Markets surge for 4th day; Sensex reclaims 78k-level amid US-Japan tariff talks, FII inflows

Benchmark indices Sensex and Nifty surged nearly 2 per cent on Thursday, registering their fourth day of rally, as investors turned buoyant after foreign investors returned to domestic equities amid expectations of a breakthrough in US-Japan trade negotiations over reciprocal tariffs.

The 30-share BSE benchmark Sensex jumped 1,508.91 points or 1.96 per cent to reclaim the 78,000 level. It finally settled at 78,553.20. During the day, it soared 1,572.48 points or 2.04 per cent to 78,616.77.

The NSE Nifty surged 414.45 points or 1.77 per cent to 23,851.65.

From the Sensex firms, Eternal, ICICI Bank, Bharti Airtel, Sun Pharma, State Bank of India, Bajaj Finserv, Kotak Mahindra Bank and Reliance Industries were among the biggest gainers.

Tech Mahindra and Maruti were the laggards.

Foreign Institutional Investors (FIIs) bought equities worth Rs 3,936.42 crore on Wednesday, according to exchange data. On Tuesday, FIIs bought equities for Rs 6,065.78 crore.

In Asian markets, South Korea's Kospi index, Tokyo's Nikkei 225, Shanghai SSE Composite index and Hong Kong's Hang Seng settled higher.

European markets were trading in the negative territory.

US markets ended significantly lower on Wednesday.

The US and Japan are currently holding trade talks over reciprocal tariffs, with an aim to strike a deal soon.

"A strong rally in large-cap stocks was observed today, primarily driven by financials, amid expectations of improved margins stemming from changes in savings deposit interest rates. Positive sentiment was further supported by a reversal in FII flows, although the sustainability of this trend remains uncertain.

"Nonetheless, optimism surrounding the domestic market persists, bolstered by the expectation of a favourable outcome from US-India trade negotiations and a relatively minimal disruption from the US-China trade tensions. Additionally, a moderating inflation trajectory towards more comfortable levels is further enhancing market sentiment," Vinod Nair, Head of Research, Geojit Investments Limited, said.

Global oil benchmark Brent crude climbed 0.94 per cent to USD 66.47 a barrel.

Defying a weak global market trend on Wednesday, the BSE Sensex climbed 309.40 points or 0.40 per cent to settle at a two-week high of 77,044.29 in a volatile session. The Nifty rallied 108.65 points or 0.47 per cent to 23,437.20.

Stock markets will remain closed on Friday for 'Good Friday'.