Mumbai (Maharashtra) [India], June 9 : Indian stock markets started the week on a strong note, opening higher on Monday as investor confidence got a boost from the recent jumbo rate cut announced by the Reserve Bank of India (RBI).
The Nifty 50 index opened at 25,131.25, gaining 128.20 points or 0.51 per cent. Similarly, the BSE Sensex began the day at 82,616.12, rising 427.13 points or 0.52 per cent.
Market experts believe that Indian equities are likely to remain positive throughout the day. The strong momentum is being supported not only by the RBI's rate cut and liquidity measures but also by positive cues from global markets.
Ajay Bagga, a banking and market expert, toldthat global investors are closely watching trade talks between the US and China, especially with the Trump tariff pause deadline approaching on July 9.
"Trump policy is entering deal making territory as we enter the last month before the July 9th tariff deadline. US-China talks start a second round in London today. This is providing optimism to risk markets which were already enthused by the higher than expected US non-farm payrolls data on Friday," Bagga said.
He added, "The surge in US markets is giving a fillip to Asian markets. Indian markets are also expected to rise with the RBI jumbo rate cut and liquidity measures providing a positive boost to rate-sensitive and the broader markets both. Indications are for a positive open for the Indian markets, despite the supply from IPOs, PE funds and promoters cashing out via block deals which have crossed USD 6 billion for the year."
In the broader market, all major indices saw gains during the opening session. Nifty Midcap rose 0.6 per cent, Nifty Smallcap gained 0.7 per cent, Nifty 100 was up by 0.44 per cent, and Nifty Bank increased by 0.4 per cent.
Among sectoral indices on the NSE, Nifty IT led the rally with a gain of more than 1 per cent. Other sectors also performed well, with Nifty Auto up by 0.89 per cent, Nifty Media gaining 0.8 per cent, Nifty Pharma rising 0.3 per cent, Nifty PSU Bank up by 0.93 per cent, and Nifty Private Bank increasing by 0.75 per cent.
"Currently, the Nifty is hovering towards a strong resistance of 25300. A breakout above this resistance would indicate a continuation of the uptrend in the sector. Technically, the price trading above all key moving averages further signals more upward momentum in the sector. Last week, Nifty 50 gained points. Back-to-back bullish candles indicate the dominance of bulls in the sector, potentially pushing the price to a higher high" said Technical analyst Sunil Gurjar, founder of Alphamojo Financial Services and a SEBI-registered research analyst.
Global markets also opened positively on Monday. Japan's Nikkei 225 index gained 1.10 per cent, Hong Kong's Hang Seng index rose by 1.05 per cent, South Korea's KOSPI increased by 1.68 per cent, and Taiwan's weighted index added 0.52 per cent.
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