Consecutive FII buying sessions: 11
Commodities and Global Markets
In the commodities market, gold prices remained elevated near $3,230 per ounce, while silver traded around $32 per troy ounce. Crude oil prices showed volatility, trading at $61 per barrel after touching three-week lows. The Bank of Japan’s decision to maintain its benchmark interest rate and the US GDP contraction of 0.3% in Q1 2025 also influenced market sentiment.
Expert Outlook
While the market shows strong momentum, analysts recommend a cautious approach with a focus on quality stocks. Investors should monitor global developments and technical breakout levels while maintaining a balanced portfolio strategy in the face of ongoing geopolitical tensions and economic uncertainties.
Published on May 2, 2025
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