BENGALURU - Indian shares advanced on Monday, tracking a rally in global stock markets, as tensions eased after the United States and Mexico struck a migration deal last week to avert a tariff war, and weak U.S. jobs data raised hopes of interest rate cuts by the Federal Reserve.
U.S. President Donald Trump called off a potential 5% import tariff on Mexico after the two countries agreed on Friday to rapidly expand a controversial asylum programme and deploy security forces to stem the flow of illegal Central American migrants.
U.S. job growth slowed sharply in May and wages rose less than expected, raising fears that a loss of momentum in economic activity could be spreading to the labour market.
The broader NSE Nifty was up 0.7% at 11,956.30 as of 0435 GMT, while the benchmark BSE Sensex was 0.77% higher at 39,921.82.
"The opening we have seen today is based on global cues and is purely sentimental," said Krish Subramanyam, an equity adviser at Altamount Capital.
IT stocks led gains with the Nifty IT index up 1.2%.
Shares of Tata Consultancy Services, Infosys Ltd and Tech Mahindra Ltd rose between 1.6% and 2%.
Britannia Industries Ltd rose 2.7% to the top of the NSE Nifty.
Among losers, Jammu and Kashmir Bank fell 20% in its biggest intraday drop in over five years, after its chief executive officer, Parvez Ahmed, stepped down on Saturday.