FX.co ★ Indian Stocks Extend Rebound

Indian equities closed sharply higher on Tuesday, extending the rebound from Friday’s two-year low, supported by renewed strength in banking and industrial stocks ahead of the Reserve Bank of India’s policy decision tomorrow. The S&P BSE Sensex gained 1% to 73,068, while the NSE Nifty 50 advanced 1% to 22,776. Kotak Mahindra Bank and Axis Bank climbed 3.6% and 2%, respectively, leading financials higher as global sovereign bond markets stabilized briefly after last week’s selloff. The sector has been under pressure in recent weeks, with rising debt levels and elevated interest rates weighing on the outlook for corporate credit growth in India. In line with this backdrop, the RBI is widely expected to raise its policy rate by 25 basis points tomorrow. Elsewhere, Trent jumped 12% after the apparel retailer forecast a 23% year-on-year increase in standalone revenue for the September quarter. In contrast, technology shares finished lower.