Indian Stocks Climb Amid Trade Deal Hopes and Rate Cut Expectations

In a positive start to Thursday's trading session, Indian stock indices opened higher as investor sentiment was lifted by optimism surrounding the India-US trade deal and potential monetary easing by the Reserve Bank of India (RBI). The Sensex rose 26.22 points, while the Nifty 50 experienced a minor gain of 8.65 points.

Significant gainers included companies like Dr Reddy's Labs and Cipla, even as all sectoral indices in the National Stock Exchange showed green. Commenting on the landscape, Ajay Bagga, an expert in banking and markets, highlighted the focus on the RBI's Monetary Policy Committee meeting on Friday, which could introduce a 25 basis points rate cut.

A shift in foreign portfolio investors' stance was noted as they turned net sellers for the second consecutive month. Experts suggest that the recent movements in FPI flows, coupled with the decline in the US dollar index, might predicate renewed interest in emerging markets including India. Meanwhile, market analysts emphasize close monitoring of the upcoming trade negotiation developments and the ongoing RBI policy assessment as key determinants of market direction.

(With inputs from agencies.)