Markets Wake with Festive Cheer: GIFT Nifty Surges, US-India Pact Boosts Sentiment as China Cuts LPR

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Indian equities are poised for a buoyant Diwali week start, with GIFT Nifty rising nearly 1 percent. Optimism stems from the upcoming US-India trade pact outlining tariff concessions and manufacturing collaboration, while China’s surprise LPR cut signals global easing. Key corporate moves, from RBL Bank’s foreign stake sale to Lenskart’s IPO, also shaped weekend action.

Indian markets reopened Monday in festive mood, buoyed by upbeat global cues and domestic policy optimism. The GIFT Nifty indicated a strong start near 25,987, gaining about 230 points, tracking Wall Street strength and a major US-India trade breakthrough slated for formal signing later this week. Meanwhile, China’s central bank cut its one-year Loan Prime Rate (LPR) by 10 basis points, adding liquidity support and bolstering global risk appetite.

At home, last Friday’s rally pushed benchmark indices to fresh 52-week highs — Sensex crossed 84,000 and Nifty 25,700 — driven by auto, FMCG, and banking majors. Analysts anticipate the momentum to continue into Muhurat trading on October 21, with a “buy-on-dips” strategy preferred amid steady FII inflows.

Broader Drivers

Trade Diplomacy:

The upcoming US-India trade deal rekindled optimism, with mutual tariff relaxations on key goods — particularly textiles, electronics, and rare earth materials — expected to enhance bilateral trade volumes and manufacturing links.

China’s Policy Easing:

The People’s Bank of China trimmed the Loan Prime Rate to inject stimulus as domestic consumption lags, a move markets interpret as growth-positive for Asia.

RBL Bank’s Big Deal:

Emirates NBD Bank announced plans to acquire a majority stake in RBL Bank through a $3 billion primary infusion — the largest-ever FDI in India’s banking sector — aiming to enhance credit access and digital transformation.

Corporate Buzz:

Lenskart drew investor enthusiasm, with R.K. Damani (DMart) and SBI Mutual Fund expected to invest Rs 200 crore pre-IPO. The eyewear firm plans a Rs 3,700 crore issue combining fresh shares and OFS components.

Technical Sentiment:

Analysts project immediate support for Nifty at 25,500 and resistance around 25,900–26,000, signaling a bullish breakout pattern supported by large-cap strength.

Major Takeaways

GIFT Nifty up 0.9%, signaling strong domestic opening.

India-US trade pact offers sectoral tailwinds ahead of Diwali.

China’s LPR cut boosts global liquidity sentiment.

RBL Bank’s record FDI infusion draws investor buzz.

Festive optimism, strong macros, and low volatility support continued equity resilience.

Sources: Moneycontrol, Economic Times, Financial Express, Business Standard.