Indian benchmark equity indices traded firmly higher on Monday, with the BSE Sensex gaining nearly 600 points to trade around 78,300, while the NSE Nifty 50 advanced about 150 points to cross the 24,400 mark. The rally was led by strong buying in metal and automobile stocks, reflecting positive investor sentiment at the start of the trading week.

The upbeat market performance came after a strong close in the previous session, supported by gains in heavyweight stocks and improved risk appetite among investors.

Metal counters emerged as the top sectoral performers, aided by expectations of improved demand and firm global commodity trends. Auto stocks also witnessed broad-based buying as investors remained optimistic about the sector's growth outlook and improving domestic demand.

Asian Markets Trade Mixed

While Indian equities remained in positive territory, major Asian markets presented a mixed picture.

South Korea's Kospi declined 2.31 per cent, while Japan's Nikkei fell 1.18 per cent amid profit booking and cautious investor sentiment. In contrast, Hong Kong's Hang Seng Index rose 0.78 per cent, supported by gains in technology and financial stocks.

The mixed performance across Asia reflected investor caution over global economic developments, despite selective buying in regional markets.

US Markets End Previous Session Mixed

Wall Street also delivered a mixed performance in the previous trading session.

The Dow Jones Industrial Average climbed 595 points, or 1.14 per cent, while the technology-heavy Nasdaq Composite slipped 0.80 per cent. The S&P 500 ended the session largely unchanged, indicating cautious investor positioning ahead of key economic data and corporate earnings.

Foreign Investors Turn Net Buyers

Foreign Institutional Investors (FIIs) continued to provide support to domestic equities, purchasing shares worth ₹1,355 crore on Friday. However, Domestic Institutional Investors (DIIs) remained net sellers, offloading equities worth ₹1,954 crore during the session.

Despite Friday's buying, FIIs remain net sellers over the past week and month, indicating that overseas investor participation continues to be influenced by global market conditions and macroeconomic uncertainties.

Previous Session Ends on a Positive Note

The current rally follows a strong finish on Friday, July 3, when the benchmark indices extended gains.

The Sensex closed 261 points higher at 77,764, while the Nifty added 95 points to settle at 24,270, setting a positive tone for Monday's trading.

Market participants will now monitor global cues, corporate earnings, foreign investment flows and macroeconomic developments for further direction as the earnings season approaches.