Banks, Metals Drive Markets Higher as India Exits Seven-Session Slump
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Summary: The Sensex and Nifty climb, driven by bank and metal stock earnings following the easing of lending norms and a weak dollar.
After enduring its longest losing streak in months, India’s stock market caught a breather as financials and metal sectors took the lead. The Nifty 50 nudged up 0.18% to 24,677.9, while the Sensex gained 0.14%, climbing to 80,469.39 by midmorning.
Bank shares, especially public sector banks, rose after the Reserve Bank of India loosened certain lending norms—measures intended to improve credit flow without compromising oversight.
Meanwhile, metals jumped about 1%, benefiting from a softer U.S. dollar that makes raw materials more attractive globally.
Other sectors also joined the uptrend: small-cap stocks were up 0.5%, and mid-caps added around 0.2%. Eleven out of 16 major sector indices were in the green.
A notable mover was Coforge, which gained ~2.6% after it received an “outperform” rating by CLSA, helping lift parts of the IT index.
But despite today’s bounce, investors remain cautious. Foreign institutional investor outflows totaled more than $2.5 billion this month, creating a headwind. Additionally, the next RBI monetary policy decision is looming significantly, with many economists expecting rates to remain stable.
In simp, the rally is caused by buyers seeking relief and a shift in sectors. So the long-term gains may rely on whether the country's global signals and policies offer further support, though.
