Mumbai, India : India’s stock markets opened on a strong note on Monday as investor sentiment turned upbeat following a surprise 50 basis point (bps) rate cut by the Reserve Bank of India (RBI) and a positive trend in global equity markets. The benchmark indices—BSE Sensex and NSE Nifty—saw sharp gains in early trade, continuing the momentum from the previous week.
Sensex and Nifty Rally Ahead
The 30-share BSE Sensex surged by 480.01 points to reach 82,669, while the Nifty 50 climbed 157.05 points to touch 25,160.10 during early hours of trading. The rally reflects a combination of strong global cues, central bank support, and renewed optimism surrounding India’s economic growth outlook.
Market analysts attributed the uptick to RBI’s unexpected policy move, which is widely seen as a growth-supportive signal amid a challenging macroeconomic environment. This move is expected to ease borrowing costs and boost consumption and investment activity in the near term.
RBI’s Bold Move Sparks Market Optimism
In a surprise monetary policy announcement on Friday, the Reserve Bank of India slashed the repo rate by 50 basis points, the highest single-cut in recent times. This “jumbo cut” brought the repo rate down to stimulate economic growth and provide relief amid slowing demand.
The central bank also hinted at maintaining an accommodative stance, which further lifted investor confidence.
According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services:
“The monetary bazooka fired by the RBI on Friday will keep the market spirits alive in the near term. But for a sustained rally, earnings growth—especially in large and small caps—needs to pick up.”
Major Gainers and Losers
Among the Sensex constituents, Kotak Mahindra Bank, Tata Motors, Axis Bank, Maruti Suzuki, Infosys, HCL Technologies, Tech Mahindra, and Bajaj Finance emerged as the top gainers. These companies saw investor interest on expectations of improved earnings and stronger fundamentals.
On the flip side, Bharti Airtel, ICICI Bank, Adani Ports, and Tata Steel were among the early losers due to sector-specific pressures and profit-booking by traders.
Global Market Influence
The rally in domestic stocks was also bolstered by positive global cues. Key indices across Asia, including Japan’s Nikkei 225, South Korea’s KOSPI, Shanghai Composite, and Hong Kong’s Hang Seng, were trading in green territory.
Meanwhile, Wall Street closed higher on Friday, driven by renewed optimism over US-China trade talks and strong tech earnings. The Dow Jones, NASDAQ, and S&P 500 all posted gains, which had a spillover effect on Asian and Indian markets.
Crude Oil and Currency Watch
On the commodities front, Brent crude, the global oil benchmark, dipped slightly by 0.11% to trade at $66.40 per barrel. Lower oil prices are beneficial for India’s current account balance and inflation outlook, further supporting equity valuations.
The Indian rupee remained stable against the US dollar, as foreign capital inflows continued. Data from the exchanges showed that Foreign Institutional Investors (FIIs) purchased equities worth Rs 1,009.71 crore on Friday, indicating sustained confidence in India’s long-term growth story.
Market Experts Weigh In
Prashanth Tapse, Senior Vice President (Research) at Mehta Equities Ltd, said:
“Nifty bulls are back in action after the RBI surprised with a jumbo 50 bps rate cut, igniting hopes of an economic boost and lower EMIs for the common man. This move, along with Wall Street’s rally and renewed US-China trade optimism, has triggered a wave of buying.”
Experts believe that the central bank’s action may improve market liquidity and encourage risk-on sentiment across sectors, particularly banking, auto, realty, and technology.
Also Read:
India’s equity markets are off to a strong start this week, buoyed by a supportive central bank, strong global cues, and growing investor appetite. However, sustainability of the rally will hinge on corporate earnings, global developments, and macroeconomic indicators in the coming weeks.
With the RBI stepping in with bold action and FIIs returning to Indian equities, all eyes are now on how long this positive momentum can last.
2 Comments
Pingback: Khan Sir’s Grand Reception Goes Viral: First Public Appearance of His Wife Draws Massive Attention - TG Tips Bhaiya
kzgi03