Sensex Surges 443 Points, Nifty Tops 24,750 Ahead of RBI Policy Decision

Market Performance

Indian stock markets extended gains on June 5, with the Sensex rising 443.94 points (0.55%) to 81,442.19 and the Nifty climbing 141.10 points (0.57%) to 24,761.30.

• Advancing Stocks: 2,023
• Declining Stocks: 1,479
• Unchanged Stocks: 121

The India VIX, a volatility gauge, dropped 4.2% to 15.08, signaling reduced market uncertainty.

Sectoral Highlights

• Realty (+1.9%) led the rally, followed by Pharma (+1.27%).
• Infra, IT, and Metal sectors rose between 0.38% and 0.58%.
• Broader markets outperformed, with Nifty Smallcap 100 (+0.9%) and Midcap 100 (+0.5%) gaining.

Key Drivers of the Rally

1. RBI Rate Cut Expectations

Investors are anticipating a 25-basis-point rate cut at the upcoming Reserve Bank of India Monetary Policy Committee meeting. With CPI inflation under control, analysts expect further easing in 2025.

2. Global Factors Supporting Sentiment

• The US 10-year bond yield fell to 4.36%, boosting the appeal of emerging markets like India.
• The rupee strengthened by 23 paise to 85.68/USD, aiding market confidence.

3. Strong Domestic Fundamentals

• India's growth outlook remains robust, supported by expectations of an above-normal monsoon.
• FIIs turned buyers, injecting ₹1,076 Crore into Indian equities.

Top Stock Performers

1. Eternal (Formerly Zomato) – Up 4%

• Gains followed Morgan Stanley's bullish stance, citing leadership in food delivery and quick commerce.
• Blinkit (Zomato's quick commerce arm) is nearing Zomato in terms of weekly active users, according to CLSA.

2. Dr. Reddy's Labs – Surged 4%

• The pharma giant announced a biosimilar partnership with Alvotech for Keytruda, a global cancer treatment.

3. Brainbees Solutions (FirstCry Parent) – Jumped 12%

• Despite a Q4 FY25 net loss of ₹111.5 Crore, the stock saw strong buying interest.

Market Outlook

While the Nifty holds above 24,475, analysts see room for further upside. A break above 24,850 could push the index toward 25,000, though resistance is expected.

Key Levels to Watch

• Support: 24,475 (Nifty)
• Resistance: 24,850 (Nifty)

Summary

• The Sensex and Nifty rose by 0.5%+, led by pharma, real estate, and mid-cap stocks.
• Hopes for an RBI rate cut and global cues boosted sentiment.
• Eternal, Dr. Reddy's, and Brainbees were top gainers.

Market breadth is positive, with over 2,000 stocks advancing.