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Key Points

Indian stock markets continued their positive momentum for the second consecutive day, driven by potential India-US trade negotiations. The Sensex climbed 443.79 points, closing at 81,442.04, while Nifty rose 130.70 points to 24,750.90. Technical analysts suggest cautious optimism ahead of the upcoming RBI monetary policy decision. Investors are closely monitoring global market dynamics and potential economic policy shifts.

Key Points: Sensex Climbs 443 Points on US Trade Deal Hopes

  • Sensex rises 0.55% tracking positive global market sentiment
  • US trade deal expectations boost investor confidence
  • Foreign investors show cautious market approach
  • RBI monetary policy decision awaited on Friday
2 min read

Indian stocks remain in green for second day; Sensex up 443 points

Indian stocks rally for second consecutive day amid positive global cues and potential India-US trade developments

"Easing US Treasury yields and a weakening US dollar provided support to Indian equities - Sundar Kewat, Ashika Stock Broking"

New Delhi, June 5

Indian stock indices remained in the green for the second straight day on continued hopes that the India-US trade deal is on the anvil, as Trump's commerce secretary recently indicated.

Firm US stock indices also lent support to Indian stock benchmarks.

Today, Sensex closed at 81,442.04 per cent, up 443.79 points or 0.55 per cent, while Nifty closed at 24,750.90 points, up 130.70 points or 0.53 per cent. Nifty IT, Nifty metal, and Nifty pharma were the top movers among the sectoral indices. Among losers were Nifty Media, Nifty PSU Bank, and Nifty Private Bank.

Global gold prices were also in the green today. At the time of filing this report, per ounce gold was quoted at USD 3,416, up 0.5 per cent.

Going ahead, investors now await further updates on India-US trade deal negotiations and the RBI monetary policy outcome on Friday.

"Overall, the index traded in a volatile range as participants remained cautious ahead of the RBI's monetary policy decision scheduled for tomorrow," said Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity - Ashika Stock Broking, part of Ashika Group.

"Easing US Treasury yields and a weakening US dollar provided some support to Indian equities, although global sentiment remains cautious amid persistent US-China trade tensions," Kewat added.

Another good news for the financial markets is that foreign portfolio investors (FPIs) have turned net sellers in Indian stock markets for the second straight month in May. FPIs had fuelled the latest bull run in the stock market after a sharp slump.

"Buy on dips continues to be the ideal strategy now. Rate sensitives will be preferred in view of the expected rate cut by the MPC on 8th June," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

Indian stock markets outperformed global markets over the past few weeks, as volatility continued to reign in global markets over possible forthcoming US reciprocal tariffs. A comfortable inflation number in India also somewhat supported the domestic equity indices.

In 2024, Sensex and Nifty accumulated a growth of about 9-10 per cent each. In 2023, Sensex and Nifty gained 16-17 per cent, on a cumulative basis. In 2022, they gained a mere 3 per cent each.

- ANI

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Reader Comments

R
Rahul K.
Great to see Sensex crossing 81k! 💹 The US trade deal optimism is clearly boosting investor confidence. Though I hope RBI doesn't disappoint tomorrow with their policy decision. Fingers crossed for a rate cut! #BullRun
P
Priya M.
While the growth looks impressive, I'm concerned about retail investors jumping in at peak levels. Remember what happened in 2008? Markets can turn volatile anytime with US-China tensions still brewing. Invest wisely, not emotionally.
A
Arjun S.
IT and Pharma sectors leading the rally shows our strength in these areas. But why are banking stocks lagging? Is there something we retail investors don't know? RBI policy will be crucial for banking stocks tomorrow.
S
Sanjana P.
The consistent growth since 2022 (3% → 16% → 9% YTD) shows Indian markets are maturing well. But I wish small investors like me had better access to market education. Too much reliance on 'buy on dips' advice without understanding fundamentals.
V
Vikram J.
FPIs turning net sellers is a red flag we shouldn't ignore. When foreign money leaves, markets can correct sharply. Our domestic institutions need to step up support. Long-term investors should stay put, but traders be cautious!
N
Neha R.
Gold also up along with stocks - unusual combination! 😊 Shows investors are hedging bets. For middle class families like ours, some gold investment along with SIPs in index funds seems the perfect balanced approach in current scenario.

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