Major stock market indices, including the Sensex and Nifty, saw a strong rebound in early trading on Monday. This upturn mirrored a significant global market rally, primarily driven by a softer-than-anticipated U.S. inflation report which has rekindled expectations of interest rate cuts by the Federal Reserve.
Adding to this market optimism were the growing prospects of a U.S.-China trade deal and a healthy inflow of foreign funds, further bolstering investor sentiment.
In India, the 30-share BSE Sensex surged by 272.7 points, reaching 84,484.58 in early trading, while the 50-share NSE Nifty advanced by 88.55 points to 25,883.70.
Leading the gains among Sensex constituents were heavyweights like Tata Steel, Bharti Airtel, Reliance Industries, State Bank of India, HDFC Bank, and NTPC.
Conversely, some of the companies that saw declines included Infosys, Bharat Electronics, Kotak Mahindra Bank, and Bajaj Finance.
Across Asia, major indices also displayed robust performance, with South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng all trading significantly higher.
This positive momentum followed strong closings in U.S. markets on the preceding Friday.
V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, highlighted the prevailing bullish global market sentiment. “With the Dow Jones, Nikkei, and Kospi all hitting record highs, investor confidence is clearly positive,” he stated, adding that “signals of easing global trade tensions are also playing a significant role.”
Exchange data revealed that Foreign Institutional Investors (FIIs) were net buyers, acquiring equities worth ₹621.51 crore on Friday.
Prashanth Tapse, Senior VP (Research) at Mehta Ltd, emphasized the impact of a surprisingly mild U.S. inflation report, which has “fueled hopes for Fed rate cuts.” He further noted that “the optimism is reinforced by potential U.S.-China trade agreements and even prospects of U.S. tariff reductions on Indian imports, possibly to 15-16%.”
In commodity markets, the global oil benchmark Brent crude also saw a slight increase, rising by 0.23% to $66.09 per barrel.
This strong Monday performance follows a slight dip on Friday, when the Sensex closed down 344.52 points (0.41%) at 84,211.88, and the Nifty fell 96.25 points (0.37%) to 25,795.15.