CHENNAI: Indian benchmark equity indices began Tuesday’s session in positive territory, tracking firm cues from Asia-Pacific markets and optimism surrounding China’s latest rate cut. The BSE Sensex opened at 82,116.17, gaining 56.75 points or 0.07%, while the NSE Nifty50 rose by 50.75 points or 0.20% to 24,996.20.
Broader markets underperformed in early trade. The Nifty Midcap100 and Smallcap100 indices slipped 0.12% and 0.09% respectively.
Sectoral Trends
Most sectoral indices on the NSE were in the green, with Nifty Metal leading gains, buoyed by hopes of increased Chinese demand following fresh economic stimulus. The lone underperformer was the Nifty Healthcare index, which traded marginally lower amid mixed earnings sentiment.
Global Cues and Central Bank Moves
Asia-Pacific stocks rose broadly on Tuesday, supported by central bank actions and steady investor sentiment. Japan’s Nikkei gained 1.05%, and Topix added 0.72% and South Korea’s Kospi was up 0.34%. While Australia’s ASX 200 advanced 0.77%.
Markets responded to China’s decision to cut key lending rates, 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 3.0%, and the 5-year LPR to 3.5% from 3.6%, amid rising trade tensions and faltering economic growth.
Meanwhile, investors are awaiting the Reserve Bank of Australia’s (RBA) policy decision, where a 25 bps rate cut to 3.85% is expected as inflation pressures ease.
Corporate Action & Earnings Buzz
Investor attention remains fixed on a packed earnings calendar. Markets will react to recent results from Power Grid, Bharat Electronics (BEL), Petronet LNG, and DLF.
Key companies set to report results today include, Hindalco Industries, Solar Industries, Max Healthcare, United Spirits, Zydus Lifesciences, Torrent Pharmaceuticals, Dixon Technologies, NHPC, Fortis Healthcare, Whirlpool of India, JK Tyre, Gland Pharma, and many others.
Additionally, Borana Weaves' ₹144.89 crore IPO opens for subscription today, adding to the primary market buzz.
Commodities Snapshot
Gold prices surged on safe-haven demand and a weaker dollar following Moody’s downgrade of US sovereign credit. While spot gold rose 0.9% to $3,229.51/oz, US Gold Futures climbed 1.5% to $3,233.50/oz.
In energy markets, oil edged higher amid stalled U.S.-Iran nuclear talks, offsetting broader macro uncertainty. Brent crude was 0.2% to $65.54/barrel and WTI Crude gained 0.32% to $62.69/barrel.
Market Outlook
With global cues supportive and ongoing central bank easing in Asia, sentiment remains cautiously optimistic. However, movement in mid and small-cap segments suggests selective profit-booking. The rupee’s stability, healthy FII inflows, and strong earnings momentum could provide near-term support to Indian equities.