By Bharath Rajeswaran
(Reuters) -Indian equity benchmarks snapped a three-session losing streak on Monday, as global sentiment improved on the possibility of an end to the historic U.S. government shutdown, while improving domestic earnings momentum also supported gains.
The Nifty 50 rose 0.32% to 25,574.35, while the BSE Sensex added 0.38% to 83,535.35, both snapping a three-session losing run.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.3%, after the U.S. Senate advanced the government funding bill to end the shutdown, moving it closer towards passage. [MKTS/GLOB]
Thirteen of the 16 major sectors advanced. Heavyweight IT, which earn a significant share of their revenue from the U.S., rose 1.6%, leading sectoral gains.
“Optimism over a likely end to the U.S. government shutdown, a development that had withheld key economic data crucial for financial markets, supported sentiment,” said R Ponmudi, chief executive at Enrich Money.
Meanwhile, Goldman Sachs upgraded Indian markets back to “overweight” a year after downgrading to “neutral”, and estimated a 14% uptick for the Nifty by the end of 2026, citing strengthening earnings momentum and policy tailwinds supporting growth.
The broader small-caps and mid-caps rose about 0.4% and 0.5%, respectively.
Beauty retailer Nykaa gained 5.8% after its quarterly profit more than trebled on firm demand.
Drugmaker Lupin rose about 1% after posting a 73.3% jump in quarterly profit on Friday, driven by strong demand for its respiratory drugs.
State-owned warplane maker Hindustan Aeronautics gained 3.5% after signing an agreement to buy 113 engines from General Electric to power an advanced variant of its home-produced Tejas fighter jets.
On the flipside, clothing retailer Trent declined 7.4% after posting its slowest quarterly revenue growth since 2021.
Eyewear retailer Lenskart Solutions listed at a discount of 1.74% to its issue price and ended its debut session 0.3% higher, amid concerns over stretched valuations.
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy, Mrigank Dhaniwala and Eileen Soreng)
