Markets surge for 2nd day; Sensex jumps 455 points, Nifty tops 25k level

Mumbai: Benchmark indices Sensex and Nifty surged on Monday due to a host of positive triggers like India emerging as the fourth largest economy in the world and US President Donald Trump delayed 50 per cent EU tariffs to July 9.

The 30-share BSE benchmark gauge Sensex jumped 455.37 points or 0.56 per cent to settle at 82,176.45. During the day, it surged 771.16 points or 0.94 per cent to 82,492.24.

The NSE Nifty climbed 148 points or 0.60 per cent to 25,001.15.

The early arrival of monsoon and the Reserve Bank announcing a record Rs 2.69 lakh crore dividend to the government for FY25 also added to the optimistic trend in the markets, experts said.

From the Sensex firms, Mahindra & Mahindra, HCL Tech, Tata Motors, Nestle, ITC, Hindustan Unilever, Larsen & Toubro, and Tech Mahindra were the biggest gainers.

In contrast, Eternal, UltraTech Cement, Power Grid, Tata Steel and Kotak Mahindra Bank were among the laggards. Eternal dropped 4.51 per cent.

India has become the fourth largest economy in the world, overtaking Japan, NITI Aayog CEO BVR Subrahmanyam has said.

The Reserve Bank on Friday announced a record Rs 2.69 lakh crore dividend to the government for FY25, 27.4 per cent higher than 2023-24, helping the exchequer to tide over challenges posed by US tariffs and increased spending on defence due to the conflict with Pakistan.

"The US decision to consider extending the deadline for imposing aggressive tariffs on EU, coupled with a decline in the dollar index, contributed to a rebound in the domestic equity markets. These developments suggest that trade negotiations are progressing constructively, which could help moderate market volatility.

"Additionally, the early onset of the southwest monsoon and a decline in domestic bond yields have encouraged investors to maintain their focus on riskier assets," Vinod Nair, Head of Research, Geojit Investments Limited, said.

In Asian markets, South Korea's Kospi and Japan's Nikkei 225 index settled in the positive territory, while Shanghai's SSE Composite index and Hong Kong's Hang Seng ended lower.

Markets in Europe were trading higher in mid-session deals.

US markets ended lower on Friday.

Foreign Institutional Investors (FIIs) bought equities worth Rs 1,794.59 crore on Friday, according to exchange data.

The southwest monsoon hit Kerala on Saturday, marking its earliest arrival over the Indian mainland since 2009 when it reached the southern state on May 23, the India Meteorological Department (IMD) said.

Global oil benchmark Brent crude climbed 0.17 per cent to $64.89 a barrel.

On Friday, the 30-share BSE benchmark surged 769.09 points or 0.95 per cent to settle at 81,721.08. The Nifty rallied 243.45 points or 0.99 per cent to 24,853.15.