India’s stock markets maintained their upward trajectory on Wednesday, with the key domestic indices trading with modest gains in afternoon trade, sustaining upward momentum as investor sentiment remained positive ahead of the upcoming RBI policy meeting. The Nifty 50 index climbed above the 24,600 mark, reflecting cautious optimism among investors.
Market Overview
As of 1:25 PM IST, the S&P BSE Sensex rose by 223.42 points (0.28%) to reach 80,962.05, while the Nifty 50 advanced 60.75 points (0.25%) to 24,603.40. The broader market outperformed the frontline indices, with the S&P BSE Mid-Cap index increasing by 0.44% and the S&P BSE Small-Cap index gaining 0.50%. Market breadth was positive, with 2,072 stocks advancing, 1,815 declining, and 171 remaining unchanged on the BSE.
The NSE’s India VIX, which measures market volatility expectations, declined by 4.62% to 15.79, indicating reduced market volatility.
Sectoral Performance
Sector-wise, IT, media, and metal stocks led the rally, while realty and pharma sectors faced declines.
RBI Policy Meeting in Focus
The Reserve Bank of India’s Monetary Policy Committee commenced its three-day meeting today, with the policy decision scheduled for June 6. With inflation showing signs of moderation, market participants are speculating on the possibility of a rate cut. According to a Reuters poll, 53 out of 61 economists anticipate a 25 basis point cut in the repo rate, bringing it down to 5.75% . This potential rate cut aims to stimulate economic growth by making borrowing more affordable, thereby encouraging consumer spending and investmentÂ
Economic Indicators
The HSBC India Services PMI Business Activity Index rose to 58.8 in May from 58.7 in April, indicating robust demand conditions and increased staffing capacity. However, the HSBC India Composite PMI Output Index slightly declined to 59.3 in May from 59.7 in April, reflecting softer growth in factory production despite a quicker pace in services activity.
Top Gainers and Losers
Gainers:
-
Eternal: +2.86%
-
Bharti Airtel: +2.11%
-
Tata Motors: +1.45%
-
IndusInd Bank: +1.31%
-
Jio Financial Services: +1.27%
Losers:
-
Trent: -1.83%
-
Bajaj Finserv: -1.63%
-
Shriram Finance: -0.81%
-
Axis Bank: -0.69%
-
Larsen & Toubro: -0.68%
Stocks in Spotlight
-
Ashok Leyland: The company announced an order for supplying 543 units of BS-VI diesel chassis and fully built buses to the Tamil Nadu State Transport Corporation.
-
NMDC: The state-owned iron ore miner reduced prices for its lump ore and fines, effective June 4, 2025.
-
Indian Energy Exchange (IEX): Reported a monthly electricity volume of 10,946 million units in May 2025, marking a 14% year-on-year growth.
-
L&T Technology Services: Signed a strategic agreement with Tennant Company to accelerate the development of sustainable new products.
-
Servotech Renewable Power System: Secured a work order from the Rangiya Division of the Northeast Frontier Railway for a 7.8 MW grid-connected solar rooftop project, leading to a 10.69% surge in its stock.
-
Maruti Suzuki India: Expanded its solar power capacity by 30 MWp, bringing the total installed capacity to 79 MWp across locations.
-
Garden Reach Shipbuilders and Engineers (GRSE): The company signed an MoU with Norway’s Kongsberg Oslo to build India’s first indigenous Polar Research Vessel, resulting in a 4.82% increase in its stock.
Global Market Trends
European markets opened higher, buoyed by positive economic indicators. The HCOB Spain Manufacturing PMI climbed to 50.5 in May from 48.1 in April, while Italy’s HCOB Composite PMI rose to 52.5 in May from 52.1 in April.
In Asia, markets experienced gains following a tech-led rally on Wall Street. South Korea’s Kospi surged over 2%, reaching its highest level since August 2024, amid expectations of fiscal stimulus following the presidential election.
In the U.S., major indices closed higher, with the S&P 500 up 0.58%, the Dow Jones Industrial Average gaining 0.51%, and the Nasdaq Composite rising 0.81%. Nvidia shares jumped more than 2% as investors continued to digest the company’s strong earnings report.
On the policy front, President Trump approved higher tariffs, doubling duties on steel and aluminum imports to 50%, aiming to deter dumping and support U.S. producers. Notably, the UK was granted an exemption, maintaining the previous 25% rate under a trade deal signed in May.
Labor market data also impressed, with the latest JOLTS report showing job openings at 7.39 million, surpassing estimates and indicating a robust labor market.
My Opinion:
The Indian stock market’s resilience, as evidenced by the Nifty 50 surpassing 24,600, reflects investor confidence ahead of the RBI’s policy decision. The potential rate cut, amid moderating inflation, could further stimulate economic growth. However, global economic uncertainties, including trade tensions and policy shifts, warrant cautious optimism.
Disclaimer: No Business Standard Journalist was involved in creation of this content
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.
