Sensex, Nifty Climb On Fed Rate Cut Hopes, Easing US-China Tensions

(RTTNews) - Indian shares rose notably on Monday as softer-than-expected U.S. inflation report raised hopes of additional Federal Reserve rate cuts in 2025 and reports suggested that the United States and China were closing in on a trade deal.

Investors are anticipating a potential accord after top negotiators from both sides reported progress on contentious issues ahead of a meeting between Presidents Donald Trump and Xi Jinping later this week.

Closer home, India's economic growth outlook for the current fiscal year remains strong, supported by robust domestic demand, easing inflation and recent consumption tax cuts, the Finance Ministry said in its September economic report.

The benchmark BSE Sensex ended the session up 566.96 points, or 0.67 percent, at 84,778.84, with most sectoral indexes advancing.

The broader NSE Nifty index surged 170.90 points, or 0.66 percent, to 25,966.05 while the BSE mid-cap and small-cap indexes rose 0.7 percent and half a percent, respectively.

The market breadth was strong on the BSE, with 2,180 shares rising while 2,110 shares declined and 212 shares closed unchanged.

Among the top gainers, SBI, Eternal, Reliance Industries and Bharti Airtel all rallied over 2 percent.

SBI Life Insurance jumped 3.4 percent after net premium income rose to Rs. 24,848 crore in Q2FY26 from Rs. 20,266 crore in the corresponding period last year.

Coforge surged 4 percent after Q2 net profit jumped 86 percent year-on-year.

Kotak Mahindra Bank fell 1.7 percent on reporting a 2.3 percent decline in its Q2FY26 standalone net profit.

Globally, Asian markets logged strong gains while European stocks were little changed in early trade.

Gold prices fell nearly 2 percent in European trade amid dollar strength and signs of easing U.S.-China trade tensions.

Oil ticked lower in choppy trade after rallying almost 8 percent last week on supply jitters.