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The Indian stock indices ended on a positive note on Monday, rising for the fourth straight session, continuing to take cue from the RBI's decision to cut repo rates by 50 basis points.
The Sensex closed at 82.445.21 per cent, up 256.22 points or 0.31 per cent, while Nifty closed at 25,103.20 points, up 100.15 points or 0.40 per cent. "Financial stocks extended their rally in Indian markets, driven by the RBI's supportive aggressive policy of rate and CRRA cut. These actions have boosted investor confidence and are expected to enhance liquidity in the near to medium term, especially in midcaps," said Vinod Nair, Head of Research, Geojit Investments Limited. All the Nifty Sectoral indices ended their day in the green territory except Nifty Realty. Out of all the sectors, Nifty Financial Services Ex-Bank was the top mover, followed by Nifty PSU Bank and Nifty Oil & Gas. "Banking stocks were the standout performers of the session, with the Bank Nifty index extending its rally to hit a fresh all-time high. For the first time ever, the index breached the 57,000 mark, underscoring the market's optimism following a surprise 50 basis points cut in the repo rate and a simultaneous reduction in the Cash Reserve Ratio (CRR) by the Reserve Bank of India (RBI)," according to Bajaj Broking Research. According to the latest US jobs data, employers added 1,39,000 jobs last month. Average hourly earnings increased 0.4% in May against a rise of 0.3%, as reported by Reuters. "The positive US jobs data and renewed optimism over U.S.-China trade talks lifted global sentiment. Domestically even large caps expressed renewed momentum led by FIIs inflows," Vinod Nair added. On Friday, RBI decided to reduce the policy repo rate under the Liquidity Adjustment Facility by 50 basis points to 5.5 per cent. This rate cut was accompanied by a cut in the Cash Reserve Ratio (CRR) by 100 basis points in four tranches of 25bps each. (ANI)
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