Sensex, Nifty surge in early trade on hopes of India-U.S. trade deal, FII buying

Sensex and Nifty surge on India-U.S. trade deal optimism, record GST collection, and foreign fund inflows. Market resilience noted

Equity benchmark indices Sensex and Nifty surged in early trade on Friday (May 2, 2025) amid optimism surrounding a potential India-U.S. trade deal, record high GST collection in April, and continuous foreign fund inflows. Moreover, a firm trend in global markets also added to the optimism in equities.

The 30-share Bombay Stock Exchange (BSE) benchmark gauge jumped 500.81 points to 80,743.05 in early trade. The NSE Nifty surged 110.65 points to 24,444.85. Later, the Sensex quoted 816.41 points up at 81,064.47, and the Nifty climbed 222.30 points to 24,556.50.

From the Sensex firms, Adani Ports jumped nearly 5% after the firm reported a 50% in its March quarter net profit and issued a higher year-on-year revenue growth forecast for the current fiscal, citing strong growth in port volumes and a robust rise in the logistics business.

Maruti, IndusInd Bank, Axis Bank, ICICI Bank, Eternal and Mahindra & Mahindra were also among the gainers while Nestle, Titan, Bajaj Finserv and Hindustan Unilever were the laggards.

The surprising resilience of the market has been primarily driven by the sustained Foreign Institutional Investor (FII) buying for eleven trading days in a row taking the cumulative FII buying for this period to ₹37,375 crore, V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said.

"FII buying has been driven by weakness in the dollar and declining growth prospects in the U.S.. Other macros like declining interest rates in India, decline in crude prices, and green shoots of pickup in demand are positives for the market. The high probability of India among the five ‘allies’ of the US entering into early trade deals with the U.S. is also a significant positive factor," he added.

Goods and Services Tax (GST) collection rose 12.6% Y-o-Y to an all-time high of about ₹2.37 lakh crore in April, which the Government said shows the resilience of the Indian economy and the effectiveness of cooperative federalism.