India’s equity benchmarks extended gains on Tuesday, January 23, zooming to new highs after the International Monetary Fund released an encouraging forecast. The IMF noted that the Indian economy is set to regain its status as the world’s fastest growing major economy in 2018-19. India’s GDP is expected to expand by 7.4% in 2018 and 7.8% in 2019. At the same time, the IMF upgraded its global growth forecast by 0.2 pp to 3.9% in 2018 and 2019. Recapping the benchmarks, the Nifty 50 advanced 1.07% to 11,083.70, and the BSE Sensex added 0.96% to 36,139.98. By 10:50 GMT, the USD/INR currency pair dipped 0.10% to 63.825, while EUR/INR eased 0.27% to 78.1299. The 10-year government bond yield stood at 7.439%. Banking names outpaced the broader market, with State Bank of India and Yes Bank rising 3.93% and 1.15%, respectively. Market cap of Infosys and Reliance Industries jumped 2.26% and 1.09%. Metal producers stood out among the best performers, with Hindalco Industries and Vedanta surging 3.88% and 5.21%, respectively. The daily chart shows that the BSE Sensex has repeatedly broken through the upper end of Bollinger Bands, while the Slow Stochastic Oscillator and the RSI have been in overbought territory for a long time. As a result, upside potential is limited.