From Fear to Fire: Sensex, Nifty Rally Amid Rate Cut & Global Uncertainty”
1. The Nifty wrapped up the week at 25,112, climbing about 1.5%, thanks to a strong Friday rally that saw a 1.29% jump to finish the week on a high note.
2. The Sensex made a remarkable comeback, soaring over 1,000 points, driven by gains in financial and banking stocks, breaking a three-day losing streak.
3. The RBI surprised everyone with a 50 bps cut in the repo rate (now at 5.50%) and a 100 bps reduction in the CRR, which boosted liquidity and lifted sectors like real estate, auto, and banking by as much as 5%.
4. Geopolitical tensions are still a concern: Ongoing U.S.–Iran conflicts and Israeli strikes on Iranian nuclear facilities have added to market volatility, impacting oil and forex rates.
5. The IT sector is bouncing back: The Nifty IT index has surged around 10.5% in less than two months, although there’s still a cautious mood due to the global Fed’s pause and geopolitical uncertainties.
6. Foreign Investor Pulse: Following the RBI’s easing measures, foreign portfolio investors (FPIs) poured in approximately ₹3,347 crore, boosting equity inflows.
What’s Next to Watch :
Looking ahead to what’s on the horizon:
Keep an eye on around June 25 ± 1 day for a possible market reversal or continuation.
Oil and Rupee Update: Rising crude prices might put pressure on inflation and foreign exchange rates; the Reserve Bank of India’s stance will be crucial.
Upcoming IPOs and corporate news: The debut of HDB Financial, changes in Sensex stocks, and the flow of foreign and domestic institutional investors could shift the market momentum.
Global central bank signals: Decisions from the U.S. Federal Reserve, Bank of Japan, and Bank of England will guide market direction.
https://finance.yahoo.com/news/live/stock-market-today-sp-500-nasdaq-fall-amid-fed-rate-uncertainty-as-trump-mulls-iran-move-200035781.html
