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Indian equity markets bounced back sharply from early losses on Thursday, lifted by cooling crude oil prices, firm global cues
Sensex Today (Source: Freepik)
Indian Benchmark indices ended Thursday’s volatile session in the red following US President Donald Trump’s announcement of a 25 per cent tariff on Indian exports.
The Sensex shed 296.28 points or 0.36 per cent to settle at 81,185.58. The index traded in the range of 81,803.27 to 80,695.15 on Thursday. The NSE Nifty50 also settled lower at 24,768.35, down 86.70 points or 0.35 per cent, after swinging between 24,635 and 24,956.50.
Tata Steel, Sun Pharma, NTPC, Adani Ports, and Reliance Industries were the top laggards among Sensex constituent stocks, ending the range of 2.70-1.34 per cent. Hindustan Unilever, Eternal, ITC, Kotak Mahindra Bank, and Power Grid were among the top gainers who ended higher by up to 3.61 per cent.
Key Reasons Why Markets Recovered From The Day’s Low
1. Trade Negotiation Optimism
Investor sentiment improved after US President Donald Trump, while proposing a 25% tariff on Indian goods, affirmed that talks with India would continue. Market analysts view the move as a strategic negotiation tactic, with the actual tariffs likely to be lower. Cautious optimism prevails ahead of the next round of trade talks scheduled for mid-August.
2. Crude Oil Eases
Brent crude slipped 0.19% to USD 73.10 per barrel, offering relief to Indian markets. As a major oil importer, India benefits from lower crude prices, which help rein in inflation and ease pressure on the current account.
3. Strong Global Sentiment
Asian markets traded mostly higher, with Japan’s Nikkei 225 gaining nearly 1.5%. Meanwhile, US equity futures were in the green during Indian market hours, suggesting a firm start on Wall Street later in the day.
4. Rupee Recovery
The Indian rupee recovered 14 paise from its all-time low to trade at 87.66 against the US dollar, following suspected RBI intervention. This rebound came after a steep 89-paise fall the previous day—its sharpest one-day drop in over three years—amid concerns over US sanctions linked to Russian oil and defence imports.
5. Rate Cut Hopes in the US
The US Federal Reserve kept interest rates unchanged in its latest meeting. However, internal dissent—most notably from Vice Chair for Supervision Michelle Bowman and Governor Christopher Waller—signalled rising support for a rate cut. Although Fed Chair Jerome Powell avoided giving a timeline, market participants interpreted the tone as leaving room for a potential rate cut in September.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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