Indian equity benchmarks made gap-up opening on Monday tracking strong global cues and India reached for an interim trade agreement with the US. Sensex and Nifty were trading firm with around half a percent gain in early deals led by gains in Realty, PSU and Consumer Durables stocks. Some support came as foreign portfolio investors (FPIs) turned net buyers in the first week of February, infusing more than Rs 8,100 crore in Indian equities, aided by improving risk sentiment, along with a trade deal with the US. Traders took note of Commerce and Industry Minister Piyush Goyal’s statement that Indian goods will have a competitive advantage in US markets compared to products from China and other competitor countries, which face higher levies, following the reduction in reciprocal tariffs to 18 per cent.

On the global front, Asian markets were trading higher, following the broadly positive cues from Wall Street on Friday, boosted by strong gains in Japan following Prime Minister Sanae Takaichi's landslide victory in Sunday's general election as well as strength in the tech-heavy South Korean index amid easing concerns over AI-driven disruption. Besides, Japan posted a current account surplus of 728.8 billion yen in December.

The BSE Sensex is currently trading at 83960.68, up by 380.28 points or 0.45% after trading in a range of 83860.42 and 84314.68. There were 20 stocks advancing against 10 stocks declining on the index.

The top gaining sectoral indices on the BSE were Realty up by 1.98%, PSU up by 1.42%, Consumer Durables up by 1.28%, Telecom up by 1.01% and Industrials up by 1.01%, while Utilities down by 0.23%, Power down by 0.21%, FMCG down by 0.14% and Oil & Gas down by 0.04% were the top losing indices on BSE.

The top gainers on the Sensex were SBI up by 5.73%, Kotak Mahindra Bank up by 1.79%, Titan Company up by 1.54%, Eternal up by 1.41% and Larsen & Toubro up by 1.26%. On the flip side, Power Grid down by 1.21%, Hindustan Unilever down by 0.65%, Axis Bank down by 0.59%, Bajaj Finance down by 0.48% and ICICI Bank down by 0.44% were the top losers.

Meanwhile, after India and US reached to a framework for an Interim Agreement regarding reduction in reciprocal tariffs (RTs) to 18 per cent, Commerce and Industry Minister Piyush Goyal has said that the country’s trade of goods will gain a competitive advantage in US markets compared to products from China and other competitor countries. He said India will be benefited as RTs on the country are now among the lowest compared to its competitor nations. These countries include China (35 per cent), Thailand (19 per cent), Myanmar (40 per cent), Cambodia (19 per cent), Bangladesh (20 per cent), Indonesia (19 per cent), Brazil (50 per cent), and Vietnam (20 per cent).

With lower tariffs, India's labour-intensive sectors, such as textiles, leather and footwear, handicrafts, chemicals, and gems and jewellery, will be more competitively priced in the US market compared to these nations. He added that the comparative advantage always gives a country an edge in global markets. He said ‘The important thing is competitive advantage. Even when we reduce our tariffs (for US goods), it's about competitive advantage’.

Separately, Goyal has said adequate safeguards are in place in the trade agreement with the US to protect the interests of farmers and the domestic industry from any significant increase in imports. The trade deal with the US will ultimately help the country’s farmers, who are already exporting $50-55 billion worth of agricultural and fish products. Meanwhile, India and the US have finalised a framework for the first phase of the bilateral trade agreement, which is expected to be signed by mid-March.

The CNX Nifty is currently trading at 25812.00, up by 118.30 points or 0.46% after trading in a range of 25780.90 and 25922.25. There were 34 stocks advancing against 16 stocks declining on the index.

The top gainers on Nifty were SBI up by 5.67%, Dr. Reddy's Lab up by 1.80%, Kotak Mahindra Bank up by 1.73%, Titan Company up by 1.55% and Eternal up by 1.50%. On the flip side, Max Healthcare Inst down by 1.65%, Power Grid down by 1.18%, ONGC down by 0.87%, Hindustan Unilever down by 0.67% and Nestle down by 0.59% were the top losers.

All Asian markets were trading higher; Nikkei 225 surged 2362.32 points or 4.35% to 56,616.00, Taiwan Weighted jumped 807.88 points or 2.54% to 32,590.80, Hang Seng soared 387.05 points or 1.44% to 26,947.00, KOSPI rose 200.98 points or 3.95% to 5,290.12, Jakarta Composite gained 57.41 points or 0.72% to 7,992.67, Shanghai Composite added 47.7 points or 1.17% to 4,113.28 and Straits Times was up by 32.33 points or 0.66% to 4,966.74.