Indian benchmark indexes started the week positively on Monday, as IT and public sector bank shares powered early gains.
A US court judgement, which held most of President Donald Trump's tariffs to be illegal but also permitted them to stay in effect through mid-October, and better-than-expected GDP data for June quarter boosted investor sentiment.
The Sensex gained 335 points, or 0.42%, to 80,144, and the Nifty 50 gained 104.30 points, or 0.43%, to 24,531.
The broader market gauges beat the blue-chip benchmarks as the Nifty Midcap 100 gained 0.85% and the Nifty Smallcap 100 rose 0.70%.
Sector-wise, the Nifty IT Index, up 1.59%, led the rally followed by Nifty Consumer Durables, up 0.98%. Nifty Metal and PSU Bank indices also increased by 0.78% and 0.79%, respectively. The Nifty FMCG Index was the sole loser, down 0.24%.
Amongst Nifty stocks, best performers were Tech Mahindra, TCS, Hero Motocorp, HCL Tech, and Trent. Conversely, Jio Financial dipped 1.14%, followed by Reliance, HUL, Maruti Suzuki, and Tata Consumer Products.
"Nifty 50 is trading below 100-DEMA, indicating weak trend and the risk of further decline if it goes below 24,350. Supports are at 24,350 and 24,150, and resistance is at 24,600–24,800," explained Mandar Bhojane of Choice Broking.
Experts are also keeping a close eye on China, India, and Russia, observing how their collective reaction to Trump's trade actions can shape global power balances and trade patterns.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, commented, "A US court verdict that Trump's tariffs are illegal is a big development, and the final verdict by the Supreme Court is important."
He further added, "Locally, India's Q1 GDP growth at 7.8% was above expectations. Fiscal steps taken in the budget and liquidity provided by the MPC are starting to yield results. Planned GST reforms should further spurt growth in the next couple of quarters."
US stocks closed down on Friday with the Dow Jones Industrial Average declining 0.2%, Nasdaq falling 1.15%, and the S&P 500 falling 0.64%.
Asian markets opened the week with diverse performances. China's Shanghai Composite increased 0.48% and Shenzhen climbed 0.52%, while Japan's Nikkei declined 2.03%. Hong Kong's Hang Seng increased 2.02%, and South Korea's Kospi decreased 0.83%.
In August, foreign institutional investors (FIIs) withdrew Rs 34,993 crore from Indian equities, their biggest withdrawal so far this year on fears of US tariff news and lackluster June-quarter corporate results.
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