Tue Jan 28 12:38:14 UTC 2025: ## Indian Stock Market Rebounds on RBI Liquidity Boost, Despite Global Tech Downturn

**Mumbai, India** – India’s stock market staged a strong comeback on Tuesday, ending a four-session losing streak with the BSE Sensex and NSE Nifty surging over 1% each. This rally was driven primarily by a surge in banking stocks, particularly private lenders, following the Reserve Bank of India’s (RBI) announcement of a ₹1.5 lakh crore liquidity injection plan.

The Bank Nifty index jumped over 2% on the news. The RBI’s plan includes purchasing ₹60,000 crore in government securities and a $5 billion USD/INR swap auction. While experts like Murthy Nagarajan, Head-Fixed Income at Tata Asset Management, see these measures as a positive step, they believe further action, potentially including a CRR cut, may be necessary to address the existing liquidity deficit.

Despite the overall market positivity, the broader market showed a mixed performance, with midcap and smallcap indices falling 0.1% and 1.3%, respectively. Individual stock performance varied widely within the Sensex, with Axis Bank, HDFC Bank, and ICICI Bank among the top gainers, while Sun Pharma and ITC lagged.

This positive performance in India contrasted sharply with the global market, where Asian markets traded mostly lower, and Wall Street closed weakly. A significant drop in US tech stocks, particularly Nvidia (down nearly 17%), followed the emergence of a low-cost AI model from China’s DeepSeek, triggering concerns about the future of AI hardware spending. This global tech downturn impacted Indian chipmaking stocks, with some experiencing significant falls. Arindam Mandal, Head of Global Equities at Marcellus Investment Managers, highlighted DeepSeek’s potential impact on the semiconductor sector.

While the RBI’s intervention provided a much-needed boost to investor confidence, the underlying global tech uncertainty and the mixed performance within the Indian market suggest further volatility may be on the horizon.

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