Indian Markets Soar on RBI Rate Cut and Global Optimism

The Indian stock markets began the week with impressive gains, bolstered by a hefty interest rate cut from the Reserve Bank of India (RBI). On Monday, the Nifty 50 index saw a jump of 128.20 points or 0.51%, opening at 25,131.25, while the BSE Sensex surged by 427.13 points or 0.52%, starting the day at 82,616.12.

Experts attribute this upward momentum to both the central bank's monetary policy actions and encouraging signals from international markets. Banking and market specialist Ajay Bagga stated that global investors are monitoring the US-China trade discussions, particularly with the approaching Trump tariff pause deadline of July 9.

Bagga highlighted that the prevalent optimism in risk markets is fueled by the latest US non-farm payrolls data and ongoing US-China negotiations in London. This optimism is trickling into Asian markets, with Indian equities anticipated to benefit further from domestic policy measures and global trends despite challenges such as IPO supply and significant market cash-outs.

Across the broader market, all major indices experienced gains during the opening session. The Nifty Midcap climbed 0.6%, the Nifty Smallcap increased by 0.7%, Nifty 100 rose 0.44%, and Nifty Bank edged up 0.4%. Sector-wise, Nifty IT was the front-runner with over a 1% rise, supported by strong performances across other sectors including Auto, Media, Pharma, PSU Bank, and Private Bank indices.

According to Technical Analyst Sunil Gurjar, founder of Alphamojo Financial Services, the Nifty is nearing a critical resistance level of 25,300, and a break above could signal a continuation of the upward trend. Currently trading above key moving averages, the market exhibits bullish momentum that could drive the prices to new highs. Global markets also reflected a positive tone on Monday, with Japan's Nikkei 225, Hong Kong's Hang Seng, South Korea's KOSPI, and Taiwan's index all posting gains.

(With inputs from agencies.)