Indian equity markets continued to trade well above the unchanged lines supported by buying in IT and Technology stocks. Investors were cheered by India and Israel signing Bilateral Investment Agreement to boost investments and trade between two countries. The agreement is expected to boost investments, provide greater certainty and protection for investors, facilitating the growth of trade and mutual investments by ensuring a minimum standard of treatment, and an independent dispute resolution mechanism through arbitration. However, gains remained capped as persistent selling by Foreign Institutional Investors (FIIs) weighed on trading sentiments. FIIs were the net seller on Monday’s trade, offloading equities worth Rs 2,170.35 crore.

On the global front, Asian equity markets were trading mixed ahead of key U.S. inflation readings due this week that could influence the Federal Reserve's rate trajectory. European equity markets were trading mostly in green ahead of release of France’s Industrial production data. The street expects industrial output to fall 1.4% month-on-month in July, in contrast to the 3.8% rise in June.

The BSE Sensex is currently trading at 81162.55, up by 375.25 points or 0.46% after trading in a range of 80927.97 and 81181.37. There were 21 stocks advancing against 9 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.13%, while Small cap index was up by 0.18%.

The top gaining sectoral indices on the BSE were IT up by 2.66%, TECK up by 2.22%, Telecom up by 0.73%, FMCG up by 0.53% and Healthcare up by 0.50%, while Oil & Gas down by 0.29%, Realty down by 0.29%, Energy down by 0.17%, Consumer Durables down by 0.10%, Consumer Discretionary down by 0.10% were the top losing indices on BSE.

The top gainers on the Sensex were Infosys up by 4.92%, Tech Mahindra up by 2.42%, Adani Ports & SEZ up by 2.23%, HCL Technologies up by 1.73% and TCS up by 0.98%. On the flip side, Trent down by 1.73%, Eternal down by 1.09%, Titan Company down by 0.63%, Ultratech Cement down by 0.61% and Tata Motors down by 0.51% were the top losers.

Meanwhile, following the upward revision in tariff rates by the US and its consequent adverse impact on India’s overall apparel exports, rating agency ICRA in its latest report has revised the outlook on the Indian Apparel (exports) industry to Negative from Stable. If the recently imposed tariffs continue, ICRA expects the revenues of apparel exporters to decline by 6-9% in FY2026, in spite of the implementation of the Free Trade Agreement (FTA) with the UK and diversion of supplies to other geographies. 

Consequently, ICRA forecasts their operating profit margins to compress to around 7.5% in FY2026 from 10% in FY2025, on relatively weaker operating performance in H2 FY2026, caused by contraction in volumes leading to decline in operational efficiencies. With lower earnings and higher working capital dependance, the credit metrics are also expected to moderate.

As per the report, with the increase in tariff rates by 50%, over and above the baseline rates, with effect from August 27, 2025, the competitiveness of Indian apparel exporters will come under pressure and thus impact their revenue growth prospects and margins. While the preponement of shipments to the US, ahead of the additional tariff imposition, has lifted apparel exports in certain product categories in the recent months, exports in H2 FY2026 will likely be weak, should the prevailing scenario continue.

The CNX Nifty is currently trading at 24872.00, up by 98.85 points or 0.40% after trading in a range of 24814.00 and 24891.80. There were 33 stocks advancing against 17 stocks declining on the index.

The top gainers on Nifty were Infosys up by 4.82%, Dr. Reddy's Laboratories up by 3.02%, Wipro up by 2.58%, Tech Mahindra up by 2.42% and Adani Ports & SEZ up by 2.08%. On the flip side, Trent down by 1.89%, Eternal down by 1.18%, Jio Financial Services down by 1.00%, Titan Company down by 0.66% and Ultratech Cement down by 0.64% were the top losers.

Asian equity markets were trading mixed; Nikkei 225 slipped 123.81 points or 0.28% to 43,520.00, Hang Seng advanced 289.09 points or 1.12% to 25,923.00, Taiwan Weighted added 307.8 points or 1.24% to 24,855.18 and KOSPI increased 40.46 points or 1.24% to 3,260.05, while Straits Times fell 12.44 points or 0.29% to 4,296.08, Shanghai Composite weakened 19.55 points or 0.51% to 3,807.29 and Jakarta Composite plunged 127.87 points or 1.67% to 7,638.98.

European equity markets were trading mostly in green; UK’s FTSE 100 increased 10.06 points or 0.11% to 9,231.50 and France’s CAC rose 0.46 points or 0.01% to 7,735.30, while Germany’s DAX lost 138.23 points or 0.58% to 23,668.90.