Domestic equity markets began the week on a strong footing on Monday, buoyed by improving investor sentiment amid clarity on the India–US trade deal, supportive domestic developments and encouraging global cues, market experts said.
The benchmark Nifty 50 index opened higher at 25,888.70, gaining 195 points or 0.76 per cent, while the BSE Sensex rose 597.11 points, or 0.71 per cent, to open at 84,177.51.
Market sentiment received a significant boost from progress on the India–US trade agreement framework, which has helped remove uncertainty around tariffs. Commenting on the development, market expert Ajay Bagga told ANI, “If you are not at the table, you are on the menu. India was facing punitive tariffs from the US since last year. These are now removed as the India-US trade deal framework gets implemented. This represents a big tailwind for Indian markets.”
Bagga added that markets thrive on certainty, noting that the conclusion of the first phase of the India–US trade deal has provided much-needed clarity. “Markets prefer clarity and certainty, and the conclusion of phase one of the India-US trade deal provides that. Indian market futures are up nearly 200 points this morning and are expected to see follow-through buying,” he said.
He further highlighted multiple domestic catalysts supporting the rally. “Indian markets will benefit from three big catalysts having worked through the economy and markets: earnings downgrades bottoming out with an improving outlook, a Union Budget that delivered on infrastructure spending while maintaining fiscal discipline, and progress on the US–India trade deal. A lot will now depend on foreign portfolio investor flows following through on these positives,” Bagga added.
Broader market indices also reflected strong buying interest. On the NSE, the Nifty 100 rose 0.72 per cent, the Nifty Midcap 100 gained 0.66 per cent, and the Nifty Smallcap 100 advanced 0.85 per cent, indicating broad-based participation.
Sectoral indices opened firmly in positive territory. Nifty PSU Banks surged over 2 per cent, while the Metal index climbed 1.5 per cent. The IT index gained 0.6 per cent, the Auto index rose 0.56 per cent, and FMCG stocks were up 0.3 per cent.
Precious metals extended their upward momentum as well. Gold prices jumped 1.51 per cent to Rs 1,57,693 per 10 grams for 24-carat gold, while silver prices surged 5.35 per cent to Rs 2,63,258 per kilogram.
Providing technical insights, Sunil Gurjar, SEBI-registered analyst and Founder of Alphamojo Financial Services, said the Nifty had staged a strong recovery. “The Nifty 50 index successfully recovered the losses of the previous three weeks, indicating strong and broad-based buying interest across the market. The rally was supported by positive triggers such as the announcement of a US–India trade agreement, sustained FII-DII inflows, and an in-line RBI policy outcome,” Gurjar told ANI.
He added that a sustained move above the 26,400 level could confirm further upside momentum, while a breakdown below 24,650 could trigger renewed downside pressure.
Global markets also contributed to the positive mood. Asian equities tracked gains on Wall Street following a rebound in US markets on Friday. Investor confidence was further lifted by political developments in Japan, where the government secured a landslide victory in snap elections held on February 8, signalling public support for fiscal stimulus and tax cut-driven policies.
