In the barometer index, the S&P BSE Sensex advanced 388.17 points or 0.46% to 84,950.95. The Nifty 50 index rallied 103.40 points or 0.40% to 26,013.45. In six consecutive trading sessions, the Sensex rose 2.08% while the Nifty added 2.04%. The Nifty Bank index hit a record high of 59,000.50 in mid-afternoon trade.

In the broader market, the S&P BSE Mid-Cap index surged 0.66% and the S&P BSE Small-Cap index jumped 0.59%. The market breadth was negative.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.29% to 11.78.

Among the sectoral indices, the Nifty PSU bank index (up 1.09%), the Nifty Auto index (up 0.85%) and the Nifty Consumer Durables index (up 0.83%) outperformed the Nifty 50 index.

Meanwhile, the Nifty Metal index (up 0.01%), the Nifty Pharma index (up 0.20%) and the Nifty FMCG index (up 0.21%) underperformed the Nifty 50 index.

Economy:

India’s merchandise trade deficit surged to a record $41.68 billion in October, driven mainly by a sharp rise in gold and silver imports. This compares with a 13-month high of $32.15 billion in September. Exports fell 11.8% to $34.38 billion, while imports rose 16.63% to $76.06 billion. Gold imports alone jumped to $14.72 billion, up from $4.92 billion a year earlier, according to the Commerce Secretary.

India’s foreign exchange reserves fell by $2.7 billion to $687.73 billion in the week ended November 7, 2025, the Reserve Bank of India (RBI) said on Friday.

For the week ended November 7, foreign currency assets, a major component of the reserves, decreased by $2.45 billion to $562.13 billion, the RBI data showed.

Value of gold reserves declined by $1.95 billion to $101.53 billion during the week, the RBI said.

Notably, the central bank's gold reserves had hit a record $100 billion in October even as the yellow metal rallied in global markets, before recording a crash.

The Special Drawing Rights (SDRs) were down by $51 million to $18.59 billion, the apex bank said.

RBI trade relief measures for exporters

The Reserve Bank of India, on Friday announced the following measures with a view to mitigate the impact of trade disruptions on exports arising on account of global headwinds. RBI has permitted exporters to bring proceeds of their shipments in 15 months as against the prevailing timeframe of 9 months in view of stress being faced by them. Exporters are facing issues due to a steep tariff imposed by the US on Indian shipments since August. The US imposed a steep 50% tariff on goods from India, which took effect on August 27. Currently, the value of goods or software exports made by exporters is required to be realised fully and repatriated to the country within a period of nine months from the date of export.

Further, RBI has increased in the time period for shipment of goods from one year to three years from the date of receipt of advance payment or as per agreement, whichever is later. Additionally, the RBI has introduced new directives aimed at debt relief, allowing deferment of payment of all of term loans and recovery of interest on working capital loans, as applicable, falling due between 1 September 2025, and 31 December 2025. The measures also encompass a reassessment of working capital requirements, providing flexibility in credit availability. Exporters now have up to 450 days to repay export credits disbursed by 31 March 2026, with relaxed norms for those facing dispatch challenges on packing credits obtained by August 31, 2025. These comprehensive steps signal a robust response to ongoing trade disruptions.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.17% to 6.538 from the previous close of 6.527.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 86.6200 compared with its close of 88.6600 during the previous trading session.

MCX Gold futures for 5 December 2025 settlement fell 0.22% to Rs 123,284.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.07% to 99.37.

The United States 10-year bond yield fell 0.55% to 4.126.

In the commodities market, Brent crude for December 2025 settlement rose 3 cents or 0.05% to $66.42 a barrel.

Global Markets:

European markets declined on Monday as investors turned cautious ahead of earnings from AI favourite Nvidia.

Most Asian markets ended lower as investors weighed escalating tensions between Japan and China, following Beijing’s advisory cautioning its citizens about travelling to or studying in Japan.

The rising feud between the countries over Taiwan resulted in significant selling in Japan’s tourism and retail stocks today. China has consistently ranked among the top sources of tourists visiting Japan.

The escalation came after comments this month by Prime Minister Sanae Takaichi of Japan about Taiwan, a self-governed democracy that China considers part of its territory. Ms. Takaichi told the Japanese Parliament that a hypothetical Chinese attack on Taiwan could trigger a military response from Tokyo.

On Friday, the Chinese Embassy in Tokyo warned its citizens against traveling to Japan because of what it described as serious safety risks. China did not provide evidence, but the warning could affect an important part of Japan’s tourism economy.

Japan's Prime Minister Sanae Takaichi, who has been a vocal critic of China and its military activities in the region, suggested this month Tokyo could take military action if Beijing attacked Taiwan.

Thailand Gross domestic product in the three months through September rose 1.2% from a year earlier, the National Economic and Social Development Council said on Monday. The economy shrank 0.6% from the second quarter. Its first drop in quarterly output since the end of 2022 and is the deepest decrease since mid-2021.

Singapore recorded a trade surplus of $7.24 billion in October of 2025 compared with $5.689 billion in September 2025.

Traders also monitored key regional data, including Thailand’s Q3 GDP report and Singapore’s latest trade balance numbers.

In the U.S. on Friday, the Nasdaq Composite staged a modest recovery as buyers returned to major tech names after the sector had driven Wall Street to its sharpest decline in over a month the previous session.

The tech-heavy Nasdaq gained 0.13% to finish at 22,900.59, snapping a three-day losing streak. The S&P 500 finished near the flatline, down just 0.05% at 6,734.11, while the Dow Jones Industrial Average lost 309.74 points, or 0.65%, to settle at 47,147.48.

All three indices had earlier rebounded from deeper intraday losses, with the Nasdaq and S&P 500 down as much as 1.9% and 1.4%, and the Dow off nearly 600 points (1.3%).