Stock market today: NIFTY50 crosses 25,000 for first time in seven months, here's why

The Indian benchmark equity indices posted a strong rally during the mid-market session on Thursday. The NIFTY50 hit a seven-month high by crossing the 25,000 mark while the SENSEX jumped more than 1,350 points during the session.

The SENSEX ended 1,267 points higher at 82,597.63 and NIFTY50 climbed 395 points to close at 25,062.

However, the broader market was trading with 0.5% gains in the afternoon. The NIFTY Midcap 100 rose 0.70% at the 56,531.65 level, and the NIFTY Smallcap 100 jumped 0.52% higher at the 17,326 level.

Sectorally, all the gauges were in green, indicating a broad-based buying in the markets. NIFTY Auto, Realty, Media, Metals and Financial Services were the top gainers, advancing up to 1.89%.

Here are the key factors for today’s rally

Probable US-India trade deal

US President Donald Trump mentioned in Doha that India and the US are closer to signing a trade deal soon. Trump mentioned that India has offered practically zero tariffs on US imports. The trade deal with the US would remove the key overhang on the Indian markets.

However, the Government of India is yet to confirm or officially comment on the remarks made by the US President.

Expiry day volatility

The sudden spike in the markets was also due to expiry day volatility. NIFTY50 has its weekly expiry, and the options data indicated a broad range of 24,500 to 25,000 for today’s expiry.

FII inflows

Foreign investors continued buying position is also boosting the market sentiment. Exchange data for Wednesday showed that the foreign institutional investors (FII) bought ₹931.80 crore on a net basis. In April, net investment by foreign investors were ₹4,223 crore, marking the first inflow after three months.