FX.co ★ India Stocks Extend Gains

On Thursday, the BSE Sensex experienced an increase of 389 points, equivalent to a 0.5% rise, reaching 81,387 points during morning trading. This upward trajectory follows the previous session’s gains, driven by optimism that the Reserve Bank of India (RBI) may announce interest rate cuts at its monetary policy meeting scheduled for Friday. Anticipation is building around the potential reduction of the central bank's key repo rate by 25 basis points, bringing it down to 5.75%, the lowest since August 2022, spurred by decreasing inflation. All sectors saw positive movement, with oil & gas and technology leading the charge. Additionally, small- and mid-cap stocks showed advancements, increasing by 0.6% and 0.3%, respectively. Support came from easing US Treasury yields and a weakening US dollar. At the same time, market participants are keeping a vigilant eye on the ongoing US-China trade tensions. The Nifty 50 mirrored this performance, climbing 0.5% to surpass 24,700 points, with significant contributions from Adani Ports (1.5%), Power Grid (1.4%), Reliance Industries (1.3%), Mahindra & Mahindra (1.2%), and HDFC Bank (0.8%).