On Thursday, Indian stock markets rallied, with the Sensex increasing 790 points (1.1%) to close at 75,399, and the Nifty50 climbing 277 points (1.18%) to 23,689.60. This surge was driven by optimism following comments from Chinese President Xi Jinping regarding progress in trade discussions with US President Donald Trump. Both leaders emphasized the importance of keeping the Strait of Hormuz open for energy flows. Despite this positive momentum, concerns linger over persistent foreign portfolio outflows, which have reached a staggering ₹2.2 trillion this year, and the Indian rupee's depreciation to a record low of 95.9 against the dollar. While most sectors saw gains, the Nifty IT index fell 2%, reflecting worries about the impact of generative artificial intelligence on earnings growth. Analysts remain cautious, suggesting that the government may implement further measures to control imports and preserve foreign exchange reserves, especially after increasing customs duties on gold from 6% to 15%. Overall, while the market showed signs of recovery, macroeconomic pressures continue to pose risks.