RBI Fuels Optimism: Indian Markets Eye New Highs Amid Mixed Signals

• RBI cut interest rates, raised FY26 GDP forecast to 7.3%, and lowered inflation projections, bringing optimism to Indian markets.
• Nifty 50 was flat, but Bank Nifty gained for the sixth week; Nifty Smallcap 100 declined for the third week, showing market divergence.
• IT sector surged 3.5%; Consumer Durables, Defence, Media, and Capital Markets declined ~2%.
• Technical indicators suggest the broad market selloff, especially in small-caps, may be nearing exhaustion, hinting at a potential rebound.
• US markets rose on rate cut hopes, but manufacturing data remained weak; Federal Reserve meeting (Dec 9-10) is a key global focus.

Why It Matters: It offers crucial insights for navigating Indian market trends and investment decisions.