Indian stock markets edge higher as U.S.-Japan trade deal lifts sentiment
India’s equity benchmarks gained slightly on Wednesday, following positive momentum across Asian markets after the U.S. finalized a trade agreement with Japan, raising hopes for additional global trade deals.
The Nifty 50 rose 0.18% to 25,106.4 points, while the BSE Sensex added 0.20% to 82,346.31 as of 9:51 a.m. IST. Gains were seen across most sectors, with 13 of the 16 major sectoral indexes advancing. However, broader markets underperformed, with the Nifty Smallcap 100 and Midcap 100 slipping about 0.3% each, News.Az reports, citing Reuters.
Japanese shares led the surge in Asian equities, while MSCI’s Asia-Pacific index outside Japan gained 0.7%, buoyed by optimism surrounding the trade deal between Washington and Tokyo.
Despite the positive global sentiment, Indian markets were capped by uncertainty over an India-U.S. interim trade agreement. Talks have stalled over tariff cuts on key agricultural and dairy products ahead of U.S. President Donald Trump’s August 1 deadline, according to Indian government sources cited by Reuters.
Meanwhile, India and the UK are set to finalize a free trade agreement on Thursday during Prime Minister Narendra Modi’s visit to London, a deal expected to strengthen bilateral trade ties.
“The U.S.-Japan trade deal is a major sentiment booster, raising hopes that Washington could successfully conclude talks with other key partners, including India,” said Kranthi Bathini, director of equity strategy at Wealthmills Securities. “Additionally, optimism over a potential India-UK trade agreement and steady earnings from top lenders like HDFC Bank and ICICI Bank are also supporting market momentum,” he added.
Among individual stocks, Colgate-Palmolive India (COLG.NS) fell 2.1% after reporting a decline in quarterly profit, weighed down by rising competition and sluggish urban demand.
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