Monsoon, easing trade tensions boost mkts

Nifty reclaims 25K, Sensex ends above 82K

- SAMIE MODAK

Domestic markets rallied for a second day on Monday as monsoon rain hit southernmost state of Kerala eight days earlier than usual, providing the promise of a bumper harvest and relief from a gruelling heatwave. Investor sentiment was also boosted by easing global trade tensions and the Reserve Bank of India's record dividend transfer, which reaffirmed prospects of sustained fiscal consolidation.

The Nifty 50 index closed 0.6 per cent higher at 25,001, while the 30-share BSE Sensex rose 0.56 per cent to close at 82,176.45. During the previous session, both indices had risen about a per cent each.

US President Donald Trump backed off his threat to impose 50 per cent tariffs on European Union (EU) imports, easing trade concerns, potentially hinting "that the US may reduce its aggression in the trade war, which is a positive," according to G Chokkalingam, founder and head of research at Equinomics Research and Advisory. The US and EU now have time until July 9 to work on a trade deal.

The RBI's board approval to transfer a record ₹2.69 trillion ($31.6 billion) as surplus to the federal government for the financial year ended in March could help the government reduce its fiscal deficit drastically, added Chokkalingam.

All 13 major sectors logged gains.