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

Overview

• Market Range: The Indian stock market is expected to trade within a tight range, with the Sensex between 81,000–82,500 and Nifty between 24,700–25,100, supported at 24,500 and facing resistance at 25,000.

• Key Events: The RBI’s monetary policy decision on June 6 and India-US trade talks on June 5-6 are pivotal, alongside US-China trade developments that could sway global sentiment.

• Economic Strength: India’s Q4 FY25 GDP growth of 7.4% and strong FII inflows (₹6,065.78 crore on April 15) bolster confidence, though global uncertainties temper gains.

• Global Headwinds: US tariff concerns under Trump’s policies and rising US bond yields may cap upside, with mid-week volatility expected around key events.

• Sectoral Focus: Banking (SBI, HDFC Bank), infrastructure (L&T), and renewable energy (Suzlon) are likely to see buying interest, while IT and FMCG may face pressure.

📅 Weekly Events Calendar

Weekly Events Calendar

💡 DO YOU KNOW?

India’s Manufacturing PMI rose to 58.3 in May (preliminary), marking the fastest expansion since June 2024, with the final reading due on Monday, potentially signaling continued industrial strength.

Important Observations and Market Sentiments: Editor Special

• RBI Rate Cut Hopes: Posts on X indicate market expectations of a 25 bps rate cut to 5.75% on June 6, which could boost banking and rate-sensitive sectors if realized.

• Trade Talks Impact: India-US trade talks may strengthen export sectors like textiles and electronics if a favorable deal emerges, though US-China trade tensions could create volatility.

• Global Indicators: The ECB’s expected rate cut to 2.00% on June 5 may support global liquidity, but US jobless claims and tariff developments could counter optimism.

• Sectoral Divergence: Banking and infrastructure remain resilient due to domestic growth, while IT faces headwinds from global tech uncertainty, as seen in recent market trends.

• Market Technicals: Nifty’s support at 24,500 and resistance at 25,000 suggest a range-bound week, with a breakout above 25,000 needed for bullish momentum.

👀Stocks to Focus:

• Banking: SBI and HDFC Bank for potential gains if the RBI cuts rates.

• Infrastructure: L&T, benefiting from government capex and strong order books.

• Renewable Energy: Suzlon, aligning with India’s sustainable energy push.

• Defensive Plays: Reliance Industries for stability amid volatility.

📜 Summary:

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.

🚀 Stay cautious, watch key events, and trade wisely!

😊Thank you for subscribing to our Weekly Stock Markets Rundown. Stay tuned for next Saturday.

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.