The Indian stock market began the new trading week on a firm note as both key indices surged over 0.50%, as market sentiment further strengthened after the US and India reached a framework for an interim trade agreement, triggering another wave of buying, especially in export-oriented stocks.
The Nifty 50 closed 176 points, or 0.70%, higher at the 25,870 level, while the S&P BSE Sensex closed 0.60% higher at the 84,072 level. The broader markets also closed with even higher returns, as the Nifty Midcap 100 gained 1.60% and the Nifty Smallcap 100 rallied 2.64%.
India and the US on Friday released a joint statement in which both countries agreed to lower tariffs on each other, with US President Donald Trump signing an executive order to revoke the additional 25% tariff he had imposed on Indian goods over the country’s purchases of Russian oil, bringing the effective tariff down to 18% from an earlier 50%.
According to the joint statement, India has expressed its intention to purchase USD 500 billion worth of US energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years.
In addition, easing geopolitical tensions has removed concerns over supply shortages, resulting in a further cooling in crude oil prices, while a softer US dollar has also paved the way for a strong rally in the market.
Meanwhile, FPIs have also turned bullish on the Indian stock market, pumping ₹8,129 crore in February so far, as per the NSDL.
Shipping Corp, SBI, Kalyan Jewellers lead gains on strong Q3 earnings
Shipping Corporation topped the list of gainers as the stock closed 20% higher at ₹266.2 apiece, reacting to the company’s better-than-expected performance in the December quarter.
Kalyan Jewellers also reacted strongly to its December quarter numbers, with the stock surging 14% to ₹436 apiece. Transformers & Rectifiers jumped 15.2% to ₹285.65 apiece in its single biggest intraday gain, snapping its two-day losing streak.
PSU major SBI shares advanced 7.5% to settle at a record high of ₹1,147 apiece after the lender beat Street estimates in Q3. The rally also boosted the company’s market capitalisation to above ₹10 lakh crore for the first time.
The state-owned lender also regained its position as the second-most valuable bank by market capitalisation, overtaking ICICI Bank after a gap of more than six years. Extending its winning run to a third straight year, Kaynes Technology surged another 6.58% to settle at over a month-high of ₹3,943 apiece.
Defence major BEML shares rallied 9% to ₹1,761 apiece, while PCBL Chemical, Elecon Engineering, Aditya Birla Fashion, BASF India, Carborundum Universal and JM Financial also ended the session higher.
Concord Biotech, Reliance Infra and IDBI Bank lead losses
Even amid broad-based buying, some stocks failed to participate in the rally, with Concord Biotech falling 4.1% to ₹1,272 apiece, while Caplin Point Laboratories, REC, Sarda Energy & Minerals and Max Healthcare Institute fell over 3%.
Extending its losing streak to a third straight session, Reliance Infrastructure shares crashed another 3% to ₹116.7 apiece, while IDBI Bank shares fell a further 2.6% to ₹104 apiece.
Other top laggards from the pack were Five-Star Business Finance, Siemens, Page Industries, Bosch, Hexaware Technologies and Siemens Energy India, all falling over 2%.
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