Sensex Jumps 639 Points As India-New Zealand Trade Agreement Lifts Investor Confidence

Sensex finished the session close to their highest levels of the day after India formalised a Free Trade Agreement with New Zealand in New Delhi.

The announcement improved overall market sentiment and encouraged broad-based buying.

The agreement, finalised in the presence of Commerce Minister Piyush Goyal and his New Zealand counterpart Todd McClay, ensures duty-free access for all Indian exports to New Zealand. It also significantly cuts or eliminates tariffs on 95 per cent of goods imported from New Zealand.

At the close of trade, the BSE Sensex gained 639.42 points, or 0.83 per cent, to finish at 77,303.63. The Nifty 50 rose 194.75 points, or 0.81 per cent, ending the day at 24,092.70.

Analysts observed that the 24,300-24,400 band remains a significant resistance zone for the Nifty. On the lower side, 23,900 now serves as immediate support, and a breach below this level could push the index towards 23,800.

Leading the gains on the Sensex were Adani Ports, Sun Pharma, NTPC, Tech Mahindra and Tata Steel. Meanwhile, Axis Bank, Bharat Electronics Limited, Trent and ICICI Bank ended the session in negative territory.

Broader indices outpaced the benchmarks, as the Nifty MidCap index advanced 1.55 per cent and the Nifty SmallCap index climbed 1.96 per cent.

Sector-wise, pharmaceutical, real estate and IT stocks led the rally, whereas private banking and financial services stocks lagged.

Market sentiment also improved due to signs of easing tensions between Iran and the United States. Reports indicated that Iran has proposed reopening the strategically vital Strait of Hormuz to the US.

The Indian rupee strengthened marginally to around 94.16 against the US dollar, registering a 0.07 per cent gain. Experts anticipate the currency to trade within a range of 93.75 to 94.50 in the near future, with volatility likely to remain high.

The trade agreement and supportive global cues have reinforced positive momentum in the markets, though investors are likely to remain cautious while monitoring key technical levels and geopolitical updates.