FX.co ★ Indian Stocks Rise for 2nd Day

On Monday, India's BSE Sensex rose by 638 points, or 0.75%, to settle at 85,567.5, marking two consecutive days of gains. This upward trend was driven by positive investor sentiment fueled by foreign capital inflows and anticipation of further Federal Reserve rate cuts next year. Over the past three sessions, foreign portfolio investors acquired Indian shares amounting to INR 37.76 billion, reducing December's overall outflows to INR 120.2 billion. Optimism was further bolstered by the minutes from the December RBI meeting, where policymakers emphasized risks to growth and potential deflationary pressures, suggesting the possibility of more rate cuts. Within the stock market, Trent led the rally with a 3.9% increase, followed by Infosys, which climbed 2.8%, Bharti Airtel at 2.3%, Tech Mahindra with 1.7%, and Tata Motors DVR also at 1.7%. Other significant gainers, each rising over 1%, included Maruti, Sun Pharma, BEL, HCL Tech, and TCS. Conversely, the only stocks experiencing declines were SBI with a 0.6% drop, Kotak Mahindra Bank down 0.4%, and both L&T and Bajaj Finance down 0.1%.