Indian shares rise on US trade optimism, strong earnings from top lender SBI

Indian shares rose on Monday after an interim framework for a trade deal with the United States and strong earnings from the country’s largest lender State Bank of India lifted sentiment, with positive global cues adding support.

The Nifty 50 rose 0.68% to 25,867.3 and the BSE Sensex added 0.58% to 84,065.75.

Fifteen of the 16 major sectors advanced, while the small-cap and mid-cap indexes gained 2.6% and 1.6%, respectively.

State Bank of India, the country’s largest public lender, jumped 7.5% to a record high and topped gains on the Nifty 50 after reporting better-than-expected quarterly profit and raising its full-year loan growth outlook.

The move lifted PSU bank stocks 3.3% and financials 1.3%.

Analysts said broadly positive earnings, particularly among mid- and small-cap companies, were also supporting market sentiment.

“Most sectors saw acceleration in (sales, EBITDA and profit), with small caps being the clear outperformer. Earnings downgrades are moderating and upgrades should begin soon,” IIFL Capital said.

Export-linked sectors like textiles, seafood, jewellery and aerospace suppliers jumped after the U.S. and India moved closer to a trade pact on Friday, releasing an interim framework that would lower tariffs, reshape energy ties and deepen economic cooperation as both countries seek to realign global supply chains.

“The interim trade framework is a sentimental positive for markets. It cements the faith around the deal considering that there has been a lot of mixed news flows around tariffs over the last year,” said Dharmesh Kant, head of equity research at Cholamandalam Securities.

Elsewhere, Asian stocks jumped 2.1% on Monday as a resounding win for Japanese Prime Minister Sanae Takaichi whetted appetites for more reflationary policies, while there was widespread investor relief at Wall Street’s last gasp rebound.