Indian Equities Surge 1% Amid SBI Profit Boost and Trump-Putin Meeting Optimism

Indian equity indices rose 1% on Monday, recouping last week's losses, following strong Q1 results from State Bank of India and optimism over the upcoming Trump-Putin meeting. The NSE Nifty gained 221.75 points to close at 24,585, while the BSE Sensex rose 746.29 points to end at 80,604. Despite the rally, technical indicators suggest caution, and the market may not be out of the woods yet.

Indian equity indices rose 1% on Monday, recouping last week's losses, following strong Q1 results from State Bank of India and optimism over the upcoming Trump-Putin meeting. The NSE Nifty gained 221.75 points to close at 24,585, while the BSE Sensex rose 746.29 points to end at 80,604 [1].

The rally was driven by several factors. State Bank of India (SBI) reported a 12.5% year-on-year rise in net profit for Q1FY26, driven by strong treasury gains. This positive result boosted investor confidence in the banking sector [1]. Additionally, the announcement of a potential meeting between U.S. President Donald Trump and Russian President Vladimir Putin to discuss the Russia-Ukraine conflict lifted geopolitical tensions and improved global market sentiment [1].

Despite the rally, technical indicators suggest caution. The India VIX, a key gauge of market volatility, rose 1.54% to 12.21, reflecting reduced uncertainty and improved investor sentiment. However, the market may not be out of the woods yet, as traders are anticipating potential upside but are also positioning for resistance near 24,600 [1].

Sectoral indices also performed well, with the Nifty Realty and PSU Bank indices advancing 2% each. Other sectors like pharma, auto, mid-cap, defense, and FMCG gained up to 1% [1]. Private lender ICICI Bank’s move to increase the minimum balance requirement for new savings accounts boosted traction in public sector banks [1].

Foreign Institutional Investors (FIIs) turned net sellers on Monday, offloading shares worth Rs 1,159 crore, while Domestic Institutional Investors (DIIs) net purchased Rs 5,951 crore. The net inflow into equity mutual funds surged 81% to Rs 42,672 crore in July, with AMC stocks likely to be in focus [1].

Investors are positively assessing the upcoming US-Russia summit, which may possibly give way to a de-escalation in geopolitical tensions. However, a near-term caution may still prevail, and the more definite assessment of the US trade and growth impact is yet to be fully assessed [1].

Adani Enterprises was the top gainer, snapping its three-day losing streak and rising 4.23% to close at Rs 2,270. Tata Motors’ shares rose 3.2% to close at Rs 654 following its Q1FY26 results. Eternal, Grasim Industries, and Apollo Hospitals also surged between 2% and 3% [1].

In conclusion, while the Indian equity market showed resilience on Monday, the market remains cautious and is tracking developments on US tariffs and the outcome of the US-Russia talks scheduled for this week.

References:
[1] https://www.newindianexpress.com/business/2025/Aug/11/upcoming-trump-putin-meet-lifts-market-sentiment-as-sensex-nifty-gain-almost-1
[2] https://www.business-standard.com/companies/quarterly-results/q1-results-today-bata-ipca-labs-muthoot-microfin-among-287-on-aug-11-125081100090_1.html