New Delhi

Benchmark Indian equity indices closed higher on Monday, beginning the week on a positive note amid optimism surrounding an interim trade agreement with the United States and expectations of renewed foreign institutional investor (FII) participation.

The BSE Sensex ended the session at 84,065.75, gaining 485.35 points or 0.58 per cent, while the NSE Nifty settled at 25,867.30, up 173.60 points or 0.68 per cent.

Market sentiment was supported by encouraging developments on the trade front and improving earnings visibility. Vinod Nair, Head of Research at Geojit Investments Limited, said positive signals from the interim trade deal and indications of FII return triggered a risk-on environment.

“Investors are closely tracking corporate earnings, with PSU banks reporting better-than-expected results, leading to outperformance in the PSU banking index,” Nair said.

He added that selective accumulation was witnessed in consumer durables and real estate stocks following recent corrections, driven by hopes of a demand revival. Broader market participation was seen across sectors such as cement, capital goods, textiles and consumer discretionary, aided by Union Budget proposals and favourable trade developments.

Ponmudi R, CEO of Enrich Money, noted that supportive cues from other Asian markets also helped sustain the upward momentum during the session.

However, he cautioned that investor participation remained measured, as market participants avoided aggressive positions ahead of key global and domestic macroeconomic indicators.

India and the United States last week announced a framework for an interim reciprocal trade agreement aimed at enhancing bilateral trade and addressing non-tariff barriers. The development followed a recent phone conversation between Prime Minister Narendra Modi and US President Donald Trump.

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Under the revised arrangement, tariffs on Indian goods entering the US, which had been raised to 50 per cent since August 2025, have been reduced to 18 per cent, providing relief to Indian exporters and improving market sentiment.