Stock Market Opens Higher: Nifty At 24,690, Sensex Up 224 Points; All Eyes On RBI MPC
Stock Market Update 5 June 2025: Markets are now keenly focused on the central bank, which is widely expected to announce a 25 basis point rate cut on Friday, a move that could influence rate-sensitive sectors.
Indian equity benchmarks, the Sensex and Nifty, began Thursday on a positive footing, rebounding further after halting a three-day losing streak in the previous session. However, overall market sentiment remained cautious, weighed down by weak global cues. Volatility is likely to stay elevated throughout the session due to the weekly options expiry. Notably, India VIX continued its downward trajectory, signaling a mild reduction in investor anxiety.
The Sensex climbed 224.70 points (0.28 per cent) to 81,222.95, while the Nifty advanced 72.05 points (0.29 per cent) to reach 24,692.25. Market breadth favored the bulls, with 2,029 stocks in the green, 632 in the red, and 130 trading flat.
Broader Market Update
Broader indices outpaced the frontline benchmarks, underscoring ongoing strength in smaller stocks. The Nifty Smallcap index rose 0.7 per cent, and the Nifty Midcap index added 0.3 per cent, extending their recent outperformance trend.
Sectorial Update
Among sectoral indices, Nifty Pharma led the pack, driven by strong performances from Sun Pharma, Divi’s Laboratories, Cipla, and Dr. Reddy’s Laboratories. On the other hand, Nifty FMCG lagged behind, weighed down by losses in key stocks such as Tata Consumer and Nestlé India.
From a broader macroeconomic standpoint, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted the combined impact of geopolitical events and key economic indicators. He noted the steep decline in the US ISM PMI data, viewing it as a clear sign of a marked slowdown in the American economy.
Vijayakumar added, “The US 10-year bond yield has fallen to 4.36 percent, and with the US economy softening, yields may continue to decline. This could support emerging markets like India over the medium term, but for now, rising uncertainty is likely to keep markets rangebound. Both geopolitical and economic news are likely to weigh on markets in the near-term. A serious concern is a potential Russian retaliation to the recent Ukraine attacks on Russian planes. How serious this will be and what will be its consequences are unknown factors now. The major economic news is the sharp dip in the US ISM PMI data. This indicates that the US economy is slowing down sharply."
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