Sensex and Nifty indices were trading higher in early trade on Wednesday, continuing the previous day’s sharp rise, due to fresh inflow of foreign funds and positive market sentiment following the India-US trade agreement. However, a sharp fall in IT stocks limited the gains in the markets.
In early trade, the 30-share BSE Sensex rose 68.49 points to 83,816.96. At the same time, NSE Nifty of 50 shares rose by 51.90 points to reach 25,779.45. The rupee also declined by 22 paise against the US dollar.
Condition of Sensex companies
Among the companies in the Sensex list, Mahindra & Mahindra, Power Grid, Reliance Industries, NTPC, ICICI Bank and ITC were among the biggest gainers. Infosys, Tata Consultancy Services, HCL Tech and Tech Mahindra were the biggest laggards, falling up to 5 percent. The BSE IT index fell 4.95 percent to 35,311.34 in early trade.
India-America trade deal
India and the US have agreed to the framework of a trade deal under which Washington will reduce tariffs on Indian goods to 18 per cent from the current 50 per cent. This announcement is significant as the US has imposed heavy tariffs on Indian goods entering the US markets from August 27, 2025.
VK Vijayakumar, chief investment strategist at Geojit Investments Ltd, said it will face hurdles in sustaining the momentum induced by the US-India trade deal. The Indian IT index will also be affected by the selling of IT stocks in the US tomorrow, which will limit the upside in the Indian market.
Mixed situation in Asian markets
In Asian markets, South Korea’s Kospi index was higher, while Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index were trading down. US markets closed with a decline on Tuesday.
The price of Brent crude increased to US $ 67.77 per barrel.
Global oil benchmark Brent crude rose 0.68 percent to US$67.77 per barrel. Foreign institutional investors bought Rs 5,236.28 crore in the stock market on Tuesday. According to exchange data, domestic institutional investors (DIIs) bought shares worth Rs 1,014.24 crore. On Tuesday, the Sensex closed 2,072.67 points or 2.54 per cent higher at 83,739.13. Nifty settled at 25,727.55, up 639.15 points or 2.55 per cent.
