Indian shares opened the week strong on Monday, as markets welcomed two big pieces of news: a delay in U.S. tariffs on the European Union and a record ₹2.69 lakh crore dividend from the Reserve Bank of India (RBI) to the government.
By 10:31 a.m. IST, the Nifty 50 was up 0.41% at 24,955.2, and the BSE Sensex climbed 0.46% to 82,092.44. Both indexes rose nearly 0.8% at the open, driven by strong sentiment across sectors.
Why This Matters to You
If you’re invested in mutual funds or pension plans, this rally means good news. With the RBI’s massive payout, the government gets a financial cushion. That could mean more spending on infrastructure, fewer tax hikes, and possibly stable interest rates.
And if you’ve been watching global markets nervously—Trump’s last-minute softening on the 50% EU tariff threat gives traders some breathing room. Negotiators now have till July 9 to strike a trade deal, delaying what could’ve sparked a trade war.
Also Read Sensex Soars Over 600 Points, Nifty Breaches 25,000 as Banks and Midcaps Lead the Charge
Markets Cheer on the Double Dose of Relief
All 13 major sector indices were trading higher. The Metals Index jumped 1% as commodities gained strength from a weaker U.S. dollar and Trump’s U-turn on tariffs. Autos, energy, and real estate sectors each added around 1%.
Financial stocks, which carry the most weight in the indices, rose 0.5%. Heavyweights like HDFC Bank, ICICI Bank, and Reliance Industries each climbed 0.8%, boosting overall sentiment.
Midcap and smallcap indices weren’t left behind either—they edged up by 0.5% and 0.3%, respectively.
Also Read Gold Prices Ease as Trump Delays EU Tariffs, But Uncertainty Lingers
RBI’s ₹2.69 Lakh Crore Dividend: The Real Game-Changer
On Friday, the RBI announced a record surplus transfer of ₹2.69 trillion (about $31.6 billion) to the government for the fiscal year ending March 2025. This surprise windfall could narrow the fiscal deficit, help sustain low inflation, and keep interest rates soft.
“This dividend helps strengthen macro stability at a time when the global economy is still on edge,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial.
Think of it as the RBI throwing a lifeline to the government—without printing extra money or raising taxes.
Stock Standouts: Divi’s and JK Cement Shine
Among individual gainers, Divi’s Laboratories soared 3.5% after signing a global pharma supply deal. Meanwhile, JK Cement surged 6% on the back of strong volume growth in the March quarter—proving that old-school cement still has solid staying power.
Across Asia, the MSCI Asia ex-Japan index rose 0.2%, and oil prices ticked higher as global demand concerns eased.
When global chaos pauses—even briefly—and the central bank cuts a fat check, Indian shares don’t just breathe—they run. And on Monday, they did just that.
Also Read Why the EU Tariff Threat Just Took a Wild U-Turn — And What Happens Next
