Stock Market Sees Positive Start Despite IT Sell-Off

The Indian stock market is set for a positive opening today, according to the GIFT Nifty index. This upbeat sentiment comes despite Friday’s sell-off in the IT sector, which saw key indices decline by up to 2.5 percent.

Market analysts attribute the positive start to expectations of a rate cut by the Reserve Bank of India (RBI), which could boost market sentiments and fuel further gains. Additionally, strong earnings from major companies such as Tata Motors and Hindustan Unilever have contributed to the optimistic outlook.

However, concerns remain about the impact of the IT sector’s sell-off on the broader market. The decline in IT stocks has led to a 2.5 percent drop in the Nifty IT index, with Infosys and Wipro being among the biggest losers.

Despite these concerns, many analysts believe that the Nifty will hold above the psychological level of 24,000, driven by strong buying interest from institutional investors. The key levels to watch out for today are 23,950 and 24,250, with a break above the latter seen as a bullish signal.

Market participants will also be keeping an eye on the RBI’s upcoming policy meeting, scheduled for June 27, where a rate cut is widely expected. A reduction in interest rates could further boost market sentiments and lead to increased buying activity.

Source: original report.