Mumbai, Feb 9 (IANS) The Indian equity markets posted strong gains on Monday for the second consecutive session, buoyed by the announcement of an interim framework for the India–US trade deal.

At the closing bell, the Sensex gained 485 points, or 0.58 per cent, to settle at 84,065. The Nifty surged 173 points, or 0.68 per cent, to close at 25,867.

The broader markets posted stronger gains than benchmark indices, as Nifty Midcap 100 index added 1.58 per cent, while the NSE Smallcap 100 surged 2.64 per cent.

Supportive cues from broader Asian markets also helped sustain the positive momentum through the session.

Buying interest was visible in PSU banks, consumer durables, realty, defence, pharma and auto stocks, while IT stocks showed mixed trends amid ongoing assessment of global technology developments.

All sectoral indices traded with gains. Nifty Media surged 4.37 per cent -- the biggest gainer -- while Nifty Consumer Durables climbed 3.60 per cent. Nifty PSU Bank rose 3.34 per cent, Nifty Realty gained 2.61 per cent and Nifty Metal added 1.56 per cent.

Analysts said participation remained selective after the strong initial uptick, as investors refrained from aggressive positioning ahead of key global and domestic macro cues.

Overall, the market appears to be in a phase of gradual recovery and consolidation, with the near-term direction likely to be driven by global macro developments, currency movements and the sustainability of risk-on sentiment reflected in foreign fund flows, they added.

The Indian rupee surged 0.12 per cent against the dollar to 90.68 per dollar on Monday.

Immediate support lies at 25,550–25,600, followed by a stronger demand area near 25,450–25,500, market watchers said.

Bank Nifty is currently consolidating around the 60,500–60,700 zone, reflecting healthy digestion of recent gains rather than distribution, they added.

--IANS

aar/na