India Stocks Reach Highest Levels Since Mid-May Amid Trade Optimism

Indian equity markets showed varied movements amid easing global trade tensions and domestic economic indicators. On Monday, the BSE Sensex reached its highest level since mid-May, closing about 0.6% higher, supported by gains in autos, banks, metals, and IT sectors following U.S. President Donald Trump's extension of the trade talks deadline with the European Union, which calmed global market concerns. The Nifty 50 reclaimed the 25,000 mark for the first time in over two weeks, with broad-based gains including mid- and small-cap stocks reflecting improving liquidity and favorable earnings expectations. However, on Tuesday, Indian benchmarks opened lower, dragged by financials and IT sectors, retreating from previous gains despite ongoing optimism from delayed U.S. tariffs on EU goods and supportive monsoon forecasts. Industrial output data showed a 2.7% year-on-year rise in April, surpassing expectations but slightly easing from March, while investors remained attentive to upcoming Q1 GDP data expected to show robust growth. Market sentiment continues to be influenced by both global trade developments and domestic economic performance, with active buying from both foreign and domestic institutional investors.