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.
Trade Deal Optimism Lifts Sentiment
The positive momentum was largely driven by the announcement of an interim framework for the India-US trade deal, which provided reassurance on the external trade front. Investors viewed the development as a constructive step towards stabilising bilateral trade relations.
Supportive trends in Asian markets further strengthened domestic sentiment, helping indices maintain their upward trajectory through the session.
Selective Participation Amid Cautious Undertone
Despite the strong headline gains, analysts observed that participation turned selective after the initial surge, with investors avoiding aggressive positioning ahead of key global and domestic macroeconomic triggers.
“Overall, the market appears to be in a phase of gradual recovery and consolidation, with the near-term direction likely to be driven by global macro developments, currency movements and the sustainability of risk-on sentiment reflected in foreign fund flows,” market experts said.
Technical Levels And Market Structure
From a technical perspective, immediate support for the Nifty is placed in the 25,550–25,600 zone, followed by a stronger demand band around 25,450–25,500, according to market watchers.
Bank Nifty continued to consolidate near the 60,500-60,700 range, suggesting a healthy pause following recent gains rather than signs of distribution.
Rupee Strengthens
In currency markets, the Indian rupee appreciated 0.12 per cent to close at 90.68 against the US dollar, reflecting improved investor sentiment and supportive capital flows.
With benchmarks extending gains for a second day and broader indices showing stronger traction, domestic equities appear to be entering a phase of measured recovery, though global cues and macro developments will remain key determinants of near-term direction.