Indian equity markets extended their positive momentum on Monday, with benchmark indices Sensex and Nifty trading firmly in the green throughout the session, supported by sustained foreign fund inflows, upbeat Asian cues and optimism surrounding the fresh India-US trade agreement.
The BSE Sensex settled the session above 84K, climbing close to 500 points, while the NSE Nifty50 ended trading near 25,860, rallying more than 150 points.
On the 30-share Sensex, SBI, Titan, UltraTech Cement, Tata Steel, and Eternal settled among the gainers. Meanwhile, the laggards included PowerGrid, NTPC, ITC, ICICI Bank, and Infosys.
In the broader markets, the Nifty Smallcap50 and Nifty Smallcap100 indices closed the session 2.64 per cent higher each. Sectorally, the Media and Consumer Durables indices soared 4.37 per cent and 3.60 per cent respectively.
Benchmarks Trade Higher Through The Session
Both indices maintained gains across the trading day, reflecting steady buying interest in select heavyweights and improved risk appetite among investors. The Sensex climbed 441.77 points, or 0.53 per cent, to 84,022.17 in morning trade, while the Nifty rose 129 points, or 0.50 per cent, to 25,822.70.
The sustained upside came after a firm close on Friday, when the Sensex had advanced 266.47 points to settle at 83,580.40 and the Nifty gained 50.90 points to end at 25,693.70.
Foreign Inflows Turn Supportive
Foreign institutional investors (FIIs) bought equities worth Rs 1,950.77 crore on Friday, according to exchange data. Market participants pointed out that FIIs, who had been consistent sellers earlier, have turned buyers in the cash market in three out of the last four trading sessions, a development seen as a constructive signal.
“A big positive for the market is that FIIs who were sustained sellers in the market have bought in the cash market in three out of the last four trading days. The fact that the derivatives market continues to be heavily net short might impart resilience to the market, on expectations of short covering,” said V K Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.
He added that the recent ‘Anthropic shock’ is likely to continue impacting sentiment in the IT sector, even as banking stocks could remain relatively better placed.
India-US Interim Trade Deal Boosts Sentiment
Investor mood was further buoyed by developments on the trade front. India and the US on Saturday reached an interim trade agreement, effectively bringing an end to their ten-month tariff war.
According to Devarsh Vakil, Head of Prime Research at HDFC Securities, Washington agreed to reduce tariffs on Indian goods from 50 per cent to 18 per cent. India, meanwhile, successfully safeguarded sensitive agricultural sectors such as dairy while committing to purchase $500 billion worth of US goods over five years, focusing on energy, aircraft and defence technology.
Vakil noted that the deal strategically integrates India into the US-led Pax Silica initiative for critical minerals and AI supply chains, positioning the country as a counterweight to China in the Indo-Pacific.
Strong Global Cues
Vakil also pointed out that Japan’s ruling Liberal Democratic Party, led by Sanae Takaichi, secured a decisive victory, pushing the Nikkei to record highs. He said Indian equities could benefit as Japanese capital pivots away from China under Takaichi’s Economic Security policy, with significant FDI expected to flow into India’s infrastructure and technology sectors.
US markets had ended more than 2 per cent higher on Friday, reinforcing the positive global undertone. In the commodities market, Brent crude, the global oil benchmark, slipped 0.94 per cent to USD 67.41 per barrel, offering some relief on the inflation front.
With supportive foreign inflows, steady global cues and optimism around the India-US trade framework, domestic equities maintained a firm undertone through Monday’s trade, setting a constructive backdrop for the week ahead.
