RBI's Liquidity Boost Lifts Indian Stock Markets Amid Global Tech Selloff

Indian stock markets rise on Tuesday as RBI's liquidity injection of Rs 1.5 lakh crores bolsters investor confidence. Nifty 50 and BSE Sensex showed significant gains. However, global tech stocks faced a downturn due to competitive pressures from China's AI sector, affecting major companies like Nvidia.

India's stock markets opened higher on Tuesday, propelled by the Reserve Bank of India's liquidity injection of Rs 1.5 lakh crores, which has lifted investor sentiment significantly. The Nifty 50 index started at 22,960.45, up by 131.30 points or 0.58%, while the BSE Sensex opened 292.83 points up, at 75,659 points.

In contrast, a strong selloff impacted AI and semiconductor stocks globally on Monday, with Nvidia, a leading player in the AI sector, dipping by as much as 10%. This downturn was sparked by fears surrounding rising competition from Chinese AI start-up DeepSeek. Market expert Ajay Bagga commented to ANI on the RBI's liquidity measure, stating, "It greatly boosts sentiment today, paving the way for potential rate cuts imminently. This is facilitating a partial rebound in market indices."

Sectorally, Nifty Bank advanced over 1%, whereas Nifty Pharma declined by 1.14%. Sectors excluding pharma and FMCG gained. "Despite our bearish long-term stock market outlook, today's low sentiments hint at a brief recovery. Conversely, real estate appears capped without significant price hikes anticipated soon," said Amit Goel of Value 360.

As leading firms including Bajaj Auto and Hindustan Zinc prepare to release Q3 earnings, analytical focus aligns on Nifty's potential short-term movements: support valued between 22,725 and 22,787, and resistance posed by yesterday's gap-down opening at 23,050, as per Axis Securities' Akshay Chinchalkar.

Across Asia, Japan's Nikkei 225 dropped 0.57%, while Hong Kong's Hang Seng increased by 0.22%. Markets in Taiwan and South Korea did not trade today.

(With inputs from agencies.)