Mumbai, Aug. 25 -- The domestic equity benchmarks closed higher on Monday, led by a rally in IT stocks after U.S. Federal Reserve Chair Jerome Powell signaled that rate cuts could begin as early as September. Speaking at the Jackson Hole symposium on Friday, Powell noted rising risks to the U.S. labor market even as inflation pressures persisted, sparking hopes of easier monetary policy.

Lower U.S. borrowing costs typically boost appetite for emerging-market assets, with India among the key beneficiaries. However, investor sentiment remained cautious ahead of fresh U.S. tariffs on Indian goods. President Donald Trump's additional 25% levy, set to take effect on August 27, could raise duties as high as 50%.

While large-cap IT stocks drov...