🔼 Markets Climb Again as FIIs Return; All Eyes on RBI Rate Cut

📰Daily Market Wrap-Up by Stock Whisperers-05 June 2025

Author

thestock whisperers
June 05, 2025

05-June-2025

📈 Market Overview:

Summary of the Day's Market Performance

Market Overview

  • The Sensex gained 443.79 points (+0.55%) to close at 81,442.04, marking a second consecutive gain.

  • The Nifty rose 130.70 points (+0.53%) to 24,750.90, ending at 24,750.

  • Midcap and Smallcap indices rose 0.4% and 0.6% respectively, reflecting broader market strength.

  • IT, Metal, Pharma, and Realty gained 0.5-1.7%, while PSU Bank, Media, and Auto ended in the red.

💸 Market Transactions:

  • Foreign Institutional Investors (FII): Sold ₹208.47 crore

  • Domestic Institutional Investors (DII): Bought ₹2,382.40 crore

DII buying supported the rally, despite minor FII outflows, as FIIs are turning net buyers overall.

📊📑 Important Observations and Market Sentiments: Editor Special

  • Markets rose for the second day, recovering momentum amid consolidation, despite profit booking at higher levels. A weakening dollar index (at a 3-month low) and volatile US bond yields encouraged FIIs to turn net buyers again, anticipating final US trade negotiations.

  • Strong domestic economic indicators (7.2% Q4 GDP growth, better GST collections) and corporate earnings growth supported a ‘buy-on-dip’ strategy. Investors await central bank decisions, with a 25-bps rate cut expected from the ECB and RBI, potentially boosting sentiment further.

  • Analysts expect Nifty to consolidate between 24,500–24,900, with support at 24,300—focus on RBI’s policy outcome tomorrow.

❓ DO YOU KNOW?

The dollar index fell to 102.5 today, its lowest since March 2025, driven by expectations of a dovish Fed policy, encouraging FII inflows into emerging markets like India.

📰Stock News:

Key Stock Movements and News

  • Top Gainers: Eternal, Dr Reddy’s Labs, Trent, Power Grid Corp, and ICICI Bank

  • Top Losers: IndusInd Bank, Bajaj Finserv, Axis Bank, Tata Consumer, and Bajaj Finance

  • NTPC Green Energy surged after signing a 1,000 MW power purchase agreement, boosting renewable sentiment.

  • Newgen Software gained a $2.5 million order, driving IT sector momentum.

  • Gland Pharma rose after USFDA approval for a generic Angiotensin II Acetate Injection with 180-day exclusivity in the US.

  • Hindustan Aeronautics Ltd (HAL) remained stable after clarifying ongoing GE414 engine production talks with General Electric.

  • Force Motors rose after a 19% YoY increase in May sales, supporting auto sentiment.

  • REC gained as its board approved a ₹1.55 lakh crore fundraising plan, lifting NBFC confidence.

  • Angel One rose after a 32% YoY client base increase, reflecting brokerage sector growth.

  • Escorts Kubota gained traction on a new product launch, supporting auto sentiment.

  • Coal India traded higher after a 34% YoY rise in eco-friendly coal transportation to 102.5 million tonnes in FY25.

  • TVS Motor gained after naming Sudarshan Venu as Chairman, effective August 25.

  • Vedanta was in focus with mixed sentiment as it announced ₹8,500 crore for growth, amid US investigation concerns.

  • Blue Cloud Softech Solutions hit an upper circuit as its board met to discuss a preferential securities issue after a 51.98% YoY Q4 profit surge.

  • ITC Hotels rose on the launch of ‘Yura’, targeting India’s dessert market.

Your Weekly Stock Markets Rundown: 🌀 Markets in a Holding Pattern: All Eyes on RBI, Trade Talks & Global Turmoil

June 2-6, 2025

The week of June 2-6, 2025, will be shaped by the RBI’s policy decision, India-US trade talks, and global trade developments. With Sensex and Nifty expected to trade within 81,000–82,500 and 24,700–25,100, respectively, investors remain cautiously optimistic, supported by India’s 7.4% Q4 FY25 GDP growth and FII inflows. However, US tariff concerns and bond yields may limit gains, driving mid-week volatility. Banking, infrastructure, and renewable energy sectors offer opportunities, while a stock-specific approach is advised to navigate the uncertainty.

👀Stocks to Focus:

  • NTPC Green Energy: Renewable sector momentum to watch.

  • Gland Pharma: USFDA approval impact to monitor.

  • Vedanta: Growth plans vs. US probe concerns to observe.

📝Summary:

Indian markets rose 0.5%, with Nifty at 24,750, marking a second straight gain amid FII buying and global optimism. IT, Pharma, and Realty led gains, supported by DII inflows and strong domestic macros (7.2% Q4 GDP). Investors eye RBI and ECB rate cuts—expect consolidation, focus on policy cues!

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Disclaimer: The Stock Whisperers is a media platform providing educational and informational content related to the stock market. We do not offer investment advice, stock recommendations, or tips. Readers should consult a SEBI-registered advisor before making any investment decisions.