India’s benchmark indices rose nearly 1% on Wednesday, snapping their eight-day losing run, led by gains in banking stocks after the Reserve Bank of India’s dovish monetary policy stance prompted traders to cut some of their bearish bets ahead of the trading holiday. Financial markets are shut for trading on Thursday for Gandhi Jayanti and Dussehra.
The NSE Nifty rose 225.2 points or 0.9% to close at 24,836.3. The BSE Sensex rose 715.69 points or 0.9% to end at 80,983.31.
“The bias has shifted from bearish to cautiously optimistic, but confirmation of a sustainable uptrend will require Nifty to stay above the 24,700 level on any pullback,” said Bhavya Shah, technical research analyst at Stoxbox.
The Nifty India Volatility Index or VIX — the market’s fear gauge — declined 7% to 10.3 levels, indicating some relief among traders.
Indian markets have come under pressure in recent sessions, weighed down by Donald Trump’s tariff offensives targeting India’s outsourcing and healthcare sectors. The sharp increase in H-1B visa fees has clouded earnings visibility for IT companies, while proposed levies on some Indian pharmaceutical exports to the US have stoked fears of margin erosion.
Together, these measures have dented investor sentiment, adding to concerns already brewing around high valuations and slowing earnings momentum.
Elsewhere in Asia, Japan fell 0.9%, while China advanced 0.5%, Hong Kong and South Korea rose 0.9% each and Taiwan went up 0.6%. The pan-Europe index Stoxx 600 was up 0.7% at the time of going to print.
At home, the Nifty Bank index rose 1.3% with Kotak Mahindra Bank, Axis Bank, ICICI Bank and HDFC Bank gaining between 1.5% and 4%.
“RBI’s policy announcement introduced key reforms for the banking and financial services sector, from ECL (expected credit loss) provisioning and M&A lending to easing NBFC norms for infrastructure financing, all of which are expected to support sectoral growth,” said Sunny Agrawal, head of fundamental research at SBI Securities. “The commentary stayed dovish, with a signal that rate cuts may follow if supported by data.”
The RBI kept the repo rate unchanged at 5.5% in the monetary policy on Wednesday.
Broader market indices also surged, as Nifty Midcap 150 gained 0.9% and Nifty Small-cap 250 rose 1.1%. Out of the 4,291 stocks traded on the BSE, 2,721 advanced and 1,440 declined at close.
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The NSE Nifty rose 225.2 points or 0.9% to close at 24,836.3. The BSE Sensex rose 715.69 points or 0.9% to end at 80,983.31.
“The bias has shifted from bearish to cautiously optimistic, but confirmation of a sustainable uptrend will require Nifty to stay above the 24,700 level on any pullback,” said Bhavya Shah, technical research analyst at Stoxbox.
The Nifty India Volatility Index or VIX — the market’s fear gauge — declined 7% to 10.3 levels, indicating some relief among traders.
Indian markets have come under pressure in recent sessions, weighed down by Donald Trump’s tariff offensives targeting India’s outsourcing and healthcare sectors. The sharp increase in H-1B visa fees has clouded earnings visibility for IT companies, while proposed levies on some Indian pharmaceutical exports to the US have stoked fears of margin erosion.
Together, these measures have dented investor sentiment, adding to concerns already brewing around high valuations and slowing earnings momentum.
Elsewhere in Asia, Japan fell 0.9%, while China advanced 0.5%, Hong Kong and South Korea rose 0.9% each and Taiwan went up 0.6%. The pan-Europe index Stoxx 600 was up 0.7% at the time of going to print.
At home, the Nifty Bank index rose 1.3% with Kotak Mahindra Bank, Axis Bank, ICICI Bank and HDFC Bank gaining between 1.5% and 4%.
“RBI’s policy announcement introduced key reforms for the banking and financial services sector, from ECL (expected credit loss) provisioning and M&A lending to easing NBFC norms for infrastructure financing, all of which are expected to support sectoral growth,” said Sunny Agrawal, head of fundamental research at SBI Securities. “The commentary stayed dovish, with a signal that rate cuts may follow if supported by data.”
The RBI kept the repo rate unchanged at 5.5% in the monetary policy on Wednesday.
Broader market indices also surged, as Nifty Midcap 150 gained 0.9% and Nifty Small-cap 250 rose 1.1%. Out of the 4,291 stocks traded on the BSE, 2,721 advanced and 1,440 declined at close.
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