Momentum in small, midcaps to continue

The Indian benchmark index closed on a positive note almost every day during the week, and in fact, the closing prices were higher than the previous days, denoting confidence in our markets.

This positive momentum was fueled by a rally in global markets on the expectation of a rate cut by the US Fed. Additionally, domestic data points like GST collections surging past Rs 1.9 lakh crore, impressive auto sales numbers, and a fall in crude oil prices supported the bullish sentiment in the market.

This week, we also had the important RBI MPC meeting. As expected, the governor kept Repo rates unchanged at 6.50% for the 11th consecutive time and also reduced the cash reserve ratio (CRR) by 50 bps.