The Indian equity markets started the week positively, benefiting from a clearer India-US trade framework and improved domestic fundamentals. The Sensex rose by 370 points, reaching 83,950, while the Nifty gained 117 points to settle at 25,811. Notably, broad-cap indices like Nifty Midcap 100 and Nifty Smallcap 100 also saw gains.
Market sectors showed positive trends, with all sectoral indices trading in the green. Notable gainers included PSU banks, up by 2.45%, and metals, up by 1.56%. Analysts highlighted that the India-US trade pact has boosted export visibility and reignited foreign investor interest, contributing to the positive market sentiment.
Market watchers pointed out that the RBI’s decision to maintain the repo rate, coupled with stable growth outlook and benign inflation expectations, is reinforcing macroeconomic stability. Additionally, factors such as easing geopolitical tensions, strong domestic institutional inflows, and a stabilizing rupee are further bolstering market optimism.
In the global context, Asian markets also showed positive movements, with indices in China, Japan, Hong Kong, and South Korea posting gains. Furthermore, the US markets closed on a positive note in the last trading session, with Nasdaq, S&P 500, and Dow Jones all registering gains. Foreign institutional investors (FIIs) were net buyers of equities, while domestic institutional investors (DIIs) were net sellers on February 6.
