Indian equities ended the trading session on a high note Monday, propelled by breakthrough news on the India-US trade deal. The benchmark Sensex jumped 485 points to 84,065.75, marking a 0.58% gain, as Nifty settled 173 points higher at 25,867.30, up 0.68%.
Sectoral indices shone brightly, with consumer durables, public sector banks, real estate, defence, metals, pharmaceuticals, and healthcare leading the gains. This widespread positivity underscores the market’s enthusiasm for pro-growth policies.
In the Sensex constituents, standout gainers were SBI, Titan Company, Tata Steel, UltraTech Cement, Eternal, Bharat Electronics, Kotak Mahindra Bank, Trent, InterGlobe Aviation (IndiGo), Mahindra & Mahindra, Larsen & Toubro, Adani Ports, and Asian Paints. These blue-chips drove the index upward amid high volumes.
However, not all stocks participated in the fiesta. Power Grid Corporation, ITC, NTPC, ICICI Bank, Infosys, HDFC Bank, Tech Mahindra, and Maruti Suzuki closed lower, dragged by profit-taking.
Market participants attributed the surge to a pivotal joint statement from India and the US on trade relations. Issued early Sunday, it slashed US tariffs on Indian exports from 50% to 18% and zeroed duties on multiple items. This tariff relief is expected to unlock billions in export potential, benefiting manufacturers and exporters alike.
Smaller stocks outperformed, with Nifty Midcap 100 up 1.58% at 60,441.15 and Nifty Smallcap 100 soaring 2.64% to 17,385.90. This indicates deepening market breadth.
According to Sudeep Shah from SBI Securities, ‘The session started bullish but corrected mildly before ranging. Nifty faces resistance at 25,970-26,000; upside targets are 26,200 and 26,400. Downside support at 25,780-25,750.’
With this trade deal in place, analysts foresee a bullish outlook, provided global cues remain supportive. The market’s reaction signals a vote of confidence in India’s trade diplomacy.