The stock market ended with decent gains on Monday with gains led by select heavyweights including ICICI Bank, ITC and Reliance Industries, registering rise for the second consecutive session.

It is believed that RBI’s bumper dividend to the government, Donald Trump’s decision to delay tariffs on the European Union and the dollar’s decline are some of the key reasons that drove the Indian stock market.

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Sensex ended the day with a gain of 455 points, or 0.56%, at 82,176.45, while the Nifty 50 settled at 25,001.15, up 148 points, or 0.60%.

BSE Midcap index rose 0.56% and the BSE Smallcap index climbed 0.48%. Cumulative market capitalisation of the firms listed on the BSE rose to nearly Rs 445 lakh crore from Rs 442 lakh crore in the previous session.

The rally was predominantly led by the banking sector, which witnessed significant buying interest as investors reacted positively to encouraging earnings outlooks and improving asset quality trends. The Nifty Bank index outperformed the broader market, contributing heavily to the overall gains.

Nifty Bank rose 0.31%, while the PSU Bank and Private Bank indices climbed 0.17% and 0.14%, respectively. The Nifty Financial Services index rose 0.40%.

In addition to banks, the automobile and FMCG sectors showed steady strength, supported by healthy domestic demand and favorable macroeconomic factors.

Nifty Auto and IT indices rose by over a per cent each, while FMCG and Metal rose by almost a per cent.

On Nifty50, as many as 38 stocks ended with gains including shares of Bajaj Auto (2.39%), JSW Steel (2.13%), and Mahindra & Mahindra (2.07%) ending as the top gainers. While on the losing side were Eternal (4.59%), UltraTech Cement (0.60%) and Kotak Mahindra Bank (0.51%) ending as the top losers.

Around 107 stocks hit their 52-week highs in intraday trade on the BSE including ICICI Bank, HDFC Life Insurance Company, HDFC Asset Management Company and Divis Laboratories

While on the flip side were around 42 stocks including Advani Hotels & Resorts (India), Chembond Chemicals, Last Mile Enterprises and Signpost India.

Global markets remained relatively subdued as US stock exchanges were closed for a public holiday, leading to a quieter international trading environment. This allowed domestic factors and sector-specific triggers to dictate market movements.