India’s equity benchmarks overcame a shaky open to settle higher on Tuesday as optimism around a potential trade deal with Washington and steps toward the U.S. government reopening boosted investor sentiment.
The Nifty 50 rose 0.47% to 25,694.95, while the BSE Sensex added 0.4% to 83,871.32.
Eleven of the 16 major sectors logged gains, while broader small-caps fell 0.2% and mid-caps rose 0.5%.
The U.S. Senate has approved a compromise that would end the longest government shutdown in the country’s history, breaking a weeks-long stalemate that has disrupted food benefits for millions and left hundreds of thousands of federal workers unpaid.
Information technology stocks climbed 1.2% as the prospect of a U.S. government reopening raised hopes of the fog over key data releases and the Fed rate outlook clearing, which boosted optimism for India’s export-driven sectors.
Investors were also enthused by U.S. President Donald Trump’s commentsthat a trade deal with India is close. Shares of shrimp exporters and several textile companies that rely on the U.S. market surged on the day.
ICICI Mutual Fund said it was less cautious on equities amid encouraging earnings and recent consumption tax cuts.
The asset manager still warned that elevated valuations can limit near-term upside and prolonged tariff uncertainties could test investor sentiment.
Elsewhere, non-bank lender Bajaj Finance declined 7.4% after trimming growth forecast for its assets under management on rising bad loans and strong competition.
Biscuit maker Britannia Industries fell 3% following the surprise resignation of its long-time managing director Varun Berry.
Telecom operator Vodafone Idea jumped 7.8% after it posted a smaller-than-expected second-quarter loss, aided by more users upgrading to its higher-margin 4G and 5G plans.
E-scooter maker Ather Energy gained 5.5% on reporting narrower quarterly loss, as more stores helped drive sales of models such as the Rizta.
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