Benchmark indices witnessed volatile trading throughout the session.
Markets closed higher on Thursday, with the Sensex gaining 443.79 points to settle at 81,442.04 and the Nifty advancing 130.70 points to 24,750.90, as investors positioned themselves ahead of the Reserve Bank of India’s monetary policy committee decision scheduled for Friday.
The benchmark indices witnessed volatile trading throughout the session, with the Nifty opening flat at 24,691 before slipping to an intraday low of 24,613 in early trade. However, a strong recovery emerged, pushing the index to a high of 24,899 before profit-taking in the latter half trimmed gains. The Sensex opened at 81,196.08 and maintained its upward trajectory to close with a gain of 0.55 per cent.
Market breadth remained positive with 2,257 stocks advancing against 1,725 declining on the BSE, while 109 stocks hit 52-week highs compared to 36 touching 52-week lows. The broader markets outperformed frontline indices, with Nifty Midcap 100 gaining 0.65 per cent and Nifty Small cap 100 advancing 0.96 per cent.
Among Nifty 50 constituents, Eternal topped the gainers list with a surge of 4.53 per cent, followed by Trent at 3.15 per cent, Dr Reddy’s Laboratories at 3.05 per cent, Power Grid Corporation at 2.01 per cent, and ICICI Bank at 1.77 per cent. On the losing side, IndusInd Bank declined 1.39 per cent, Tata Consumer Products fell 1.07 per cent, Axis Bank dropped 0.94 per cent, Bajaj Finance declined 0.69 per cent, and Bajaj Finserv lost 0.57 per cent.
Sectoral performance remained mixed with realty stocks emerging as top performers, surging 1.75 per cent, while pharma stocks posted solid gains of 1.28 per cent. Infrastructure, information technology, and metals indices also closed in green territory with gains ranging from 0.4 to 0.7 per cent. However, auto, consumer durables, private banks, and PSU banks witnessed marginal declines.
“The index remained volatile within a range throughout the day, failing to establish a clear directional move as range-bound trading continued. However, a golden crossover is visible on the daily chart, indicating the potential for a strong uptrend in the short term,” said Rupak De, Senior Technical Analyst at LKP Securities.
Foreign institutional investors turned net buyers after recent selloffs, with easing US Treasury yields and a weakening US dollar providing support to Indian equities. The India VIX cooled off by over 4 per cent, indicating reduced hedging demand and improving investor confidence.
Ajit Mishra, Senior Vice President Research at Religare Broking, noted that “the continued outperformance of rate-sensitive sectors such as banking, realty, and auto appears to be factoring in a 25 bps rate cut. However, the RBI’s commentary will be crucial, given the mixed global cues amid a favourable domestic environment.”
The Indian rupee strengthened against the dollar, supported by strong FII inflows and positive domestic market sentiment. The currency traded in a range as market participants await key US economic data including Non-Farm Payrolls scheduled for release.
In commodities, gold prices traded higher supported by dollar weakness and safe-haven demand, with MCX gold gaining ₹500 to trade above ₹98,450. Silver marked a historic move, breaching the $35 mark on Comex for the first time in 12 years, with MCX silver surging over ₹3,000 to cross ₹1,04,000.
“Markets are attentively awaiting upcoming central bank decisions, with a 25-bps rate cut anticipated from both the ECB and RBI,” said Vinod Nair, Head of Research at Geojit Investments Limited.
Looking ahead, market participants expect volatility to continue as the RBI monetary policy outcome could provide directional catalyst for Indian equities. Technical analysts suggest the Nifty faces support at 24,400-24,500 levels while resistance is placed near 25,050-25,080 zone.
Published on June 5, 2025
