The Indian stock indices revived during the day on Thursday after a slow start at the opening, as investors anticipate a rate cut in the ongoing MPC meeting says market experts.
The Nifty 50 index surged 165 points or 0.67 per cent to 24,628.80 points at the time of filing this report, while the BSE Sensex gained 600 points or 0.74 per cent to 81,560.61 points.
Experts noted that the markets are gaining as investors anticipate a rate cut in the MPC meeting by the RBI.
However, rate cut expectations are very low. If the RBI changes its stance amid a weakening economy, the markets is likely react to it. Additionally, buying by foreign investors is supporting the upward movement in the market.
“After a while we are seeing that FIIs are buying into the Indian markets. So the tone towards the year end seems to be bullish though the economic indicators point to a slowdown. There is an expectation that the RBI will cut rates to support growth. Government spending will also increase to signal growth” said Shriram Subramanian, founder and MD, InGovern Research Services.
Nifty IT led the gains in the sectoral indices with a surge of more than 1.28 per cent. Nifty Private Bank and Nifty Oil & Gas also rose by 0.5 per cent, while Nifty Media, Nifty Metal, and Nifty Realty continued to face pressure.
The top gainers on the NSE include Titan, Infosys, TCS, Dr Reddy, and Wipro, while Bajaj Auto, SBI Life, and Cipla emerged as the top losers.
The Nifty 50 index opened at 24,539.15 points with a gain of 71.70 points or 0.29 per cent, while the BSE Sensex opened at 81,182.74 points with a gain of 226.41 points or 0.28 per cent.
“FIIs turning buyers is positive for markets, particularly for large caps. The strength in banking stocks has the potential to take the Bank Nifty towards all-time highs. This can help Nifty,too, to move higher” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
The foreign investors continued buying this whole week in the Indian markets, on Wednesday they bought equities worth Rs 1,797 crore.