India’s equity market surged ahead on Monday as sentiment improved following the announcement that U.S. President Donald Trump and Russian President Vladimir Putin will meet in Alaska to discuss the Russia–Ukraine conflict.
Besides easing geopolitical tensions, a positive global market also supported the rally. The U.S. markets surged 1% in the previous session while Asian markets and European markets were also in the green on optimism over potential interest rate cuts by the US Fed.
The benchmark index BSE Sensex closed 746 points (0.93%) higher at 80,604, while the Nifty rose 221 points (0.91%) to settle at 24,585. In the broader market, the BSE Midcap index added 0.8%, and the Smallcap index rose 0.35%.
Among sectoral indices, the Nifty Realty and PSU Bank indices advanced 2% each, and other sectors like pharma, auto, mid-cap, defence, and FMCG gained up to 1%. The PSU Bank index surged after SBI delivered better-than-expected Q1 results.
“Global market sentiments improved, following reports of US-Russia peace talks likely to be held this week, while Indian investors cheered FII inflows of Rs 1,933cr on Friday,” said Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services. Foreign Institutional Investors (FIIs), however, turned net sellers on Monday as they offloaded shares worth Rs 1,159 crore. The selling was countered by Domestic Institutional Investors (DIIs) net purchase of Rs 5,951 crore.
He added that private lender ICICI Bank’s move to increase the minimum balance requirement for new savings accounts boosted traction in public sector banks.
“AMC stocks are likely to be in focus as the net inflow into equity mutual funds surged 81% to Rs 42,672 crore in July as per latest AMFI data. Stock/sector specific action would continue as the earnings season enters its final leg. Overall, we expect the market to stay firm while tracking developments on US tariffs and outcome of the US-Russia talks scheduled for this week,” stated Khemka.
Vinod Nair, Head of Research, Geojit Investments, said that investors are positively assessing the upcoming US-Russia summit this week, which may possibly give way to a de-escalation in geopolitical tensions. “While a near-term caution may still prevail, the more definite assessment of the US trade and growth impact is yet to be assessed fully,” added Nair.
In the Nifty50 pack, Adani Enterprises was the top gainer as the stock snapped its three-day losing streak and rose 4.23% on Monday to close at Rs 2,270. Tata Motors’ shares rose 3.2% to close at Rs 654 following its Q1FY26 results. Eternal, Grasim Industries and Apollo Hospitals surged between 2% and 3%.
Amruta Shinde, Technical & Derivative Analyst at Choice Equity, said that the India VIX, a key gauge of market volatility, rose 1.54% to 12.21, reflecting reduced uncertainty and improved investor sentiment.
“In the derivatives segment, open interest data showed the highest call writing at the 24,600 strike, while the highest put OI was concentrated at 24,500 and 24,400. This positioning suggests that resistance persists near 24,600; however, traders are anticipating potential upside, with a sustained close above this level necessary to maintain bullish momentum,” added Shinde.