Indian equities responded positively to the RBIās aggressive easing, with the Sensex rising over 100 points and the Nifty crossing 25,100, fueled by optimism from easing US-China-India trade dynamics . Auto stocks led the charge, supported by softening oil prices and renewed investor interest. While financials lagged slightly as profit-booking set in, broader sectors maintained upward momentum supported by both foreign and domestic funds.
Experts view the rally as a reflection of relief from the monetary boost. Yet, with anticipation of profit-booking and valuations looking rich, analysts caution that gains may remain sector-specific and volatile. Watchers suggest keeping an eye on banking sector earnings and bond yieldsāespecially after early pullbacks in financial names following the policy change. With global trade sentiment improving, capital flows into India could further strengthen the rupee and stock markets.
