Domestic institutions bought equities worth `1,746 core, while FIIs bought equities worth `135.98 crore

FPJ News Service mumbai

Market sentiment remained positive on Monday amid favourable macroeconomic factors such as India emerging as the 4th largest economy in the world, US President Trump delayed 50% EU tariffs to July 9, early arrival of monsoon, and the RBI announcing Rs 2.69 lakh crore dividend to the Centre.

Reflecting the uptrend, the 30-share BSE benchmark Sensex rose 455.37 points to settle at 82,176.45. During the day, it surged 771.16 points to 82,492.24. The NSE Nifty climbed 148 points to 25,001.15.

Domestic institutions bought equities worth Rs 1,746 core, while FIIs bought equities worth Rs 135.98 crore. “The US decision to consider extending the deadline for imposing aggressive tariffs on the 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.

Early onset of the southwest monsoon, and a decline in domestic bond yields have encouraged investors to maintain their focus on riskier assets. The broader market has outperformed, driven by expectations of high rural consumption, and a stronger Q4 GDP, following better corporate earnings,” said Vinod Nair, head of research at Geojit Investments.

“India becoming the fourth largest economy would be a near-term morale boost for the market. RBI’s bumper dividend payment, exceeding the budget estimates will help contain the fiscal deficit target for FY26 at 4.4%. This, in turn, can sustain the low inflation and declining interest rate trend, which will continue to support the equity market.

“FII inflows which have been strong in early May have turned erratic recently indicating potential selling at higher levels. It appears that the good news regarding tariffs is behind us. Trump’s comments regarding tariffs on the EU and the 25 % tariff threat to Apple if they don’t manufacture iPhones in the US suggest that bad news impacting the market can suddenly come from the US President any time. A significant feature of the Q4 results season is the outperformance of the midcaps which has helped reduce the high valuations of the segment,” said Dr VK Vijayakumar, chief investment strategist, at Geojit Investments.

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. 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 IMD said.