A wave of optimism swept through Dalal Street on Monday, closing Indian stock benchmarks firmly in positive territory. Driven by the India-US trade deal announcement, Sensex rose 485.35 points (0.58%) to 84,065.75, and Nifty gained 173.60 points (0.68%) at 25,867.30.
The rally was comprehensive, encompassing consumer durables, PSU banks, realty, India defence, metals, pharma, and healthcare sectors. Even typically volatile segments joined the upward march, highlighting robust investor appetite.
Sensex heavyweights like SBI, Titan, Tata Steel, UltraTech Cement, Eternal, BEL, Kotak Mahindra Bank, Trent, IndiGo, M&M, L&T, Adani Ports, and Asian Paints posted impressive advances, fueling the index’s climb.
Contrastingly, Power Grid, ITC, NTPC, ICICI Bank, Infosys, HDFC Bank, Tech Mahindra, and Maruti ended in the red, reflecting selective profit booking in select names.
The trigger for today’s exuberance was undoubtedly the Sunday joint communique on India-US trade. US tariffs on Indian goods plummeted from 50% to 18%, with zero duties on key exports. This policy shift promises to revitalize bilateral trade, aiding India’s export-driven growth story.
Broader market indices echoed the strength: Nifty Midcap 100 surged 1.58% to 60,441.15, and Nifty Smallcap 100 rocketed 2.64% to 17,385.90, pointing to strong domestic sentiment.
SBI Securities’ Sudeep Shah analyzed, ‘Markets opened higher, dipped briefly, then traded sideways before closing at Nifty 25,867. Key resistance at 25,970-26,000; break above could target 26,200-26,400. Supports at 25,780-25,750.’
This development arrives at a critical juncture for Indian markets, potentially setting the stage for further gains amid favorable macros. Traders are advised to monitor resistance levels closely.