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Key indices end higher on US-China trade hopes
Oct-27-2025

Indian equity benchmarks ended higher by over half percent on Monday following a sharp rally in global markets, as softer-than-expected US inflation reignited hopes of Fed rate cuts this year. Prospects of a US-China trade deal and fresh foreign fund inflows also added to the markets' optimism. Foreign Institutional Investors (FIIs) bought equities worth Rs 621.51 crore on Friday, according to exchange data. 

Some of the important factors in trade:

FY26 growth outlook strong despite global uncertainties: A finance ministry report said the growth outlook for FY26 remains strong, supported by domestic demand, lower inflation, monetary easing, and the positive effects of GST reforms despite global economic and trade policy uncertainties.

Forex reserves jump by $4.49 billion to $702.28 billion: India's forex reserves increased by $4.49 billion to $702.28 billion for the week ended October 17, as the value of gold reserves rose further.

Rupee slumps against US Dollar: Indian rupee fell sharply against the US dollar, as broad strength in crude oil prices and month-end dollar demand from importers weighed on investor sentiment.

Auto stocks in watch: The SIAM in its latest data has showed that total passenger vehicle exports rose to 4,45,884 units in H1 FY26 as compared with 3,76,679 units in the year-ago period, an increase of 18.4 per cent, with Maruti Suzuki leading the segment with shipment of over 2 lakh units.

Global front: European markets were trading mostly in green as traders looked ahead to a busy week of central bank announcements that includes rate decisions from the Federal Reserve, European Central Bank and the Bank of Japan. Asian markets settled mostly higher on Monday as softer-than-expected U.S. inflation report raised hopes of additional Federal Reserve rate cuts in 2025 and reports suggested that the United States and China were closing in on a trade deal. 

Finally, the BSE Sensex rose 566.96 points or 0.67% to 84,778.84 and the CNX Nifty was up by 170.90 points or 0.66% to 25,966.05. 

The BSE Sensex touched high and low of 84,932.08 and 84,294.20 respectively. There were 22 stocks advancing against 8 stocks declining on the index.   

The broader indices ended in green; the BSE Mid cap index rose 0.72%, while Small cap index was up by 0.51%.

The top gaining sectoral indices on the BSE were Telecom up by 2.37%, Oil & Gas up by 1.50%, Energy up by 1.44%, Realty up by 1.42% and Metal up by 1.10%, while Healthcare down by 0.05% was the lone losing index on BSE.

The top gainers on the Sensex were Bharti Airtel up by 2.56%, Reliance Industries up by 2.24%, Eternal up by 2.19%, SBI up by 2.08% and Tata Motors up by 1.64%. On the flip side, Kotak Mahindra Bank down by 1.74%, Bharat Electronics down by 1.62%, Infosys down by 1.35%, Adani Ports &SEZ down by 0.56% and Bajaj Finance down by 0.47% were the top losers.

Meanwhile, Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman, has stressed upon the need for the next generation revenue infrastructure to work in tune with the next generation taxation, and called for greater empathy, greater courtesy, and greater integrity on part of all tax officers. Besides, Sitharaman said that the ultimate goal of reforms is to make life easier for honest taxpayers, and make them feel comfortable about every change being made in the existing statutory framework.

Elaborating on the recently launched GST 2.0, Union Finance Minister noted that it has created a remarkable global buzz and stands as a symbol of India’s progressive economic vision. She highlighted that the reform has generated significant employment opportunities during the festive season of Navratri and Diwali and has made life easier for the common man - a fact reflected in the surge of purchases, production, and online transactions following its implementation. 

Sitharaman commended the Central Board of Indirect Taxes and Customs (CBIC) for its efficiency and appreciated the successful rollout of GST 2.0 ahead of the Diwali deadline set by the Prime Minister.  Minister also lauded the efforts of CBIC and its field formations in strengthening India’s tax administration and advancing a transparent, citizen-centric governance framework. Sitharaman further emphasised on technology-driven compliance with simplified procedures, enhanced transparency, and voluntary participation among taxpayers. 

CNX Nifty touched high and low of 26,005.95 and 25,827.00 respectively. There were 38 stocks advancing against 11 stocks declining, while 1 stock remained unchanged on the index.    

The top gainers on Nifty were Grasim Industries up by 3.22%, SBI Life Insurance up by 3.16%, Bharti Airtel up by 2.65%, SBI up by 2.48% and Reliance Industries up by 2.18%. On the flip side, Kotak Mahindra Bank down by 1.72%, Bharat Electronics down by 1.60%, Bajaj Finance down by 0.66%, Adani Enterprises down by 0.57% and ONGC down by 0.53% were the top losers.

European markets were trading mostly in green; France’s CAC rose 5.57 points or 0.07% to 8,231.20, Germany’s DAX gained 20.41 points or 0.08% to 24,260.30, while UK’s FTSE 100 decreased 2.82 points or 0.03% to 9,642.80.

Asian markets settled mostly higher on Monday with Chinese shares hitting a new 10-year high following high-level trade talks in Malaysia. US Treasury Secretary Scott Bessent said Washington and China have reached a very substantial framework that would prevent the US from imposing 100% tariffs on Chinese goods and allow for a deferral of China's rare earths export controls. While investors also cheered after data showed China's industrial profits soared 21.6% in September from a year ago, marking the biggest jump since November 2023. Moreover, Japan’s Nikkei closed above the psychological threshold of 50,000 for the first time on expectations of sizeable spending from the nation's new prime minister, Sanae Takaichi. Market sentiments improved further by tracking Wall Street’s gains last Friday and as cooler-than-expected US CPI data reinforced views that the Federal Reserve will cut the fed fund rate by another 50 bps by year-end.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,996.94

46.63

1.18

Hang Seng

26,433.7

273.55

1.05

Jakarta Composite

8,117.15

-154.57

-1.90

KLSE Composite

1,618.38

5.11

0.32

Nikkei 225

50,512.32

1,212.67

2.46

Straits Times

4,440.30

18.09

0.41

KOSPI Composite

4,042.83

101.24

2.57

Taiwan Weighted

27,993.63

461.37

1.68
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