The Indian benchmark indices closed after registering sharp gains backed by investor optimism post the rate cut announcement as the Sensex gained over 400 points to end trade at above 85,700 and the Nifty closed trade above 26,100 rising over 150 points.
In the 30-share BSE Sensex, among the top gainers were stocks like State Bank of India, Bajaj Finserv, Bajaj Finance, Maruti and HCLTech. Meanwhile, the lagards included stocks such as Bharat Electronics, Sun Pharmaceuticals, Trent, TMPV and Eternal.
In the broader markets, the Nifty Midcap 50 gained 0.76 per cent and the Nifty Microcap 250 tumbled 1.12 per cent. Sectorally, the Nifty PSU Bank index jumped 1.51 per cent and the Nifty Media fell 0.48 per cent.
Previously, during the opening session, as the Sensex was trading at 85,187.35 falling 77 points, and the Nifty was trading at 26,014.75 declining 57 points.
Foreign Investors & Global Markets
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,944.19 crore on Thursday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 3,661.05 crore, according to exchange data.
Investors largely stayed on the sidelines as persistent foreign fund outflows and uneven global cues continued to dampen sentiment.
In Asian markets, South Korea's Kospi and Shanghai's SSE Composite index traded in positive territory while Japan's Nikkei 225 index and Hong Kong's Hang Seng index quoted lower. The US markets also ended on a flat note on Thursday.
What Do Experts Say?
Indian markets have reacted sharply to the RBI’s unexpected 25 bps rate cut, a move viewed as improbable in the wake of strong Q2 GDP figures. The surprise easing, coupled with significantly lower inflation projections and supportive liquidity measures, has fuelled a broad risk-on rally across equities. Rate-sensitive segments such as autos, real estate and NBFCs are leading the uptrend as borrowing costs ease, said Vinod Nair, Head of Research at Geojit Financial Services.