Equity markets rally to start week, Sensex climbs 485 points

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New Delhi: Indian stock markets began the week on a positive note on Monday, with benchmark indices closing higher amid optimism over the interim India–US trade agreement and expectations of renewed foreign institutional investor (FII) inflows.

The BSE Sensex ended the session at 84,065.75, gaining 485.35 points (0.58 percent), while the NSE Nifty closed at 25,867.30, up 173.60 points (0.68 percent).

Market experts said improved global sentiment and domestic sectoral strength supported the rally. Vinod Nair, Head of Research at Geojit Investments Limited, said the positive signals from the trade deal and the return of foreign investors helped create a risk-on sentiment in the market.

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He noted that PSU banks reported stronger-than-expected results, helping the PSU bank index outperform. Investors were also seen accumulating consumer durables and real-estate stocks after recent corrections, driven by expectations of a demand recovery.

The rally was broad-based, with sectors such as cement, capital goods, textiles, and consumer discretionary attracting investor interest. Analysts said Union Budget announcements and favourable trade developments contributed to the improved market mood.

Ponmudi R, CEO of Enrich Money, said positive cues from broader Asian markets also supported Indian equities during the session. However, he added that investor participation remained selective, as traders avoided aggressive positions ahead of key global and domestic macroeconomic triggers.

Last week, India and the United States announced a framework for an interim trade agreement aimed at promoting reciprocal and mutually beneficial trade. The two countries also agreed to address non-tariff barriers affecting bilateral trade.

The development followed a phone conversation between Prime Minister Narendra Modi and US President Donald Trump, after which both sides confirmed progress on the long-awaited trade deal. The United States had earlier imposed 50 percent tariffs on Indian exports in August 2025, which have now been reduced to 18 percent under the new agreement.

The easing of trade tensions is expected to support investor sentiment in the near term, analysts said.

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