In a dramatic response to the RBI’s unexpected actions, Indian markets soared to new heights on Friday. Here’s a closer look at the pivotal factors poised to influence D-Street action in the upcoming week.

A Fresh Breeze of Optimism

Indian markets closed on a high note as investors reacted positively to the Reserve Bank of India’s surprise 50 basis point rate cut. This decisive move, aimed at reviving economic growth, saw the BSE Sensex leap by 747 points to 82,188, and the NSE Nifty climb 252 points to 25,003. The mood on Dalal Street was noticeably buoyant, with analysts expressing optimism about the economic boost these measures could deliver.

Analyst Takes: Bright Hopes and Cautious Moves

Vinod Nair from Geojit Financial Services lauded the RBI’s aggressive growth-push policy, which not only included a substantial rate cut but also a reduction in the Cash Reserve Ratio (CRR). “This move should ensure swift transmission of lower rates, reinforcing RBI’s commitment to economic growth,” noted Nair. He cautioned, however, that the slight demand lull as indicated by the steady GDP forecast for FY26 should not be overlooked.

Global Markets Show Confidence

The uplifting sentiment wasn’t limited to Indian markets. U.S. stocks closed higher on Friday, lifted by a stronger-than-expected jobs report and rebounding Tesla shares, while European markets maintained their upward trajectory, backed by easing trade tension worries. As stated in The Economic Times, these developments keep providing global investors with fresh optimism.

Technical Insights: Eyes on Resistance Levels

Rupak De, a Senior Technical Analyst, indicated that the Nifty’s close above 25,000 after several sessions is heralding increased optimism. “A rally like this could lead to an upward breakout,” said De, adding that the next resistance level stands at 25,150. A shift above could pave the way towards 25,350, whereas sliding below 24,850 might trigger profit booking.

Stocks Under the Spotlight

Investors took notice of various stocks exhibiting significant turnover and volume. Cochin Shipyard topped the turnover chart on the BSE, while Vodafone Idea led in trading volume on the NSE. Amidst this flurry, stocks like Godrej Industries and ICICI Lombard drew strong buying interest, indicating potential growth in these sectors.

A Mixed Sentiment in the Air

Despite the overall positive developments, 43 stocks dipped to their 52-week lows, reflecting some bearish undertones amidst broader market gains. Interestingly, the sentiment on the BSE was largely neutral as analysis showed an almost balanced scale of advancing and declining stocks.

The fuel added by the RBI’s surprise initiatives is set to keep markets and investors attentive as they steer through new challenges and opportunities in the coming week.