The benchmark indices opened in positive territory on Monday morning, tracking strong global cues amid renewed optimism over a potential US-China trade agreement and expectations of a US Federal Reserve rate cut later this week. The opened at 84,297.39 against the previous close of 84,211.88 and was trading at 84,676.25, up 464.37 points or 0.55 per cent at 9.51 am. The opened at 25,843.20 compared to its previous close of 25,795.15 and was at 25,934.05, gaining 138.90 points or 0.54 per cent.
“Global equities kicked off the week on a strong note as optimism surged over reports of a potential Trump–Xi summit that could finalise a landmark US–China trade agreement covering tariffs, technology exports, and rare-earth supplies,” said Ponmudi R, CEO of Enrich Money. The positive sentiment was further reinforced by expectations that the US Federal Reserve will cut rates by 25 basis points this Wednesday after soft inflation data, he added.
Financial services stocks led the gains, with emerging the top gainer, surging 3.07 per cent to ₹1,896.20. climbed 1.86 per cent to ₹1,478.60, while Bharti Airtel gained 1.61 per cent to ₹2,062.00. Tata Steel also rose 1.61 per cent to ₹177.25, and Tata Motors (passenger vehicles) advanced 1.31 per cent to ₹408.60.
On the losing side, declined 1.46 per cent to ₹2,155.00, Bharat Electronics Ltd fell 0.88 per cent to ₹418.35, and ONGC dropped 0.74 per cent to ₹253.07. Bajaj Finance shed 0.73 per cent to ₹1,081.80, while Adani Ports dipped 0.55 per cent to ₹1,421.20.
“Comments from the US Treasury Secretary Scot Bessent that there is a ‘substantial framework for trade negotiations with China’ indicate that a US-China trade deal is on the cards,” said Dr V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd. He noted that conditions are favourable for the Nifty and Sensex to climb to record highs, supported by brisk festival season sales and a pick-up in private sector capital spending.
On the institutional front, Foreign Institutional Investors turned net buyers, purchasing equities worth ₹621.51 crore on October 24, while Domestic Institutional Investors bought equities worth ₹173.13 crore on the same day.
Prashanth Tapse, Senior VP (Research) at Mehta Equities, highlighted that markets are pricing in a 97 per cent chance of a Fed rate cut on October 29. “Adding to the optimism are prospects of a US-China trade deal and possible US tariff cuts on Indian imports to 15-16 per cent,” he said.
In commodities, crude oil futures traded higher following reports of a possible trade deal. January Brent oil futures were at $65.30, up 0.15 per cent, while December crude oil futures on WTI were at $61.62, up 0.20 per cent. On MCX, November crude oil futures were trading at ₹5,437, up 0.18 per cent.
Gold prices continued to decline as safe-haven demand weakened. “Gold prices continue to decline as safe-haven demand weakens amid optimism over a potential US-China trade deal and a stronger US dollar,” said Darshan Desai, CEO of Aspect Bullion & Refinery. Rahul Kalantri, VP Commodities at Mehta Equities, noted that gold has support at $4,050-4,005, with resistance at $4,145-4,165.
Technically, analysts remain constructive on market prospects. “A decisive break above 26,000 on the Nifty or 58,000 on the Bank Nifty could reaffirm the bullish momentum and pave the way for new lifetime highs,” said Ponmudi R.