Mumbai: Despite the ongoing geo-political tensions, the Indian stock markets witnessed a strong rally on Monday, with both Sensex and Nifty surging over 1 per cent during intra-day trade, while broader markets also seeing brisk buying.
Around 1:15 pm, the Sensex was trading at 80,259.03, up by 1,046.5 points or 1.32 per cent, while the Nifty jumped nearly 300 points to trade above 24,300 during the intra-day session.
Hopes of a new India-US trade deal also played a major role in lifting investor sentiment, along with strong corporate earnings and positive global cues, leading to a steady surge across the markets.
Reports suggested that India and the US might soon finalise a bilateral trade agreement (BTA). If that happened, India could become the first country to avoid reciprocal tariffs with the US.
The agreement was expected to open up opportunities for Indian companies in sectors like telecommunications equipment, biotechnology, artificial intelligence, pharmaceuticals, quantum computing, and semiconductors.
Investors hoped that China would announce more stimulus measures to support its economy, which further helped global market sentiment.
While US futures showed a slightly muted trend during the session, the overall sentiment remained positive.
Pharma stocks were among the top performers on Monday. The Nifty Pharma Index and the NSE Healthcare Index both rose nearly 2 per cent during the intra-day trade.
The sector got a boost from the calmness around further US tariff announcements and the historical trend of positive returns for pharma stocks in April. Investors also looked forward to key pharma earnings next month.
Earlier, the Indian equity benchmark indices opened higher amid mixed global cues, as buying was seen in the PSU bank and financial service sectors in the early trade.
Foreign institutional investors (FIIs) continued their buying streak for the eighth straight session. In April alone, FIIs purchased equities worth over Rs 32,000 crore. This consistent buying gave a major push to the overall market sentiment.
(IANS)
