Indian markets stay bullish for fourth consecutive day; Sensex surges 256 points on RBI rate cuts

Indian stock markets extended their winning streak for the fourth straight session on Monday, buoyed by the Reserve Bank of India’s recent monetary policy easing.

The BSE Sensex closed 256.22 points higher at 82,445.21, up 0.31%, while the NSE Nifty advanced 100.15 points to 25,103.20, marking a 0.40% gain.

The rally was largely driven by continued optimism following the RBI’s unexpected move to slash the repo rate by 50 basis points to 5.5%, along with a phased 100-basis-point reduction in the Cash Reserve Ratio (CRR). These measures are expected to boost market liquidity, particularly benefiting midcap stocks.

“Financial stocks extended their gains on the back of the RBI’s aggressive policy stance. The twin rate cuts are likely to support credit growth and improve market sentiment in the near-to-medium term,” said Vinod Nair, Head of Research at Geojit Financial Services.

Sector-wise, Nifty Financial Services Ex-Bank led the gains, followed by Nifty PSU Bank and Nifty Oil & Gas. Nifty Realty was the only index to end in the red.

A major highlight of the session was the Bank Nifty index, which breached the 57,000 mark for the first time ever, signaling strong bullish momentum in the banking space.

Global cues also played a role, as U.S. jobs data showed employers added 139,000 jobs in May, with average hourly earnings rising 0.4%, boosting investor sentiment worldwide. Optimism around renewed U.S.-China trade negotiations further lifted global markets.

“FIIs have shown renewed interest, with large-cap stocks gaining momentum. Overall, the domestic and international macro outlook appears supportive for equities in the short term,” added Nair.

The RBI’s policy moves, aimed at enhancing credit availability and stimulating growth, are expected to sustain the current bullish trend in the Indian equity markets.