Sensex Smashes Past 81,000 as Markets Cheer Trade Talks, Oil Crash, GST Surge
The Sensex jumped 766.49 points—or 0.96%—to hit 81,008 on Friday, while the Nifty surged 251.65 points (1.03%) to 24,585.85. Both benchmark indices gained nearly 1% as investors reacted positively to global and domestic cues.
For everyday investors, this rally is more than just numbers—it’s relief. Relief that global uncertainty may finally be loosening its grip.
After a break for Maharashtra Day, markets opened with a bang. What’s driving this optimism?
1. China, US Hint at Trade Peace—Finally
Trade war fears eased after China said it may return to the table for talks with the US. That’s a big deal in a world tired of tariff tantrums. Kranthi Bathini of WealthMills Securities noted that both sides have expressed readiness to negotiate. Meanwhile, the US Trade Representative hinted at new deals “within weeks” with key partners.
What does this mean for Indian investors? It lowers the global risk tone—good for emerging markets like India.
But before you get too excited, remember: this is diplomacy, not a Netflix drama. It can turn cold real fast.
2. Crude Reality: Oil Prices Plunge
In another major boost, oil prices recorded their sharpest monthly drop in over three years. Saudi Arabia signaled it wants more market share and may up production.
That’s great news for India, a major oil importer. Lower oil means cheaper transport, lower inflation, and maybe even a breather for your monthly petrol bill.
3. India’s GST Hits Record High
India’s Goods and Services Tax (GST) collections rose 12.6% year-on-year to a record ₹2.37 lakh crore in April. That’s the highest since GST was rolled out in 2017.
Revenue from domestic transactions jumped 10.7%, while imports shot up 20.8%, according to HDFC Securities. This points to robust economic activity—despite global headwinds.
And yes, it’s the one tax story that doesn’t make you want to run.
4. Auto Sales Hold Steady
April auto sales met market expectations, helping boost sentiment. Mahindra & Mahindra led the charge, while Maruti Suzuki and Tata Motors posted modest gains. This suggests demand hasn’t slowed, despite inflation and high interest rates.
5. Adani Ports Leads Sensex Gainers
Among the Sensex pack, Adani Ports rose nearly 6% on strong Q4 results, followed by gains in Maruti, Tata Motors, and IndusInd Bank. In broader markets, 2,307 stocks advanced while 1,205 declined—indicating widespread optimism.
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But Caution Creeps In
Despite the green screens, some experts advise caution. VK Vijayakumar of Geojit Financial said valuations remain stretched. The Nifty is trading above 20x estimated FY26 earnings. Plus, rising India-Pakistan tensions could cloud the outlook.
His advice? Stay invested, but up your cash holdings. Translation: keep some chips off the table.
India–US Trade Deal: A Wild Card
Another positive development is the roadmap for an India–US trade deal. Nomura says India could maintain its tariff edge, thanks to its early moves. Reports suggest the pact spans 19 chapters, covering everything from digital trade to agriculture.
But here’s the thing: no one’s seen the full deal yet. So, file that under “good news, needs follow-up.”
Looking Ahead
JM Financial says May has historically been average for the Nifty—green six out of ten times, with median returns around 2%. So while today’s surge is welcome, don’t bet your house on a May miracle.
Disclaimer:
This article is for information only. It is not financial advice. Investing in the stock market comes with risks. Please do your own research or talk to a financial expert before making any decisions. The views and data shared are based on public sources and expert opinions available at the time of writing.
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