Indian equity benchmarks closed sharply higher on Monday, buoyed by strong global cues and as traders cheered India-US interim trade agreement. Markets made a gap-up opening and maintained their upward momentum throughout the session, as sentiment remained upbeat with foreign portfolio investors (FPIs) turning net buyers in the first week of February, infusing more than Rs 8,100 crore into Indian equities.

Some of the important factors in trade:

India’s GDP to grow 6.4% in FY2026-27: Moody's Ratings has projected India's GDP to grow at 6.4 per cent in FY2026-27, the fastest pace among G-20 economies, driven by strong domestic consumption, policy measures, and a stable banking system.

India-US trade pact to open $30 trillion market for exporters: Traders took support with Commerce and Industry Minister Piyush Goyal’s statement that the India-US trade pact will open a $30 trillion market for Indian exporters, especially MSMEs, farmers and fishermen.

India’s forex kitty jumps by $14.36 billion to new peak of $723.77 billion: Sentiments remained optimistic as the Reserve Bank said that India's forex reserves jumped by another $14.36 billion to a new all-time high of $723.77 billion during the week ended January 30.

On the global front: European equity markets were trading mostly in green, led by a rebound in technology stocks after last week’s sharp sell-off triggered by AI-related jitters. Asian markets ended higher, ahead of the release of China’s January inflation and producer price data due later in the week.

The BSE Sensex ended at 84065.75, up by 485.35 points or 0.58% after trading in a range of 83860.42 and 84314.68. There were 21 stocks advancing against 9 stocks declining on the index. (Provisional)

The top gaining sectoral indices on the BSE were Consumer Durables up by 2.76%, Realty up by 2.64%, Basic Materials up by 2.06%, Industrials up by 1.94% and Telecom up by 1.94%, while Utilities down by 0.03% was only losing index on BSE. (Provisional)

The top gainers on the Sensex were SBI up by 7.57%, Titan Company up by 3.10%, Ultratech Cement up by 2.36%, Tata Steel up by 2.16% and Eternal up by 1.91%. On the flip side, Power Grid Corp down by 1.31%, NTPC down by 1.05%, ITC down by 0.98%, ICICI Bank down by 0.79% and Infosys down by 0.61% were the top losers. (Provisional)

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 ended at 25867.30, up by 173.60 points or 0.68% after trading in a range of 25780.90 and 25922.25. There were 35 stocks advancing against 15 stocks declining on the index. (Provisional)

The top gainers on Nifty were SBI up by 7.63%, Shriram Finance up by 6.03%, Grasim Industries up by 3.11%, Titan Company up by 3.09% and Dr. Reddy's Lab up by 2.76%. On the flip side, Max Healthcare Inst down by 2.82%, Power Grid down by 1.02%, ITC down by 0.95%, ONGC down by 0.87% and NTPC down by 0.86% were the top losers. (Provisional)

European markets were trading mostly in green; Germany’s DAX gained 124.24 points or 0.5% to 24,845.70 and UK’s FTSE 100 increased 12.66 points or 0.12% to 10,382.41, while France’s CAC fell 2.24 points or 0.03% to 8,271.60.