May saw a remarkable surge in Indian equities, with two key sectors leading the charge: defence and microcaps. The Nifty 50 index experienced a solid 1.71% increase, but it was the Nifty Microcap 250 that truly stole the show, skyrocketing by a phenomenal 12.10%!

This impressive growth wasn’t just a one-month wonder. The momentum carried over into June, significantly boosted by the Reserve Bank of India’s (RBI) unexpected rate cut. This surprise move injected fresh optimism into the market, particularly benefiting sectors sensitive to interest rate changes.

The combination of strong performance in specific sectors and the positive impact of the RBI’s decision paints a vibrant picture of growth and investor confidence in the Indian market. This rally signals a potentially exciting period for investors keeping a close eye on these key indicators.