Market Wrap: D-Street breaks 3-day losing run amid RBI rate cut hopes; Sensex adds 261 pts, Nifty above 24,600

Indian benchmark indices, Sensex and Nifty, snapped a three-day losing streak to end higher on Wednesday, tracking gains in global markets and buoyed by investor optimism over a potential policy easing by the Reserve Bank of India in its upcoming meeting on Friday.

The BSE Sensex gained 261 points, or 0.32%, to close at 80,998.25, while the NSE Nifty advanced 78 points, or 0.32%, to settle at 24,620.

The market capitalization of all listed companies on the BSE increased by Rs 1.16 lakh crore to Rs 445.20 lakh crore.

Sector Watch

Shares of Eternal, Bharti Airtel, IndusInd Bank, Tech Mahindra and Reliance Industries were among the top performers on the Sensex, gaining between 1.2% and 3.3%.

Focus remained on the Reserve Bank of India, as its Monetary Policy Committee began a three-day meeting amid growing expectations of a 25-basis-point rate cut, with some market participants even pencilling in a larger 50 bps move. The decision, to be announced Friday, comes after two successive 25 bps cuts in February and April, which brought the repo rate down to 6%.

In the broader market, the Nifty Smallcap 100 rose 0.8%, while the Nifty Midcap 100 added 0.7%.

Among individual stocks, Gland Pharma rose 2.2% after receiving U.S. FDA approval for a blood pressure injection. Garden Reach Shipbuilders rallied 6.5% following a partnership with Norway’s Kongsberg to build a polar research vessel domestically.

Swiggy surged 8.9% after block deals were executed at a premium to Monday’s close. PI Industries climbed 4.2% after Japan’s Kumiai Chemical, a key client, projected higher earnings for the half year.

On the downside, Sun Pharma Advanced Research slumped 20% after its psoriasis drug failed to meet targets in a mid-stage trial. Aditya Birla Fashion and Retail sank 10.7% amid reports that Flipkart exited its 6% stake via block trades.

Expert Views

The domestic market traded in a narrow range with a mildly positive bias, supported by favourable global cues such as strong U.S. job data and signs of easing U.S.-China trade tensions, said Vinod Nair, Head of Research, Geojit Investments.

"Mid-cap and small-cap stocks outperformed, driven by better than estimated earnings growth and moderation in valuation. Investors are now focused on the RBI policy meeting starting today, with expectations of a rate cut and clarity on the future growth & inflation forecast."

The market is likely to remain sideways for another session until the announcement and follow-up commentary on Friday, said Rupak De, Senior Technical Analyst at LKP Securities, adding that "a bearish crossover in the momentum oscillator RSI signals weakening price momentum, suggesting limited movement in the near term. Immediate support is placed at 24,500; a break below this level could lead to further weakness. On the higher side, resistance is seen at 24,750/24,900."

Global Markets

Asian equities advanced on Wednesday, led by technology stocks and a rally in South Korea, even as trade tensions resurfaced with the U.S. imposing higher tariffs on steel and aluminium imports.

South Korea’s Kospi jumped 2.7% after the presidential victory of liberal candidate Lee Jae-myung fueled expectations of increased fiscal stimulus. Japan’s Nikkei 225 rose 0.8%, while Chinese markets posted modest gains, the Hang Seng climbed 0.6% and the Shanghai Composite edged up 0.4%.

European markets opened mostly higher, but investor sentiment remained cautious amid lingering uncertainty over U.S. President Donald Trump’s trade stance and ongoing negotiations with China. The dollar held steady.

Trump added to market jitters, calling Chinese President Xi Jinping “tough” to negotiate with, just days after accusing Beijing of walking back on previous tariff commitments. Washington, meanwhile, pushed trade partners to submit proposals ahead of a Wednesday deadline as the new U.S. duties took effect.

On the macro front, U.S. labour market data offered signs of resilience. A report showed job openings in April exceeded expectations, setting the tone for Friday’s closely watched non-farm payrolls report, which will provide a clearer read on hiring trends in May.

Crude Impact

Oil prices were little changed on Wednesday, as uncertainty over OPEC+’s next move on production was balanced by supply concerns stemming from wildfires in Canada, even as global trade tensions weighed on sentiment.

Brent crude slipped 18 cents, or 0.3%, to $65.45 a barrel by 0905 GMT, while U.S. West Texas Intermediate (WTI) fell 19 cents to $63.22, also down 0.3%.

Rupee vs Dollar

The Indian rupee slipped 0.4% to 85.90 on Wednesday, marking its sixth decline in seven sessions and briefly dipping past the 86 mark against the U.S. dollar. The fall came as traders reduced bullish bets amid steady demand for the greenback.

Meanwhile, the dollar index, which measures the currency’s strength against a basket of six peers, eased 0.12% to 99.11.