Market Wrap: June 5, 2025 | Sensex Soars 444 pts, Nifty Holds 24,700 as RBI Rate Cut Hopes Fuel Rally

 

Key Highlights

1. Benchmarks Scale New Highs
• Sensex: Jumped 444 pts (0.55%) to close at 81,442 (Intraday high: 81,911)
• Nifty: Gained 131 pts (0.53%) to settle at 24,751
• Top Gainers: Eternal (+4.5%), Power Grid, ICICI Bank, RIL
• Laggers: IndusInd Bank, Axis Bank, Bajaj twins
2. Driving the Rally
• Fresh FII inflows amid global market strength
• Rate cut hopes: RBI expected to slash repo rate by 25 bps to 5.75% on June 6
• Early monsoon boost (105% of LPA) easing inflation concerns (CPI at 3.2%)

 

Sectoral Spotlight

Sector	Performance	Key Movers
Banking	+0.8%	ICICI Bank, SBI
Energy	+1.2%	RIL, Adani Ports
FMCG	+0.6%	ITC, HUL
Pharma	+0.9%	Sun Pharma

 

Expert Insights

Praveen Dwarakanath (Hedged.in):

• "Nifty’s doji candle at 24,500 signals strong support. ADX shows bullish bias, but direction hinges on RBI policy tomorrow."

Dr. Manoranjan Sharma (Infomerics):

• "Normal monsoon may sustain rural demand and keep CPI benign. A 25 bps cut could revive capex cycles."

 

Market Nuggets

• Gas Prices: GIXI rose 19% YoY to ₹1,016/MMBtu (European demand spike)
• IGX Volumes: Fell 5% YoY due to lower power sector demand
• F&O Cues: Max OI at 24,500 (Put) & 25,000 (Call) suggests range-bound trade

 

Monsoon Watch

• Impact: Early rains curb power demand (231GW vs 260GW expected)
• Farm Boost: 54% employment reliant on agriculture; good rains may lift rural stocks

 

• RBI Policy (June 6): 25 bps cut priced in; guidance on growth-inflation balance key
• Global Cues: US jobs data, ECB meeting to influence FPI flows

Trade Tip: Accumulate banking & infra stocks ahead of RBI; avoid aggressive bets till Nifty clears 25,100 resistance.

 

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