How Did the Stock Market Fare Today Amid Positive Global Signals?
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Synopsis
On June 4, the Indian stock market closed positively, driven by strong US job data and ongoing speculation about a potential RBI rate cut. With indices showing upward momentum, traders are eagerly awaiting the RBI's next move, making this an intriguing time for investors.
Key Takeaways
- Domestic indices finished in the green.
- Strong US job data supported global markets.
- Speculation surrounds RBI's rate cut decision.
- Midcap and smallcap indices outperformed largecaps.
- Rupee depreciated ahead of RBI policy announcement.
Mumbai, June 4 (NationPress) The domestic benchmark indices finished in the green on Wednesday, buoyed by favorable global cues such as robust US job statistics. This comes as the ongoing RBI Monetary Policy Committee (MPC) meeting stirs speculation regarding a possible rate cut.
The Sensex climbed by 260.74 points, translating to a 0.32 percent increase, closing at 80,998.25. Similarly, the Nifty saw a rise of 77.70 points, also 0.32 percent, ending at 24,620.20.
Both midcap and smallcap indices outperformed largecap stocks, with the Nifty Midcap 100 index surging by 407.55 points (0.71 percent) to reach 57,924.65, and the Nifty Smallcap 100 index rising by 142.95 points (0.79 percent) to close at 18,257.10.
On the sectoral front, indices for auto, IT, PSU bank, financial services, pharma, FMCG, metal, media, energy, and private companies ended positively, while the realty index faced declines.
According to Rupak De from LKP Securities, the Nifty shows a relatively lackluster sentiment as traders await the RBI’s decision on rates.
The market is expected to remain sideways for another session until the RBI announcement and subsequent commentary on Friday.
“Immediate support is identified at 24,500; a drop below this level may trigger further weakness, while resistance is noted at 24,750 and 24,900,” De mentioned.
Vikram Kasat, Head of Advisory at PL Capital, stated that the markets opened strongly, with benchmark indices rising amid global tailwinds and anticipation regarding the RBI’s policy.
“The ongoing RBI MPC meeting adds a layer of speculation, particularly as market participants are divided over the potential extent of a rate cut. Meanwhile, positive US labor data has supported global equities,” he highlighted.
With the Nifty maintaining above 24,500, the short-term sentiment appears encouraging. Nevertheless, clarity from the RBI and evolving global macroeconomic factors will dictate the next phase of the rally.
In related news, the rupee depreciated by 25 paise to 85.87, nearing the 86.00 mark, as foreign investors continued to sell ahead of the RBI policy statement. Analysts anticipate the rupee will trade within a range of 85.50 to 86.40.
Point of View
The current market dynamics reflect a cautious optimism among investors. With the RBI's upcoming decisions holding significant weight, the focus remains on both domestic and global economic indicators that will ultimately guide market trends.
NationPress
08/06/2025
Frequently Asked Questions
What factors influenced the stock market today?
The stock market was influenced by positive global cues, particularly strong US job data, and ongoing speculation regarding a potential rate cut from the RBI.
How did the major indices perform?
The Sensex rose by 260.74 points to close at 80,998.25, while the Nifty increased by 77.70 points, ending at 24,620.20.
What sectors performed well?
Sectors such as auto, IT, PSU banks, and pharma showed positive performance, while the realty sector closed in the red.
What is the expected market trend?
The market is likely to remain sideways until the RBI announcement, with immediate support at 24,500 and resistance at 24,750/24,900.
What is the current status of the rupee?
The rupee traded weaker at 85.87, with expectations of it fluctuating between 85.50 and 86.40.
