Indian equity markets opened higher on Monday, tracking supportive global cues and developments related to a trade understanding. The BSE Sensex opened 418 points higher at 83,999, while the Nifty 50 rose 123 points to open at 25,816. In early trade, the Nifty also touched an intraday high of 25,922.
Market sentiment was supported by a joint statement and interim trade understanding between India and the United States, which outlined the framework of the ITA. The development indicated a reduction in uncertainty related to tariffs.
The opening momentum followed the decision by US President Donald Trump to withdraw the additional 25 percent tariff earlier imposed on India in connection with imports of Russian oil. India indicated that it would halt direct and indirect imports of Russian oil and increase energy purchases from the United States.
Ahead of the domestic market opening, GIFT Nifty signalled a firm start. At around 07:00 am, GIFT Nifty was trading near 25,938, indicating a gain of about 241 points.
Asian markets also provided support. Japan’s Nikkei 225 rose about 4.5 percent following the election victory of Prime Minister Sanae Takaichi. South Korea’s Kospi advanced 4.4 percent, while Australia’s S&P ASX 200 was trading higher by around 1.57 percent.
US markets ended sharply higher on Friday. The S&P 500 gained 1.97 percent, the Nasdaq rose 2.18 percent, and the Dow Jones Industrial Average advanced 2.47 percent.
In early trade, banking and metal stocks saw buying interest. SBI rose about 5.7 percent. Tata Steel, Adani Ports and HCL Technologies were also trading higher. Shares of Eternal, Titan, Reliance Industries and Kotak Mahindra Bank were trading in positive territory.
Some stocks were under pressure in early trade. Power Grid declined about 1 percent. Bajaj Finance, ITC, Hindustan Unilever, ICICI Bank and Trent were trading lower. Maruti Suzuki and Bajaj Finserv also saw early weakness.
Market participants were tracking third-quarter results scheduled for release during the session. Companies set to announce Q3 results include Zydus Lifesciences, Linde India, GlaxoSmithKline Pharmaceuticals, Navin Fluorine, Ramco Cements, Pfizer, Graphite India, Jyothy Labs and Suprajit Engineering.
Activity was also seen in the primary market, with the public issues of Aye Finance and Fractal Analytics opening for subscription.
