Indian stock markets began the week on a strong note, with Sensex rising 537 points (0.66%) to 82,270 and Nifty climbing 154 points (0.62%) to 24,999 in early trade, buoyed by positive global cues, sectoral momentum, and macroeconomic tailwinds.
Among the early top gainers on the Sensex were Powergrid, NTPC, M&M, UltraTech Cement, ICICI Bank, and Tata Motors, while banking stocks also gained, with Nifty Bank Index climbing over 0.7% to 55,790.
📈 Sectoral Snapshot
- Nifty Metals led sectoral performance.
- Pharma, Bank, and Auto indices gained around 0.7% each.
- IT and FMCG indices were up by 0.6%.
The upbeat tone comes after the Nifty closed nearly 1% higher last Friday, easing investor concerns over short-term volatility.
🌐 Global Cues: Trump Postpones EU Tariff Threat
A key driver behind today’s market optimism is U.S. President Donald Trump’s decision to postpone the 50% tariffs on the European Union to July 9, offering temporary relief to global markets.
Ajay Bagga, Banking and Market Expert, commented:
“As expected, one more relief for the markets. The delay in EU tariffs is seen as a positive sign. Markets had priced in a worst-case scenario, and a roll-back or delay gives them room to rally.”
Bagga also emphasized that tariff-related volatility will persist over the next few weeks, but India, Japan, South Korea, Vietnam, and the EU are likely to negotiate deals, eventually settling on a 10% universal tariff structure.
🇮🇳 Domestic Boost: India Becomes 4th Largest Economy
Adding to the positive domestic sentiment, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted:
“India’s rise to the fourth-largest economy in the world is a near-term morale booster for the equity market.”
He also pointed out the impact of the RBI’s record Rs 2.69 lakh crore dividend to the government:
“This will help contain the fiscal deficit to the target of 4.4% for FY26 and sustain the low inflation and declining interest rate trend, supporting continued equity market growth.”
📊 Earnings Season Watch
Over 200 companies are slated to announce Q4 results this week, drawing investor focus. Analysts expect midcaps and sector-specific performers to drive market direction based on earnings surprises.