Daily Market Commentary : Nifty up 130 pts to 24,751 on global cues, RBI cut hopes Says Mr. Siddhartha Khemka, Motilal Oswal Financial Services Ltd
Below the Quote on Daily market commentary by Mr. Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services Ltd
Nifty reclaimed the 25,000-mark, rising 252 points (+1%) after the RBI MPC delivered surprise double liquidity booster for the markets. The RBI front-loaded the monetary easing cycle as it announced a massive 50bps cut in the repo rate (vs. expected 25bps), while changing the stance to 'Neutral' from 'Accommodative' given global growth challenges. Additionally, it announced a 100-bps cut in the cash reserve ratio (CRR), spread across four tranches, to infuse liquidity in the system. The announcement triggered a sharp rally in banking and financial stocks with Nifty Bank (+1%)and Nifty Financial Services (+1%) indices hitting all-time high levels of 56,693 and 26,921 respectively. Nifty Realty witnessed strong buying interest, gaining 4.7% after the jumbo RBI rate cut bolstered sentiments for the sector. Monsoon-linked sectors such as Fertilizers, Agro-chemicals, Rural Finance, and two-wheelers will be in focus, backed by forecasts of an above-average monsoon in 2025. We expect Indian markets to witness a gradual up-move, supported by positive sentiment following higher than anticipated rate cut by RBI and optimism surrounding a potential US-India trade agreement with officials from both sides meeting in New Delhi this week to finalise the first phase of the proposed deal. Meanwhile, global headwinds including unexpected shifts in US tariffs and ongoing geopolitical tensions may induce volatility. Sectoral action would continue with strong momentum expected in rate-sensitive sectors like Banks, Financials, Realty and Auto after the surprise liquidity boost.
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