Sensex Surges 567 Points Amid Global Rally, Hopes Rise For US-China Trade Deal & Fed Rate Cuts

Mumbai: The benchmark BSE Sensex soared 567 points on Monday, following strong cues from global markets as investors cheered renewed optimism around US-China trade negotiations and softer US inflation data, which boosted expectations of Federal Reserve rate cuts this year.

The 30-share BSE Sensex climbed 566.96 points, or 0.67 percent, to close at 84,778.84, while the Nifty 50 advanced 170.90 points, or 0.66 percent, to end above the 25,900 mark at 25,966.05. During the session, the Sensex touched an intraday high of 84,932.08, rising over 720 points.

Broad-Based Gains Across Sectors

Market sentiment was buoyed by reports of progress in US-China trade discussions and continued foreign fund inflows. Analysts said these factors, along with easing global headwinds, spurred confidence among investors.

Top gainers on the Sensex included Bharti Airtel, Reliance Industries, State Bank of India, Tata Steel, HDFC Bank, and Eternal, while Kotak Mahindra Bank, Bharat Electronics, Infosys, and Bajaj Finance were among the laggards.

Among sectoral indices, PSU Banks outperformed, jumping 2.76 percent, supported by strong buying interest. However, defence and media stocks witnessed mild profit booking after recent rallies.

Global Markets Extend Rally

Asian markets mirrored the bullish tone, with South Korea’s Kospi, Japan’s Nikkei 225, China’s SSE Composite, and Hong Kong’s Hang Seng closing sharply higher. European markets traded mixed, while US indices had ended last week in positive territory.

Foreign Institutional Investors (FIIs) were net buyers, purchasing equities worth Rs 621.51 crore on Friday, as per exchange data.

Commenting on the market mood, Vinod Nair, Head of Research at Geojit Financial Services, said, 'Progress in US-China trade talks and softer CPI data renewed expectations of a Fed rate cut, boosting investor confidence. Easing global headwinds and strong domestic reforms continue to support premium valuations.'

Meanwhile, Brent crude prices slipped 0.85 percent to USD 65.38 per barrel, offering additional relief to Indian markets.

On Friday, the Sensex had declined 344.52 points to 84,211.88, while the Nifty had dropped 96.25 points to 25,795.15. Monday’s rebound signaled renewed optimism for investors heading into the week.