India's BSE Sensex concluded Thursday with a gain of approximately 0.5%, building on the previous day's upward momentum. This optimism is primarily fueled by expectations of a potential interest rate reduction by the Reserve Bank of India on Friday. Analysts anticipate that the central bank will lower its key repo rate by 25 basis points, bringing it to 5.75%, amid easing inflation and the risks of slowed growth due to ongoing global challenges. The sentiment was also bolstered by fresh inflows of foreign capital into Indian equities.
In terms of individual stocks, Eternal led the advance with a 4.7% increase, as Morgan Stanley maintained a positive outlook based on the company's strong delivery performance and robust financial health. Power Grid followed with a 2% rise, supported by substantial quarterly profits and favorable analyst ratings highlighting solid returns and consistent revenue growth. Reliance saw a 1.4% uptick, buoyed by a positive earnings forecast from JPMorgan, which projects improved earnings growth over the next two years. Conversely, IndusInd Bank fell over 1%, hampered by lingering concerns over accounting irregularities and disappointing quarterly results.
