Sensex Rallies Over 300 Points, Nifty Tops 25,100 Mark

At midday, the Sensex advanced over 300 points while the Nifty 50 traded firmly above the 25,100 mark.

Market Update at 12:15 PM: Indian equity markets rallied strongly on Monday, tracking positive global cues and investor optimism following the RBI’s surprise 50 bps rate cut and CRR reduction. At midday, the Sensex advanced over 300 points while the Nifty 50 traded firmly above the 25,100 mark. All 13 key sectoral indices were in the green, led by gains in banking, auto, and NBFC stocks.

Heavyweight financials and private banks climbed around 1 per cent as rate-sensitive sectors responded positively to the RBI’s accommodative policy. Broader indices mirrored this trend, with small- and Mid-Cap indices up nearly 0.7 per cent. Notable gainers included Capri Global (+13 per cent), Five-Star Business Finance (+9.4 per cent), and Bandhan Bank (+6.4 per cent). Shares of gold loan NBFCs like Muthoot Finance and IIFL Finance also surged, boosted by eased gold loan norms.

Bajaj Finance gained over 4 per cent after setting a record date for its stock split and bonus issue. IEX surged 6.5 per cent following strong May trading volumes. Meanwhile, Cochin Shipyard fell nearly 3 per cent on profit booking after a sharp recent rally.

Globally, strong U.S. jobs data and improving U.S.-India trade negotiations underpinned investor sentiment. However, Indian bond yields ticked up slightly as markets digested the RBI’s pivot to a neutral stance.

Market Update at 10:20 AM: Indian equities opened on a positive note Monday, driven by stronger-than-expected U.S. employment data and constructive developments in U.S.-India trade discussions. Support also came from the Reserve Bank of India's recent aggressive monetary policy moves.

As of 10:05 a.m. IST, the Nifty 50 rose by 0.43 per cent to 25,110.55, while the BSE Sensex climbed 0.40 per cent to 82,519.03. Gains were broad-based, with 12 out of 13 major sectoral indices trading higher. Financial stocks, which carry significant weight, moved up by around 0.6 per cent, and PSU banks advanced 1.8 per cent. Meanwhile, Small-Cap and mid-cap indices registered approximately 1 per cent gains each.

Friday's rally of nearly 1 per cent in both benchmark indices was fueled by the RBI’s unexpected 50 basis points cut in the repo rate, alongside a 100 basis points reduction in the cash reserve ratio, a move that boosted market sentiment.

International sentiment was also favorable, as a solid U.S. jobs report eased recession fears. Asian markets reflected this optimism, with the MSCI Asia ex-Japan index up 0.7 per cent, tracking gains on Wall Street.

Indian IT and pharmaceutical companies benefited from improved export prospects, with IT stocks climbing 1.1 per cent during early trade. Meanwhile, hopes of a breakthrough in U.S.-India trade talks before the July 9 deadline added to investor confidence.

On the stock-specific front, Kalpataru Projects surged 4 per cent after securing new orders worth Rs 3,789 crore. Gold loan firms like Manappuram Finance and Muthoot Finance rose by 2 per cent and 2.5 per cent, respectively, following the RBI’s move to ease norms on gold loans.

Eyes are now on the upcoming U.S.-China trade talks scheduled later today, which could further influence market direction.

Pre-Market Update at 8:00 AM: Indian stock markets are expected to open on a firm note today, Monday, June 9. At 7:24 AM, the GIFT Nifty was quoting around 24,173 — about 75 points higher than its previous close, hinting at a positive start.

Asian markets were trading in the green, mirroring Wall Street’s strong performance last week. The S&P 500 crossed the 6,000 mark for the first time since February, while the Dow Jones climbed to its highest level in three months.

Investors this week will be closely monitoring a mix of global developments and domestic indicators, including macroeconomic data, inflation trends, capital inflows, and trade-related policy updates.

On Friday, June 6, both foreign and domestic investors remained net buyers. FIIs picked up equities worth Rs 1,009.71 crore, while DIIs were significantly more active, purchasing stocks worth Rs 9,342.48 crore. Notably, DIIs have been net buyers for 14 consecutive sessions.

Markets reacted strongly to the central bank’s monetary easing, with the repo rate being cut by 50 basis points to 5.50 per cent and the cash reserve ratio (CRR) slashed by 100 basis points to 3 per cent. These measures led to a sharp rally. The Sensex gained 746.95 points to close at 82,188.99, and the Nifty 50 advanced by 252.15 points to finish at 25,003.05.

Asian indices were trading higher on Monday, ahead of scheduled trade talks between the U.S. and China in London. Japan’s Q1 GDP showed a lower-than-expected contraction of 0.2 per cent annualised, versus an earlier estimate of 0.7 per cent.

U.S. stocks ended the week on a strong note, supported by a robust jobs report. The Dow rose 442.88 points to 42,762.62, while the S&P 500 added 61.02 points to settle at 6,000.32. The Nasdaq advanced 231.50 points to 19,529.95, with tech giants such as Tesla, Amazon, Nvidia, Apple, and Alphabet posting gains.

Top-level trade discussions are set to take place in London, with U.S. representatives including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. China’s Vice Premier He Lifeng will lead the Chinese side in talks aimed at reducing trade tensions.

The U.S. added 139,000 jobs in May, slightly exceeding expectations, with the unemployment rate steady at 4.2 per cent.

Gold prices remained mostly flat, trading at Rs 97,170 per 10 grams in the spot market, while futures dipped by 0.8 per cent amid optimism over easing trade tensions.

Crude oil prices showed little movement ahead of the U.S.-China meeting, with Brent at USD 66.41 and WTI at USD 64.52 per barrel.

For today, Chambal Fertilisers, Manappuram Finance and Aditya Birla Fashion Retail continue to remain under the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.