The Indian rupee appreciated 38 paise to close at 85.03 (provisional) against the US dollar on Monday, supported by sustained foreign fund inflows, easing crude oil prices and a bullish trend in domestic equities. Indian shares rose sharply on Monday despite heightened tensions between India and Pakistan, following the recent Pahalgam attack. Sentiment was underpinned as India's Minister of State for Commerce, Jitin Prasada, confirmed continuous dialogue with the U.S. on a bilateral trade deal. U.S. Treasury Secretary Scott Bessent has said that India is likely to become the first nation to finalize a bilateral trade agreement with the U.S. — a development that would help New Delhi sidestep the 26 percent reciprocal tariffs that have been paused till July. The benchmark S&P/BSE Sensex closed up 1,005.84 points, or 1.27 percent, at 80,218.37, after having hit a high of 80,321 earlier. The broader NSE Nifty index hit an intraday high of 24,355 before closing up 289.15 points, or 1.20 percent, at 24,328.50. Meanwhile, rising forex reserves also boosted investor sentiments. At the interbank foreign exchange, the domestic unit opened at 85.29 and moved between the intra-day high of 84.96 and the low of 85.42 against the greenback.