CHENNAI: Indian equity markets ended on a strong note on Thursday, June 5, as expectations of a potential interest rate cut by the Reserve Bank of India (RBI) lifted investor sentiment. Gains in pharmaceutical and realty stocks, coupled with supportive global cues—such as declining US Treasury yields and a weaker dollar—further buoyed market confidence.
After a cautious start, benchmark indices saw sharp gains in the second half of the session. The BSE Sensex closed at 81,442.19, up 443.79 points or 0.55%, after touching an intraday high of 81,911. The NSE Nifty50 advanced 130.7 points, or 0.53%, to settle at 24,750.90.
Broader Markets and Sectoral Performance
Broader indices outperformed the benchmarks today with Nifty Midcap100 gaining 0.65%, and Nifty Smallcap100 rising 0.96%.
Sectorally, Nifty Realty led the rally with a jump of 1.75%, followed by Pharma (+1.28%) and Healthcare (+1.07%). Other sectors including Metal, IT, Energy, Financial Services, and Oil & Gas also ended in the green.
However, Nifty PSU Bank fell 0.58%, along with losses in Media and Auto sectors, indicating selective pressure in rate-sensitive and cyclical pockets.
Key Gainers and Losers
Among the Sensex 30 constituents, Eternal, PowerGrid, ICICI Bank, Reliance Industries, UltraTech Cement, and Sun Pharma led the gains, rising up to 4.5%.
On the downside, IndusInd Bank, Axis Bank, Bajaj Finserv, Bajaj Finance, Kotak Mahindra Bank, and Maruti Suzuki ended lower by up to 1.4%, reflecting some pressure in banking and auto counters.
Volatility and Market Outlook
The India VIX, a gauge of market volatility, declined sharply by 4.2% to settle at 15.08, suggesting reduced near-term market fear and increased investor confidence post-election volatility.
Looking ahead, analysts say, investor focus will now turn to the RBI’s monetary policy meeting, scheduled for later this week. Any dovish commentary or indication of an upcoming rate cut could provide further impetus to the recent uptrend, particularly in rate-sensitive sectors such as real estate and banking.