Why Did Sensex and Nifty Open Higher Today?
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Synopsis
On June 4, 2023, Indian frontline indices opened positively, influenced by favorable global cues. The Sensex and Nifty saw significant gains, with buying activity noted in midcap and smallcap stocks, indicating robust market sentiment. Analysts foresee further rate cuts by the RBI, enhancing investor confidence.
Key Takeaways
- Sensex and Nifty opened higher amid positive global cues.
- Buying activity in midcap and smallcap stocks was notable.
- Analysts expect more RBI rate cuts in the future.
- Institutional investors showed strong buying trends, especially DIIs.
- Positive market fundamentals are encouraging retail investor confidence.
Mumbai, June 4 (NationPress) The Indian benchmark indices commenced trading on a positive note on Wednesday, buoyed by favorable signals from global markets.
As of 9:26 am, the Sensex surged by 155.81 points or 0.19 percent, reaching 80,893.32, while the Nifty increased by 60 points or 0.25 percent, standing at 24,602.80.
There was noticeable buying activity in midcap and smallcap stocks, with the Nifty midcap 100 index climbing by 309.30 points or 0.54 percent to 57,826.40, and the Nifty smallcap 100 index rising by 88.40 points or 0.49 percent to 18,210.75.
Among the gainers in the Sensex pack were Bharti Airtel, Eternal (Zomato), Tata Motors, M&M, IndusInd Bank, Maruti Suzuki, Tech Mahindra, Bajaj Finance, ITC, HUL, and Infosys. Conversely, TCS, Ultratech Cement, ICICI Bank, Titan, and Sun Pharma were among the top losers.
“Post the initial flat opening, the Nifty may find support at 24,500, followed by 24,400 and 24,300. On the upside, 24,800 is anticipated to act as immediate resistance, succeeded by 24,900 and 25,000,” commented Mandar Bhojane, Equity Research Analyst at Choice Broking.
Most Asian markets were trading positively, with Tokyo, Shanghai, Hong Kong, Seoul, and Jakarta leading the charge. The US markets also closed higher on Tuesday.
Vikram Kasat from PL Capital remarked, “Positive vibes are in the air, as for the first time since February, the Nasdaq has turned positive for the year amid a broader market rally.”
On the institutional front, foreign institutional investors (FIIs) continued their sell-off for the third day in a row on June 3, offloading equities worth Rs 2,853.83 crore. In contrast, domestic institutional investors (DIIs) remained net buyers for the 11th consecutive session, with investments amounting to Rs 5,907.97 crore.
Analysts noted that with CPI inflation in India remaining manageable, the RBI has ample room for rate cuts, potentially two more by 2025. This, while it may pressure banks' margins, positions leading private banks for returns of 12 to 15 percent over the next year.
“The robust fundamentals supporting the market include India's strengthening macros and consistent mutual fund inflows, especially SIP inflows, which are steady and rising. This indicates the maturing of the Indian retail investor,” stated Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
Point of View
It's imperative to recognize the resilience of the Indian markets amidst global fluctuations. The current bullish trend, bolstered by strong fundamentals and institutional support, reflects growing investor confidence. This positive outlook is promising for the future of the Indian economy.
NationPress
08/06/2025
Frequently Asked Questions
What factors influenced the rise in Sensex and Nifty?
The rise in Sensex and Nifty was influenced by positive cues from global markets and institutional buying activity, particularly from domestic investors.
How did midcap and smallcap indices perform?
Midcap and smallcap indices experienced significant gains, indicating strong investor interest in these segments.
What are analysts predicting for the RBI's interest rate policy?
Analysts predict that the RBI may implement further rate cuts, providing additional support to the market.
Which stocks were the top gainers and losers today?
Top gainers included Bharti Airtel, Tata Motors, and Infosys, while TCS and Ultratech Cement were among the top losers.
What is the outlook for the Indian economy?
The outlook for the Indian economy remains positive, supported by strong fundamentals and consistent inflows into mutual funds.
