Benchmark stock market indices opened higher on Thursday, as positive comments from the US signalling a possible US-India trade deal boosted market sentiment. Q2 earnings also lifted the markets.

The S&P BSE Sensex added 350.94 points to 82,956.37, while the NSE Nifty50 gained 83.45 points to 25,407.00, as of 9:21 am.

Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that katest comments from the US administration indicate reduction in the India-US trade tensions and points to the possibility of a US-India trade deal in the next few weeks.

"China's tough actions regarding the rare earth magnets have hit the US hard and, therefore, the US is keen on striking a deal with India with both countries making some concessions," he added.

Even though Indian macros are robust and GDP growth projection for FY26 is being revised up, India's exports and jobs in labour intensive areas like textiles, gems and jewellery and leather products have been hit hard. In this context, a US-India trade deal will be a big boost to the markets. The low CPI inflation of 1.54% in September and the possibility of FY26 annual inflation declining to 2.6% open up the possibility of further rate cuts by the MPC. This, in turn, will boost the prospects of rate sensitives particularly automobiles, which are likely to experience sustained high demand for an extended period of time.