Equity benchmarks extended their morning rally into the afternoon session on Monday, with the rising 481.63 points (0.57 per cent) to 84,693.51 and the climbing 145.25 points (0.56 per cent) to 25,940.40 as of 1:45 pm, building on the positive momentum from the opening bell.
The sustained gains came on the back of continued optimism over a potential US-China trade deal and expectations of a rate cut. Both foreign institutional investors and domestic institutional investors remained net buyers, driving risk appetite across sectors.
SBI Life led the Nifty gainers with a surge of 3.40 per cent to ₹1,902.30, followed by Grasim Industries which climbed 2.45 per cent to ₹2,911.00. Bharti Airtel advanced 2.39 per cent to ₹2,077.70, while Eternal added 2.17 per cent to ₹333.70. Reliance Industries gained 1.83 per cent to ₹1,478.10, contributing significantly to the index movement.
On the downside, Kotak Mahindra Bank declined 1.63 per cent to ₹2,151.40, emerging as the top loser on the benchmark. Bharat Electronics fell 1.50 per cent to ₹415.70, while Bajaj Finance dropped 0.99 per cent to ₹1,079.00. Adani Ports shed 0.80 per cent to ₹1,417.50, and ONGC slipped 0.64 per cent to ₹253.32.
Sectoral indices mirrored the broader market strength, with Nifty Bank climbing 302.75 points (0.52 per cent) to 57,991.70 and Nifty Financial Services advancing 88.75 points (0.32 per cent) to 27,479.70. The midcap segment outperformed, with the Nifty Midcap 100 rising 466.65 points (0.79 per cent) to 59,697.20.
Market breadth remained balanced with 2,053 stocks advancing against 2,117 declining on the BSE, where 4,390 stocks were traded. A total of 171 stocks touched their 52-week highs, while 77 hit their 52-week lows. Some 237 stocks remained locked in upper circuit, compared to 199 in lower circuit.
Analysts noted that hopes of a Trump-Xi summit to finalise a comprehensive trade pact and a likely 25-basis-point Fed rate cut continued to support investor sentiment. Favourable domestic factors including festive demand and rising capital expenditure activity are expected to drive indices toward record highs.