Sensex settles nearly 500 pts higher, Nifty above 25,850: India-US trade deal among key factors behind market rise

Stock market today news: Sensex, Nifty rise in trade.

• Sensex and Nifty rose Monday on India-US trade optimism and strong Asia cues.
• SBI, Adani, Shriram Finance rose; Max Healthcare, ITC fell.
• Foreign investors became net buyers; lower crude prices boosted market sentiment.

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The benchmark equity indices Sensex and Nifty started the week on a higher note on Monday, supported by optimism over an interim trade framework between India and the United States and firm trends in Asian markets.

The Sensex settled 485.35 points or 0.58 percent higher at 84,065.75, while the broader NSE rose to 25,867.30, up 173.60 points or 0.68 percent.

Fifteen of the 16 major sectors rose. The broader small-caps and mid-caps gained more than 1 percent.

State Bank of India, Adani Enterprises and Shriram Finance were the top gainers in the Nifty50 pack, rising up to 7 percent, while Max Healthcare Institute and ITC were among the key laggards, declining up to 1 percent. Market breadth was positive as bout 2736 shares advanced, 941 shares declined and 153 shares unchanged.

Key factors driving market rally

1) India-US trade framework: Markets reacted positively after India and the US announced an interim trade framework on Friday aimed at lowering tariffs, strengthening energy ties and deepening economic cooperation.

Devarsh Vakil, Head of Prime Research at HDFC Securities, said India and the US have reached an interim trade agreement ending a ten-month tariff dispute, with Washington reducing tariffs on Indian goods. He added that India protected sensitive agricultural sectors while committing to purchase goods from the US over the next five years, with focus on energy, aircraft and defence technology.

2) SBI results: SBI shares jumped nearly 7 percent to a fresh record high after the public lender’s Q3 results surpassed expectations. Several brokerages raised their target prices for the stock. The shares of the company hit a fresh 52-week high of Rs 1,137 per share on Monday.

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3) FII buying: Foreign institutional investors were net buyers in the equity market, purchasing shares worth Rs 1,950.77 crore on Friday.

Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said there has been a change in foreign fund flows in February so far, with FIIs turning net buyers. He said currency movement has played a role in improving sentiment and could support further inflows.

4) Positive global cues: Asian markets traded higher, with Japan’s Nikkei 225, South Korea’s Kospi, Shanghai’s SSE Composite and Hong Kong’s Hang Seng index in the green. US markets ended more than 2 percent higher on Friday.

Vakil said firm global cues, particularly from Japan, have improved risk appetite, which has also supported Indian equities.

5) Crude oil prices: Brent crude, the global oil benchmark, fell 0.94 percent to USD 67.41 per barrel. Lower crude prices tend to support Indian equities by easing inflationary pressures and reducing the country’s import bill.

Technical outlook

Anand James, Chief Market Strategist at Geojit Investments, said the recent movement suggests some loss of upside momentum, though sustained buying interest could still support a rebound. He added that the market’s ability to hold above key support levels will be crucial in the near term.

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