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Indian equity markets closed higher on Monday as the BSE Sensex rose 485.35 points to 84,065.75. NSE Nifty 50 gained 173.60 points to 25,867.30, up 0.68 per cent.

Market participants said improving domestic sentiment, positive global cues and clarity on the India-US interim trade deal supported the rally.

Among sectoral indices, Nifty Auto rose 0.99 per cent, Nifty Bank gained 0.91 per cent, and Nifty Financial Services advanced 1.25 per cent. Nifty FMCG increased 0.32 per cent, and Nifty IT was up 0.02 per cent.

Nifty Media led gains with 4.37 per cent. Nifty Metal rose 1.56 per cent, and Nifty Pharma gained 1.50 per cent. Nifty PSU Bank climbed 3.34 per cent, and Nifty Realty advanced 2.61 per cent.

In individual stocks, SBI rose 7.57 per cent, Titan gained 3.10 per cent, and Ultracemco increased 2.36 per cent. Tata Steel rose 2.16 per cent and Eternal advanced 1.91 per cent. BEL, Kotak Bank, and Indigo were up 1.71 per cent, 1.33 per cent, and 1.11 per cent, respectively.

Trent and Mahindra & Mahindra increased 1.04 per cent each. L&T rose 0.98 per cent, Sun Pharma gained 0.74 per cent, and Asian Paints was up 0.68 per cent. Reliance Industries rose 0.66 per cent, Adani Ports increased 0.50 per cent, and HCL Technologies advanced 0.45 per cent. TCS and Hindustan Unilever were up 0.36 per cent and 0.21 per cent.

Some large-cap stocks ended lower. Axis Bank fell 0.12 per cent, Maruti declined 0.14 per cent, and Tech Mahindra lost 0.17 per cent. HDFC Bank dropped 0.33 per cent, Infosys declined 0.61 per cent, and ICICI Bank was down 0.79 per cent. ITC, NTPC, and Power Grid fell 0.98 per cent, 1.05 per cent, and 1.31 per cent, respectively.

Broader markets outperformed benchmarks. Nifty Next 50 rose 0.97 per cent. Nifty Midcap 50 gained 1.33 per cent, Nifty Midcap 100 advanced 1.58 per cent, and Nifty Smallcap 100 rose 2.64 per cent. Nifty Microcap increased 2.59 per cent, Nifty 500 gained 1.06 per cent, and Nifty 200 was up 0.88 per cent.

Experts said clarity on the India-US interim trade deal boosted sentiment. India and the US have finalised the framework of an interim trade deal with executive orders expected from the US this week to implement the agreement. The deal sets an 18 per cent reciprocal tariff for select sectors and protects India’s sensitive agriculture segments.

Market expert and Zee Business Managing Editor Anil Singhvi said, “India has emerged as one of the biggest beneficiaries of the interim trade framework. Compared with China, Bangladesh, Vietnam and Taiwan, India will now face the lowest effective tariffs in the US market.”

Singhvi added that the interim arrangement is expected to continue until a broader India–US Bilateral Trade Agreement is concluded. He said, “After the BTA, the scope of tariff relief could expand further beyond the current 18 per cent level.”

He highlighted that Section 232 products, which carry US duties on national security grounds, will see the removal of reciprocal tariffs on several items, including generic pharmaceuticals, aircraft parts, natural diamonds and select machinery.

Pharmaceutical companies such as Sun Pharma, Dr Reddy’s and Cipla could benefit from the changes. Titan and Kalyan Jewellers are expected to gain in the gems and jewellery sector, while aircraft component makers like Azad Engineering may also see advantages.

Singhvi also noted sectors where the 18 per cent tariff will apply, including textiles, leather, plastics, rubber products, organic chemicals, home décor, machinery and auto components. Companies like Gokaldas Exports, Supreme Industries, Tata Chemicals, Greenply Industries and Larsen & Toubro could see competitive benefits.

On agriculture, Singhvi said India has protected sensitive items like dairy, wheat, rice, poultry, meat, ethanol and tobacco, while exports of tea, coffee, spices and select fruits will attract zero duty in the US market.

He added that domestic manufacturers in some industrial goods and premium motorcycles may face higher competition. Singhvi said, “Zero duty on Harley-Davidson increases competition in the premium motorcycle segment.”

Market breadth was positive with 2,485 advances against 728 declines on the NSE. About 92 stocks remained unchanged. A total of 110 stocks hit the upper circuit while 51 touched the lower circuit. 69 stocks recorded 52-week highs, while 61 stocks recorded 52-week lows. Market capitalisation on NSE stood at Rs 471.43 lakh crore