RBI Rate Cut and Liquidity Measures Boost Indian Markets; Sensex and Nifty Open Higher
The Indian stock markets started the week on a positive note, with major indices opening higher on Monday, June 9. Investor confidence received a significant boost following the Reserve Bank of India’s (RBI) recent jumbo rate cut and liquidity-enhancing measures. These steps have set the tone for a strong trading session and optimism among market participants.
Strong Opening for Key Indices
The Nifty 50 index kicked off at 25,131.25, up by 128.20 points, reflecting a gain of 0.51%. Similarly, the BSE Sensex began the day at 82,616.12, rising 427.13 points or 0.52%. Market experts expect this positive momentum to sustain throughout the trading day, backed by both domestic policy actions and encouraging global market trends.
Global Developments Fuel Market Optimism
A significant factor contributing to the positive sentiment is the ongoing trade negotiations between the US and China. With the July 9 deadline approaching for the US tariff pause, investors worldwide are closely watching the developments. The recent surge in US markets, fueled by stronger-than-expected non-farm payroll data, has added further impetus to risk markets globally, benefiting Asian markets including India.
Sectoral Performance and Market Breadth Broad market indices also reflected optimism, with all major segments witnessing gains. The Nifty Midcap rose by 0.6%, Nifty Smallcap by 0.7%, Nifty 100 by 0.44%, and Nifty Bank by 0.4%. Among sectoral indices, the Information Technology sector led the rally, gaining over 1%. Other notable performers included the Auto sector (up 0.89%), Media (up 0.8%), Pharma (up 0.3%), PSU Banks (up 0.93%), and Private Banks (up 0.75%).
Technical Outlook
Technical analysts are bullish on the near-term outlook. The Nifty index is currently approaching a strong resistance level around 25,300 points. A breakout above this level could signal continuation of the upward trend. The index is trading above all key moving averages, reinforcing the potential for further gains. Recent back-to-back bullish candles indicate dominance by buyers, suggesting that the price may push higher in the coming sessions.
Looking Ahead
Despite some supply pressure from initial public offerings (IPOs), private equity exits, and promoter block deals, which have collectively crossed USD 6 billion this year, the market sentiment remains positive. Liquidity measures and the rate cut by RBI have energized both rate-sensitive sectors and the broader market.
Global markets have also opened on a positive note. Japan’s Nikkei 225 surged 1.10%, Hong Kong’s Hang Seng rose by 1.05%, South Korea’s KOSPI increased by 1.68%, and Taiwan’s weighted index climbed 0.52%, reflecting broad-based optimism in the Asian region. The RBI’s jumbo rate cut along with strategic liquidity measures has reinforced investor confidence and created a positive environment for Indian equity markets. Combined with supportive global cues and a strong technical setup, Indian markets are poised to continue their upward momentum in the near term. Investors will be closely monitoring the evolving trade talks and economic data as they navigate this promising market landscape.
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