Mumbai, Feb. 6 -- Indian markets head into the trading week on a cautiously constructive note, anchored by supportive monetary and trade developments. The Reserve Bank of India's Monetary Policy Committee held the repo rate at 5.25% and maintained a neutral stance, reinforcing stability after recent volatility. This helped the Sensex rise nearly 266 points and the Nifty close above 25,650, while the rupee logged its strongest weekly gain in over three years, underpinned by optimism around new trade pacts.

Investor sentiment was also boosted by the India-US trade deal, which spurred a powerful relief rally in early February. However, global risk-off pressures persisted, with tech stocks underperforming amid sell-offs in the U.S. and AI-re...