Indian equity indices ended on a higher note, paring the three-day losing streak. The NSE Nifty 50 rose 305 points or 1.27% to settle the day’s trading at 24,298. The BSE Sensex settled 875 points or 1.11% higher at 79,468. HDFC Bank, Infosys, ONGC, L&T, and Coal India contributed the most to Nifty 50.
Sectoral Index
The Bank Nifty rose 370.70 points or 0.75% to end the session at 50,119 ending above the key psychological level of 50,000. Albeit, the Nifty Midcap 100 outperformed the overall markets, rising more than 1300 points or 2.45% settling the day’s trading at 56,873. In the broader markets, smallcap and midcap stocks closed in the green.
“Global markets experienced a notable rebound after the BoJ’s Deputy Governor reassured that the central bank would not raise interest rates during a period of financial instability. The Indian market also witnessed broad-based buying across sectors, with the Realty sector seeing a relief rally due to the reinstatement of indexation benefits. The carry trade issue appears to have been eased for now and the focus is on the ongoing RBI policy, which is likely to hold the rate and positive economic outlook,” said Vinod Nair, Head of Research at Geojit Financial Services.
Contrasting with the recent global trend of monetary easing, the Reserve Bank of India (RBI) remains steadfast in its policy stance of “withdrawal of accommodation, prioritizing inflation stabilization over growth stimulation. “The RBI’s decision to maintain its stance is driven by domestic inflation concerns, notably within the food sector,” said Arsh Mogre, Economist at Prabhudas Lilladher. This approach positions the RBI to adapt flexibly and responsively once inflation aligns more consistently with its target, rather than transient growth spurts, potentially leading to a more stable and predictable policy environment for investors.
Bank Nifty
“The Bank Nifty index opened with a gap up and saw profit booking in the first half. However, a late recovery helped Bank Nifty conclude the day on a positive note, at 50,119 levels. Technically, on a daily basis, the index has formed a homing pigeon candlestick pattern, a bullish reversal pattern. According to this pattern, if Banknifty sustains above yesterday’s high of 50,690, it may experience fresh bullish momentum. On the downside, 49,650 will act as key support for the Banknifty in the short run,” said Hrishikesh Yedve, Assistant Vice President of Technical and Derivatives Research at Asit C Mehta Investment Intermediates.
