India Market Wrap: Nifty Reclaims 25,000 After 7 Months; Auto, Metals, Reliance Lead Rally

Indian equity benchmarks rallied to a seven-month high on Thursday, buoyed by strong buying in auto, metal, and energy heavyweights. Optimism over a potential U.S.-India trade deal further lifted investor sentiment.

The Nifty 50 breached the 25,000 mark for the first time since October 2024, closing at 25,062, up 395 points, while the Sensex climbed 1,200 points to settle at 82,530. 

Nifty momentum was largely driven by gains in Hero MotoCorp, Tata Motors, JSW Steel, HCL Tech, and Trent.

A Reuters report added fuel to the rally, quoting U.S. President Trump, who claimed that India had offered a zero-tariff trade deal. 

Broader markets underperformed, with the Nifty Midcap index gaining 0.5%. 

Metal and defense stocks continued their upward trend. Notable gainers included JSW Steel (+5%), Tata Steel (+1%), and NALCO (+3%).

Cochin Shipyard ended 8% higher on earnings cheer. Meanwhile Zen Tech gained another 5%, and other PSU defense counters like Mazagon Dockyard, BEL, and BDL logged gains between 2%-3%.

Reliance Industries' stock rose by 2% following reports of a $2.9 billion dual-currency offshore loan, the largest by an Indian firm in over a year.

On the downside, IndusInd Bank was the only Nifty stock to close in the red after reports of a fresh internal audit. 

Muthoot Finance plunged 7% despite strong Q4 earnings as Reserve Bank of India's draft loan-to-value guidelines triggered investor concerns. 

Jubilant FoodWorks fell over 1% post muted earnings.

Kalpataru Projects gained 4% after securing fresh orders worth ₹2,372 crore.

Retail sentiment on Stocktwits surrounding the Nifty 50 turned ‘neutral’.

Globally, sentiment was subdued. European markets traded mixed, and U.S. futures pointed to a weak open ahead of key macroeconomic data releases.

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