Indian equity markets closed firmly higher on Monday, extending recent gains as optimism around an interim India–US trade framework and supportive global cues boosted investor sentiment. Broad-based buying across sectors, along with strong participation from mid- and small-cap stocks, underpinned the rally.
The benchmark BSE Sensex surged 485 points, or 0.58 per cent, to settle at 84,065, while the Nifty 50 advanced 0.68 per cent to close above the key 25,850 mark at 25,867. The positive momentum reflected growing confidence in India’s macroeconomic outlook and expectations of improved trade and investment flows.
Sectoral Performance: Cyclicals Lead the Charge
Buying interest was widespread, with most sectoral indices ending the day in the green. Realty, metals and PSU banking stocks emerged as the top performers, benefiting from expectations of sustained domestic demand, improving balance sheets and a favourable policy environment.
PSU banks continued their strong run, supported by improving asset quality and steady credit growth, while metal stocks gained on hopes of better global demand and easing geopolitical risks. Realty stocks also saw renewed interest amid optimism over housing demand and stable interest rate expectations.
Midcap and smallcap stocks outperformed the benchmark indices, indicating improving risk appetite among investors.
Trade Deal Hopes and Global Cues Lift Sentiment
Market participants remained encouraged by positive signals around an India–US trade understanding, which is seen as a potential catalyst for exports, manufacturing and foreign capital inflows. Analysts believe that greater clarity on trade relations could help revive foreign institutional investor (FII) interest, which has been selective in recent months.
Global markets also provided supportive cues, with strong gains in Asian equities and a positive close on Wall Street in the previous session. Easing geopolitical tensions and expectations of stable monetary policy in major economies further aided sentiment.
Macro Stability Supports the Rally
Domestic fundamentals continued to offer comfort to investors. Expectations of benign inflation, a stable interest rate environment and sustained government-led capital expenditure have reinforced confidence in India’s medium-term growth prospects. Robust domestic institutional inflows have also played a key role in cushioning volatility and supporting market resilience.
Market Outlook
Analysts said the Nifty’s ability to hold above the 25,850 level signals underlying strength, though near-term movements may remain sensitive to global developments and cues on foreign fund flows. The focus in the coming sessions will be on the durability of the rally, corporate earnings commentary and further updates on trade and policy developments.
For now, the broader market trend remains constructive, with investors selectively positioning themselves in sectors linked to economic growth, infrastructure and global trade recovery.