The Indian stock market is buzzing with optimism as the Nifty 50 index surges past the 24,600 mark, fueled by positive investor sentiment ahead of the Reserve Bank of India’s (RBI) policy meeting. With European markets also kicking off on a high note, it’s a day of green arrows and exciting developments. Let’s dive into what’s driving this momentum, unpack the key sectors, and take a global perspective on what’s shaping the markets today.
A Bright Day for Indian Markets
In the early afternoon trade, the key domestic indices, including the S&P BSE Sensex and Nifty 50, traded with modest but steady gains. The Sensex climbed 223.42 points, a 0.28% uptick, hitting 80,962.05, while the Nifty 50 added 60.75 points, or 0.25%, to reach 24,603.40. The broader market stole the show, with the S&P BSE Mid-Cap index rising 0.44% and the S&P BSE Small-Cap index gaining 0.50%. Market breadth was positive, with 2,072 shares advancing, 1,815 declining, and 171 unchanged on the BSE.
Investor confidence is riding high, largely due to anticipation surrounding the RBI’s monetary policy meeting, which kicked off on June 4, 2025, and will wrap up on June 6. Chaired by Governor Sanjay Malhotra, this meeting has markets on edge, with whispers of a potential rate cut as inflation shows signs of cooling. A rate cut could be a game-changer, boosting liquidity and fueling further market gains. However, traders are keeping a close eye on domestic bond markets, Brent crude oil prices, and global trade developments for additional cues.
Sector Spotlight: Who’s Leading and Who’s Lagging?
The market rally wasn’t uniform across sectors. IT, media, and metal stocks were the stars of the show, driving the upward momentum. Meanwhile, realty and pharma shares took a breather, posting declines. This mixed performance highlights the selective nature of the rally, with investors favoring sectors poised to benefit from global tech trends and domestic growth.
Among the top performers, Eternal surged 2.86%, followed by Bharti Airtel (up 2.11%), Tata Motors (up 1.45%), IndusInd Bank (up 1.31%), and Jio Financial Services (up 1.27%). On the flip side, Trent shed 1.83%, Bajaj Finserv dropped 1.63%, and Shriram Finance, Axis Bank, and Larsen & Toubro also posted losses, ranging from 0.68% to 0.81%.
Stocks in the Spotlight
Several companies made headlines with significant developments. Ashok Leyland dipped slightly by 0.21% despite securing a hefty order to supply 543 BS-VI diesel chassis and fully built buses to the Tamil Nadu State Transport Corporation. Meanwhile, NMDC, the state-owned iron ore miner, fell 1.13% after announcing price cuts for its lump ore and fines, effective from June 4, 2025.
On the brighter side, Indian Energy Exchange (IEX) gained 0.37% after reporting a robust 14% year-on-year growth in monthly electricity volume, reaching 10,946 million units in May 2025. L&T Technology Services climbed 1.33% following a strategic partnership with Tennant Company to develop sustainable industrial cleaning equipment. Servotech Renewable Power System was a standout, rallying 10.69% after bagging a 7.8 MW grid-connected solar rooftop project from the Northeast Frontier Railway’s Rangiya Division.
Maruti Suzuki India rose 0.44% after boosting its solar power capacity by 30 MWp, bringing its total to 79 MWp. Garden Reach Shipbuilders and Engineers (GRSE) soared 4.82% after signing an MoU with Norway’s Kongsberg Oslo to build India’s first indigenous Polar Research Vessel, a milestone for the country’s maritime ambitions.
India’s Economic Pulse: Services and Manufacturing
The Indian economy is showing resilience, with the HSBC India Services PMI Business Activity Index rising to 58.8 in May 2025 from 58.7 in April. This uptick reflects strong demand, new client wins, and increased staffing capacity. The HSBC India Composite PMI Output Index held steady at 59.3, down slightly from 59.7 in April, signaling robust growth despite a slight slowdown in factory production. Services activity, however, picked up pace, underscoring the sector’s role as a key growth driver.
With the NSE’s India VIX dropping 4.62% to 15.79, market volatility is easing, reflecting growing investor confidence. This positive economic backdrop, combined with the RBI’s policy meeting, sets the stage for potential market catalysts in the days ahead.
Global Markets: Europe and Asia Shine
Across the pond, European markets opened higher, buoyed by upbeat PMI data. The HCOB Spain Manufacturing PMI climbed to 50.5 in May 2025 from 48.1 in April, while Italy’s HCOB Composite PMI rose to 52.5 from 52.1. Investors are also watching Poland’s central bank, which is set to announce its monetary policy decision on June 5, 2025.
In Asia, markets were largely upbeat, driven by a tech-led rally on Wall Street. South Korea’s Kospi surged over 2%, hitting its highest level since August 2024, after opposition leader Lee Jae-myung’s presidential win sparked hopes of bold fiscal stimulus and improved trade policies. In Australia, Q1 2025 GDP growth held steady at 1.3% year-on-year, signaling consistent but modest economic momentum.
In the U.S., the S&P 500, Dow, and Nasdaq closed higher, with gains of 0.58%, 0.51%, and 0.81%, respectively. Nvidia continued to dominate headlines, jumping over 2% as investors reacted to its stellar earnings. On the policy front, President Trump doubled tariffs on steel and aluminum imports to 50%, exempting the UK, which will maintain a 25% rate under a prior trade deal. The U.S. labor market also showed strength, with JOLTS job openings reaching 7.39 million, surpassing estimates and setting the stage for Friday’s non-farm payrolls report.
My Take: Why This Matters
In my opinion, the Nifty’s climb above 24,600 is a promising sign for Indian markets, especially with the RBI’s policy meeting on the horizon. The combination of cooling inflation and strong services sector growth could pave the way for a rate cut, which would be a boon for equities. Globally, the positive momentum in Europe and Asia, coupled with a resilient U.S. market, suggests that risk appetite is alive and well. However, traders should stay vigilant, as global trade tensions and commodity price fluctuations could introduce volatility. For now, the IT, media, and metal sectors look like solid bets, while realty and pharma may need time to regain their footing.
What’s Next?
As the RBI’s decision looms, all eyes are on Governor Malhotra’s next move. Will a rate cut spark a broader rally, or will the central bank hold steady? Meanwhile, global developments—such as Poland’s monetary policy, U.S. labor data, and trade policy shifts—will continue to shape market sentiment. For investors, it’s a time to stay informed, diversify, and capitalize on the sectors driving this rally.
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Aamir Ahmad Fateh is a seasoned digital marketer and experienced news writer with over 7 years of expertise in covering political affairs, social issues, technology, sports, and Bollywood. He is the founder and chief editor of 24fnews.com, where he is dedicated to delivering accurate, unbiased, and timely news to a wide audience every day. His sharp insights and journalistic integrity make him a trusted voice in the digital news space.
