Sensex, Nifty Rally Ahead of Diwali as Trade Deal Hopes Lift Market Sentiment; Rupee Hits One-Month High

Indian stock markets continued their upward trajectory on Thursday, with both the Sensex and Nifty extending gains ahead of Diwali. Investor sentiment brightened on renewed optimism over a potential trade agreement between India and the United States.

By 2:33 pm, the S&P BSE Sensex had surged 885.28 points to 83,490.71, while the NSE Nifty50 advanced 265.25 points to 25,588.80 — a rise of more than 1%.

The Indian rupee also strengthened, reaching a one-month high amid positive cues from the trade discussions. The currency touched 87.70 in early trade before closing at 87.87, up 0.2% for the day.

Market participants noted that the Reserve Bank of India (RBI) intervened actively to support the rupee, reportedly selling between $3 billion and $5 billion in the spot and forward markets on Wednesday — one of its largest interventions in recent months. The move aimed to curb speculation and deter short positions on the currency.

Sentiment further improved after US President Donald Trump stated that Indian Prime Minister Narendra Modi had agreed to halt oil imports from Russia, a sign that trade tensions might ease. Trump had previously imposed a 25% tariff on Indian goods under the “reciprocal tariffs” policy and criticized India’s Russian oil purchases.

The Indian government later confirmed that discussions were underway with the US to enhance energy cooperation, which bolstered investor confidence and supported the rupee’s gains.