(HT)
Indian shares advanced on Monday, extending gains from the previous session, on easing global trade tensions and the Reserve Bank of India’s (RBI) record dividend transfer, which ended up reaffirming prospects of sustained fiscal consolidation.
The Nifty 50 closed 0.6% higher at 25,001.15.
Meanwhile, the BSE Sensex traded 0.56% higher to close at 82,176.45.
US President Donald Trump had also backed off on his threat to impose 50% tariffs on imports from the European Union (EU).
This had the effect of easing trade concerns and also potentially hinting “that the US may reduce its aggression in the trade war, which is a positive,” according to G Chokkalingam, the founder and head of research at Equinomics Research and Advisory.
As a result, the US and EU now have time until July 9 to work on a trade deal.
In the Indian stock market, all the 13 major sectors logged gains.
Metals jumped about 1%. This was the result of a weaker US dollar as well as Trump’s reprieve which eventually ended up boosting the appeal of commodities.
Auto, pharma and IT gained about 1%.
Financials, the heaviest-weighted sub-index, added 0.4%.
Midcaps and smallcaps also saw a rise at 0.7% and 0.4%, respectively.
The RBI board’s decision to transfer a record ₹2.69 lakh crore ($31.6 billion) as surplus to the federal government for the fiscal year ended March could also play a role in helping the government reduce its fiscal deficit drastically, said Chokkalingam.
Analysts said that India’s domestic fundamentals — which includes a projected GDP growth of more than 6% in fiscal 2026, an early onset of the southwest monsoon and moderating inflation — remain supportive, despite global uncertainty.
Among the individual stocks, JSW Steel rose 2.4%. This happened after the Supreme Court of India paused the liquidation proceedings of Bhushan Power and Steel (BPSL), weeks after it rejected JSW Steel’s deal to acquire the debt-ridden firm and ordered its liquidation.
Bajaj Auto Ltd also gained 2.4%.
This came after the two-wheeler maker entered a call option deal with Austria’s Pierer Group for taking a controlling stake in the troubled motorcycle maker KTM.
