Risk-on rally: Defence and microcaps drive May surge in Indian markets; RBI rate cut extends momentum into June

Indian markets had a stellar May, with defense stocks and microcap companies leading the charge—think smaller, high-growth firms and companies tied to national security. The Nifty 50, a benchmark for big players, climbed nearly 2%, but the real action was in microcaps, which skyrocketed over 12%. Just as investors were riding high, the Reserve Bank of India (RBI) threw in a surprise rate cut in June, giving sectors like banking and real estate an extra push.