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

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