Indian equity markets surged over 400 points on Tuesday as optimism around a potential rate cut by the Reserve Bank of India’s Monetary Policy Committee, which began its meeting today, lifted investor sentiment across sectors.
Market Performance
Benchmark indices posted strong gains across the board:
- Sensex: 80,450 (+420 points, +0.52%)
- Nifty 50: 24,380 (+125 points, +0.51%)
- Bank Nifty: 51,850 (+380 points, +0.74%)
- Nifty Midcap 100: 55,200 (+1.1%)
MPC Meeting Focus
The three-day MPC meeting started today, with the decision expected on Thursday. Markets are pricing in a 25 basis point rate cut given moderating inflation and slowing growth.
Sectoral Gainers
Rate-sensitive sectors led the rally. Banking, real estate, and auto stocks posted significant gains on expectations of lower borrowing costs.
FII Activity
Foreign institutional investors maintained their buying streak, purchasing Rs. 3,200 crore worth of equities today. DIIs added Rs. 1,500 crore.
Global Cues
Asian markets traded mixed while US futures indicated a positive opening. The weak dollar continued to support emerging market flows.
Technical View
Nifty closed above the crucial 24,300 resistance level. Technical analysts see the next resistance at 24,500, with support at 24,100.
Market Breadth
Positive market breadth with 1,850 stocks advancing versus 980 declining. All sectoral indices ended in the green.
