The Reserve Bank of India’s 50 basis-point repo rate cut continued to push Indian equity markets higher on Monday, helped by a global rally. Market benchmark indices, Sensex and Nifty, surged after the opening bell.
The BSE Sensex gained more than 480 points to as high as 82,669 while the NSE Nifty rose by 157 points to 25,610 in early trade.
“The monetary bazooka fired by the RBI on Friday will keep the market spirits alive in the near term,” reasoned V.K. Vijayakumar of Geojit Investments.
Among the Sensex, Bajaj Finance, Kotak Mahindra Bank, Bajaj Finserv, Axis Bank, Tata Motors, IndusInd bank, TCS, Tech Mahindra, HCL Tech, and Infosys led the gainers. Airtel, ICICI Bank, and Adani Ports were among the top laggards.
Shares of the exchange BSE Ltd, listed on the National Stock Exchange, hit a new high of ₹3024.90 as interest mounted on the possible IPO of the NSE. With this, the stock has jumped around 240 per cent from a year ago.
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Vijayakumar, however, cautioned that the RBI MPC rate cut was not sufficient to sustain the rally. “More important is the trend in earnings growth. Q4 results indicate better earnings growth for midcaps. But large and small caps continue to struggle,” he added.
Global markets in the green helped the morning rally. US markets had ended higher despite the public spat between the American president, Donald Trump, and the world’s wealthiest man, Elon Musk.
Major Asian market benchmark indices, including the Kospi, Nikkei 225, SSE Composite, and Hang Seng, were trading higher in the early sessions of Monday.
Despite foreign institutional investors (FIIs) turning net sellers in recent weeks, they bought ₹1,009.71 crore worth of equities on Friday. Last week ended with the Sensex settling 746.95 points higher at 82,188.99 and the Nifty crossing the 25,000-level by 252.15 points to settle at 25,003.05 points.