Indian benchmark equity indices started Tuesday’s trading session on a positive note, buoyed by firm cues from Asia-Pacific markets and optimism following China’s recent interest rate reduction. The BSE Sensex opened at 82,116.17, up 56.75 points or 0.07%, while the NSE Nifty50 gained 50.75 points, or 0.20%, to reach 24,996.20.
However, broader market indices showed some weakness in early trade. The Nifty Midcap100 and Smallcap100 indices declined by 0.12% and 0.09%, respectively.
Sector Performance
Most sectoral indices on the NSE traded in the green, led by strong gains in the Nifty Metal index. This rally was driven by expectations of increased demand from China, supported by fresh economic stimulus measures. Conversely, the Nifty Healthcare index was the only sector to witness a marginal decline amid mixed earnings results.
Global Market Trends and Central Bank Moves
Markets across the Asia-Pacific region broadly advanced on Tuesday, supported by central bank policies and steady investor confidence. Japan’s Nikkei rose 1.05%, while the Topix added 0.72%. South Korea’s Kospi increased by 0.34%, and Australia’s ASX 200 gained 0.77%.
These gains followed China’s surprise cut to key lending rates, marking the first such move since October 2024. The People’s Bank of China (PBoC) reduced the 1-year Loan Prime Rate (LPR) by 10 basis points to 3.00%, and the 5-year LPR from 3.6% to 3.5%, in a bid to counter slowing economic growth and escalating trade tensions.
Meanwhile, investors are closely monitoring the Reserve Bank of Australia (RBA) policy announcement, where a 25 basis points rate cut to 3.85% is widely anticipated as inflationary pressures ease.
Corporate Earnings and Market Activity
Investor focus remains sharply on an active earnings calendar. The markets are reacting to recent quarterly results from Power Grid, Bharat Electronics (BEL), Petronet LNG, and DLF.
Key companies scheduled to report their earnings today include Hindalco Industries, Solar Industries, Max Healthcare, United Spirits, Zydus Lifesciences, Torrent Pharmaceuticals, Dixon Technologies, NHPC, Fortis Healthcare, Whirlpool of India, JK Tyre, and Gland Pharma among others.
Adding to market activity, Borana Weaves has opened its Initial Public Offering (IPO) for subscription, aiming to raise ₹144.89 crore, generating further interest in the primary market.
Commodities Update
Gold prices surged amid safe-haven demand and a weaker US dollar following Moody’s downgrade of the US sovereign credit rating. Spot gold prices rose 0.9% to $3,229.51 per ounce, while US Gold Futures climbed 1.5% to $3,233.50 per ounce.
In the energy sector, oil prices edged higher amid stalled nuclear talks between the US and Iran, offsetting concerns over broader macroeconomic uncertainties. Brent crude increased 0.2% to $65.54 per barrel, and WTI crude rose 0.32% to $62.69 per barrel.
Market Outlook
Supported by favorable global cues and ongoing central bank easing measures in Asia, market sentiment remains cautiously optimistic. However, the slight declines in midcap and smallcap segments indicate selective profit-taking by investors. Stability in the Indian rupee, healthy foreign institutional investor (FII) inflows, and robust corporate earnings are expected to provide near-term support to Indian equity markets.
