FPJ News Service mumbai

Key indices indicated a sharp recovery on Thursday, and closed marginally higher as sentiment improved on renewed hopes of diplomatic dialogue between the US and Russia.

Recovering around 926 points from the day’s low, the 30-share Sensex closed higher by 79.27 points at 80,623.26. The index traded in the red for most of the session, and had tested a low of 79,811.29. However, fag-end buying helped recover losses and touch a high of 80,737.55. The 50-share NSE Nifty went up by 21.95 points to 24,596.15. According to Bajaj Broking Research, optimism was further fueled by reports of potential peace talks involving Trump, Putin, and Ukrainian President Zelensky, reviving expectations of a more dovish US stance on trade.

“Equities recovered from the intraday lows amid a volatile weekly expiry day. Although the earlier trade was weighed down by broad-based selling following steep US tariff hikes on India, sentiment improved toward the close as reports of potential peace talks involving Trump, Putin, and Zelensky which raised hopes of a softer US stance on trade,” said Vinod Nair, head of research, Geojit Investments.

“The 21-day window (the additional 25% tariff will be effective from Aug 27) for the additional leaves room for negotiation and an eventual deal with the US. But there is huge uncertainty surrounding the policy, and to what extent both nations will be willing to make compromises. Trump, fresh from the successes he has extracted in deals with others including the EU, is unlikely to budge significantly from his unjustified stand. India’s response has been mature and measured.  At least in the near-term, export-oriented sectors will remain weak.  Banking and financials, telecom, hotels, cement, capital goods and segments of automobiles will remain resilient,” opined a veteran investment strategist Dr VK Vijayakumar.