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EQUITY
Sensex, Nifty extend gains for second consecutive day
Jun-05-2025

Indian equity benchmarks continued their gaining momentum for the second consecutive day and ended with gains of over half percent on Thursday driven by buying in blue-chip stocks Eternal, Trent and Power Grid Corporation amid fresh foreign fund inflows and firm global market trends.  

Some of the important factors in today’s trade:

RBI policy decision in focus: The Reserve Bank's rate-setting panel started its three-day brainstorming on monetary policy as expectations are high of a 25 bps or even a jumbo 50 bps rate cut to fuel economic growth amid uncertainties created by Trump's tariff moves. The decision of the Monetary Policy Committee (MPC), headed by Reserve Bank Governor Sanjay Malhotra, will be announced on Friday.

Finance Minister to review state of the economy at FSDC meet: Finance Minister Nirmala Sitharaman is all set to review the state of the economy at a meeting of the Financial Stability and Development Council (FSDC) on June 10, amid global uncertainties. All financial sector regulators, including RBI Governor Sanjay Malhotra, will attend this 29th meeting of the high-level panel.

India can help French businesses become more competitive in manufacturing: Commerce and Industry Minister Piyush Goyal has said that India can help French businesses become more competitive in manufacturing to tap global markets. He said this could be a shared mission where France and India collaborate closely to strengthen bilateral economic ties. 

Rupee rises marginally against US Dollar: Indian rupee snapped its two-day losing streak and closed marginally higher against the US dollar, supported by positive domestic equities and a rise in Asian currencies. Overnight softening of crude oil prices favoured the rupee. However, a strong US dollar index capped sharp gains.

Supportive global cues: European markets were trading higher ahead of an expected rate cut from the European Central Bank later in the day. Asian markets settled mostly higher on Thursday as weak U.S. economic data reinforced speculation that the Federal Reserve will cut interest rates at least twice this year. 

Finally, the BSE Sensex rose 443.79 points or 0.55% to 81,442.04 and the CNX Nifty was up by 130.70 points or 0.53% to 24,750.90.

The BSE Sensex touched high and low of 81,911.13 and 80,983.73 respectively. There were 18 stocks advancing against 12 stocks declining on the index. 

The broader indices ended in green; the BSE Mid cap index rose 0.39%, while Small cap index was up by 0.65%.

The top gaining sectoral indices on the BSE were Realty up by 1.79%, Healthcare up by 0.88%, Consumer Disc up by 0.73%, Industrials up by 0.60% and Basic Materials up by 0.51%, while Auto down by 0.05% and Oil & Gas down by 0.02% were the top losing indices on BSE.

The top gainers on the Sensex were Eternal up by 4.50%, Trent up by 2.97%, Power Grid Corporation up by 1.96%, ICICI Bank up by 1.65% and Reliance Industries up by 1.37%. On the flip side, Axis Bank down by 1.06%, Bajaj Finserv down by 0.63%, Bajaj Finance down by 0.57%, Maruti Suzuki down by 0.34% and Kotak Mahindra Bank down by 0.33% were the top losers.

Meanwhile, External Affairs Minister S Jaishankar has said India and Australia have witnessed an ‘enormous deepening and diversification’ of bilateral cooperation in the last five years, and reaffirmed commitment to look at areas such as critical minerals, cyber, technology, and space as further domains of collaboration.

Talking an event at the Australian High Commission to mark the fifth anniversary of India-Australia Comprehensive Strategic Partnership, he said the reason behind this ‘dosti’ has actually been the ‘strong leadership that we have seen from both countries’. He said ‘here we are - not just with a transformed relationship’, but actually marking five years of the India-Australia Comprehensive Strategic Partnership.’ He said ‘I think these have been five great years in our ties. Many more to come.’

He said ‘So, I am here today to reaffirm, in the presence of the Deputy Prime Minister of Australian, a strong commitment to take this relationship to still greater heights, to look at areas like critical minerals, cyber, technology, space, sports as further domains of collaboration, and to work on mechanisms - most of all the Quad, but in the East Asia Summit platforms, the Indian Ocean Rim Association, the United Nations, even the trilateral grouping that we have with France.’

The CNX Nifty traded in a range of 24,899.85 and 24,613.10. There were 34 stocks advancing against 15 stocks declining, while 1 stock remained unchanged on the index.   

The top gainers on Nifty were Eternal up by 4.53%, Trent up by 3.15%, Dr. Reddy's Lab up by 3.05%, Power Grid Corporation up by 2.01% and ICICI Bank up by 1.77%. On the flip side, Indusind Bank down by 1.39%, Tata Consumer Product down by 1.07%, Axis Bank down by 0.94%, Bajaj Finance down by 0.69% and Bajaj Finserv down by 0.57% were the top losers.

European markets were trading higher; UK’s FTSE 100 increased 23.49 points or 0.27% to 8,824.78, France’s CAC rose 30.32 points or 0.39% to 7,834.99 and Germany’s DAX gained 74.4 points or 0.31% to 24,350.88.

Asian markets settled mostly higher on Thursday amid bets that the Federal Reserve will deliver two quarter-point cuts by year-end, in October and December. Meanwhile, investors were awaiting key US non-farm payrolls data on Friday for direction. However, some gains were limited by rising trade tensions ahead of a long-awaited call between US President Donald Trump and Chinese President Xi Jinping this week. Hong Kong and Chinese markets gained, led by tech and artificial intelligence shares. Seoul shares rose as the new government vowed to restart talks with North Korea and beef up a trilateral partnership with the US and Japan. Although, Japanese shares declined as Japan's 30-year bond auction saw the weakest demand since 2023, ramping up pressure on the government to adjust issuance.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,384.10

7.90

0.23

Hang Seng

23,906.97

252.94

1.06

Jakarta Composite

7,113.42

44.38

0.63

KLSE Composite

1,518.12

10.15

0.67

Nikkei 225

37,554.49

-192.96

-0.51

Straits Times

3,917.69

13.81

0.35

KOSPI Composite

2,812.05

41.21

1.47

Taiwan Weighted

21,674.43

56.34

0.26
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