The S&P BSE Sensex climbed 0.38% to close at 83,535.35, up 319.07 points, while the NSE Nifty 50 gained 0.32%, or 82.05 points, to finish at 25,574.35.
On the 30-stock Sensex, Infosys, HCL Technologies, Bajaj Finance, Asian Paints and Tata Motors Passenger Vehicles led the gainers, advancing between 1% and 2.5%.
The heavyweight IT index climbed 1.6%, topping sectoral charts, as software exporters, who earn a large share of their revenue from the U.S., benefited from improving global sentiment.
Broader markets also firmed up, with the midcap and smallcap indices rising 0.5% and 0.4%, respectively.
Among individual movers, beauty retailer Nykaa jumped 5.8% after its quarterly profit more than tripled on strong demand.Bucking the trend, apparel retailer Trent slumped 7.4% after reporting its slowest quarterly revenue growth since 2021.Eyewear retailer Lenskart Solutions made a choppy debut, listing 3% below its issue price before recovering to close 0.3% higher from its IPO price, as investors weighed its steep valuation.
Expert views
The potential resolution of the U.S. government shutdown, coupled with renewed FIIs buying driven by a favourable Q2 earnings season, supported a positive sentiment in the market, said Vinod Nair, Head of Research at Geojit Investments, adding that the rise in the U.S. 10-year Treasury yield reflects improving risk sentiment toward equities with the reopening of the federal government.
“Domestically, strengthening macroeconomic indicators are expected to underpin upward revisions in earnings estimates for H2FY26. This reinforces the current valuations and is likely to attract incremental liquidity. Sectorally, the IT index outperformed, buoyed by expectations of demand stabilisation,” said Nair.
Global Markets
Global stocks advanced Monday as hopes grew that Washington was close to ending the historic U.S. government shutdown, while Treasury yields edged higher and the dollar steadied after last week’s losses.
The U.S. Senate on Sunday cleared a key procedural hurdle on a measure to reopen the government after a 40-day shutdown that has disrupted federal services, delayed food aid, and snarled air travel. The bill, which would fund the government through Jan. 30 and include three full-year spending packages, now heads toward final passage.
The breakthrough lifted sentiment across markets: Nasdaq futures climbed 1.27%, S&P 500 futures gained 0.74%, while EUROSTOXX 50 and DAX futures rose about 1.5% each. FTSE futures added 0.85%.
In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.36%, Japan’s Nikkei advanced 1.33%, and Hong Kong’s Hang Seng gained 1.5%. China’s CSI300 reversed early losses to trade 0.3% higher after data showed producer price deflation eased and consumer prices returned to growth in October.
U.S. Treasury yields inched higher, with the 10-year up 4 bps to 4.1355% and the two-year yield rising 3.8 bps to 3.5949%.