Indian equity benchmark -- Nifty -- closed Tuesday’s trading session on record closing high point, supported by a rally in financial and bank stocks. Index made a positive start, as sentiments remained positive with CRISIL Ratings’ report stating that capital goods makers are likely to see revenue rise 9-11% in fiscal 2025, led by continued significant outlays towards railways (including metros), defence, conventional and renewable sectors. This compares with an expected around 13% growth in fiscal 2024. Traders took a note of RBI MPC member Jayanth R Varma’s statement that with retail inflation nearing the RBI’s target of 4 per cent, the monetary policy needs to shift focus on promoting growth. He further said CPI inflation in 2024-25 is projected to be only about 0.5 percentage point above target, and core inflation is extremely benign.
In afternoon session, index magnified its gains to trade on higher note, as sentiments were optimistic with US envoy to India, Eric Garcetti’s statement that the relationship between India and the United States has reached unprecedented heights. Garcetti described the relationship as not just 'additive' but 'multiplicative'. Further, the finance ministry has called a meeting with heads of state-owned banks and financial institutions to review the progress of the government's flagship financial inclusion schemes such as the Jan Dhan Yojana, Jan Suraksha Yojana, and Mudra Yojana ahead of the budget. Finally, index ended at a fresh record closing high point.
