Sensex, Nifty: Why stock market is rising today after Modi-Trump meet

Stock market today: Stock market indices staged some recovery on Friday morning, after falling for seven consecutive sessions, after the Prime Minister Narendra Modi's meeting with the US President Donald Trump raised hopes of negotiations and possible trade deals that can avoid reciprocal tariffs by the US on India. Stock analysts, though, advised traders adopt a cautious approach by keeping positions light.

At 9.18 am, the BSE Sensex was trading at 76,472.46, up 333.49 points or 0.44 per cent. Nifty gained 81.75 points, or 0.35 per cent, to 23,113.15.

The two leader announced plans to firm up "some wonderful trade deals" for India and the US. Early indications from the Modi-Trump talks are positive from the market perspective, said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

"India’s willingness to buy more oil & gas from the US can help reduce the trade deficit with the US. Even though Trump is unlikely to back down on reciprocal tariffs, India is treated as a friendly country and the bonhomie between the two leaders augurs well for India. The oversold market can bounce back in the near-term but a sustained rally is unlikely since the FIIs continue to be on sell mode," Vijayakumar said.

Donald Trump said his administration is looking to closely work with India and announce a few large trade deals in the extreme near future. This could include large oil & gas purchases from the US, as two countries eye boosting bilateral trade to $500 billion by 2030 from $129.2 billion in 2024.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd said a big positive catalyst today is the potential for trilateral talks to end Russia's three-year war on Ukraine, with President Trump engaging both Russian President Putin and Ukraine’s President Zelenskiy. He noted that Wall Street rebounded sharply on Thursday, with the S&P 500 closing just shy of a record high, as Trump's tariffs are seen as less severe than expected. 

US markets saw a strong upmove higher overnight, with Dow Jones rising 342.87 points or 0.77 per cent to 44,711.43. S&P 500 settled over 1 per cent. Asian markets were mixed earlier today, with Japan and mainland China markets falling, but Hong Kong and Korea markets rising.    

"As we move forward in the unpredictable market landscape, it is wise to adopt a cautious approach by keeping our positions light. This means minimizing our exposure and being prepared to exit trades at regular intervals. Additionally, it is vital to remain vigilant and avoid making impulsive decisions driven by fleeting market trends, said Sameet Chavan, Head Research, Technical and Derivative at Angel One.