Indian equity benchmarks began the week on a strong note on Monday, with the BSE Sensex jumping over 600 points and the Nifty 50 moving above the 25,700 level. The rally followed positive global cues after a key US ruling scrapped earlier tariff measures, easing concerns over trade disruptions and lifting market sentiment worldwide.
The upbeat mood triggered widespread buying across sectors, with metal stocks leading the gains amid a sharp rise in commodity prices. Export-oriented companies also attracted investor interest as the easing of trade barriers is expected to improve overseas demand and support earnings growth.
Precious metals, however, moved in the opposite direction to equities in terms of investment strategy, with gold climbing around 2 per cent and silver surging nearly 6 per cent. The sharp rise in safe-haven assets reflected underlying global uncertainty and volatility, even as stock markets advanced.
Market participants said the tariff relief has improved India’s trade outlook and could help boost foreign institutional inflows in the near term. A softer crude oil trend further supported sentiment, as lower energy prices are seen reducing input costs for companies and easing pressure on the country’s import bill.
Broader markets also participated in the rally, with mid-cap and small-cap stocks recording notable gains, indicating improving risk appetite among investors. Banking and financial stocks contributed to the upward move, though stock-specific caution remained in a few counters due to regulatory and corporate developments.
Analysts believe the sharp rise reflects a combination of global optimism and domestic resilience, but warned that volatility may persist. A proposed new US import duty, although less severe than previous tariffs, and fluctuating commodity prices could influence market direction in the coming sessions.
Despite these concerns, Monday’s surge added significant investor wealth and set a positive tone for the week, with the focus now shifting to global policy signals, institutional fund flows and movement in oil prices for further cues.
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