Sensex jumps 444 pts, Nifty ends above 24,750; Trent climbs 3%

The domestic equity indices closed with strong gains today, extending their rally for a second straight session. The uptrend was driven by positive global cues and the return of foreign fund inflows after recent outflows. Traders also positioned themselves ahead of the RBI?s monetary policy decision due on Friday (6 June). Volatility remained high due to the weekly expiry of the Nifty F&O series. The Nifty ended near the 24,750 level, led by strength in pharma and healthcare stocks.

The S&P BSE Sensex advanced 443.79 points or 0.55% to 81,442.04. The Nifty 50 index jumped 130.70 points or 0.53% to 24,750.90. In the two straight sessions, the Sensex and Nifty jumped 0.87% and 0.85%, respectively.

Trent (up 2.97%), ICICI Bank (up 1.65%) and Reliance Industries (up 1.37%) boosted the indices.

In the broader market, the S&P BSE Mid-Cap index rose 0.39% and the S&P BSE Small-Cap index added 0.65%.

The market breadth was positive. On the BSE, 2,257 shares rose and 1,725 shares fell. A total of 147 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, tanked 4.20% to 15.08.

The Reserve Bank of India (RBI) began its monetary policy meeting on Wednesday, 4 June 2025, with the proceedings set to conclude on Friday, 6 June 2025. The meeting is being chaired by Governor Sanjay Malhotra. With inflation showing signs of easing, market participants are speculating about the possibility of a rate cut.

Numbers to Track:

The yield on India's 10-year benchmark federal paper fell 0.14% to 6.03 from the previous close of 6.211.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.8000 compared with its close of 85.8700 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement rose 0.32% to Rs 98,890.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.05% to 98.78.

The United States 10-year bond yield shed 0.30% to 4.349.

In the commodities market, Brent crude for August 2025 settlement rose 20 cents or 0.31% to $65.06 a barrel.

Global Markets:

European markets advanced on Thursday as investors awaited a rate cut from the European Central Bank (ECB). The central bank is widely expected to trim interest rates by 25 basis points.

German factory orders rose 0.6% in April from the previous month, preliminary data showed on Thursday. This was largely due to a significant increase in the manufacturing of data processing equipment, electrical goods and optical products.

Most Asian stocks ended higher, with the South Korean market extending gains from the previous session. Investor attention remained on a potential call between U.S. President Donald Trump and Chinese President Xi Jinping, which the White House indicated could take place this week. Optimism surrounding the potential dialogue contributed to gains on Wall Street earlier in the week.

The Caixin China services purchasing managers' index came in at 51.1 in May, rising from 50.7 in April and remaining above the 50-mark, which separates an expansion from a contraction.

China's services activity in May climbed from the month before, buoyed by rising tourism activity. However, new export orders slowed at a slightly lower pace, weighed by uncertainty from the U.S. tariffs.

On Wednesday, U.S. markets closed mixed. The Dow Jones Industrial Average declined by 0.22%, while the S&P 500 inched up 0.01% and the Nasdaq Composite gained 0.32%, supported by strength in technology stocks.

Meanwhile, private sector hiring in the U.S. fell to its lowest level in over two years. Data from payroll processor ADP showed that payrolls increased by only 37,000 in May, compared to a revised 60,000 in April. The report has heightened concerns about the impact of trade-related uncertainty on the U.S. economy. The data precedes the release of the official nonfarm payrolls report for May, scheduled for Friday, which investors now expect to show further weakness.

Stocks in Spotlight:

Dr. Reddy's Laboratories rallied 3.01% after the company announced a collaboration with Iceland-based Alvotech to co-develop and commercialize a biosimilar to Keytruda (pembrolizumab) for global markets.

Rama Steel Tubes (RSTL) soared 12.91% after the company announced a strategic investment in the renewable energy sector through a 10% equity stake in a 225 MW solar power project under the Government of India's PM-KUSUM scheme. Over the 25-year PPA term, the company expects total revenues of around Rs 270.28 crore from this investment.

Deccan Gold Mines surged 9.72% after its its associate company, Geomysore Services (India), received the Consent to Operate (CTO) for the Jonnagiri Gold Project from the Andhra Pradesh Pollution Control Board (APPCB).

Railtel Corporation gained 4.24% after the company secured an order worth Rs 274.40 crore from the Motor Vehicles Department, Maharashtra.

Garden Reach Shipbuilders & Engineers (GRSE) rose 1.43% after the company announced the signing of memorandum of intent (MoI) and memorandum of understandings (MoUs) with various entities in Norway. It has signed a MoI with Carsten Rehder Schiffsmakler und Reederei GmbH & Co. KG, Germany, for the construction of four follow-on 7,500 DWT multi-purpose vessels. It has signed a memorandum of understanding (MoU) with Aries marine, a Dubai based, established and independent engineering and design firm for offshore platform and vessel design. On the same day, the company has also inked MoU with a global engine manufacturer.

Angel One added 4.54% after the firm announced that its client base jumped 34.1% to 31.95 million in May 2025, compared with 23.83 million in May 2024.

Power Grid Corporation of India added 1.96% after the company said that it has acquired MEL Power Transmission (MPTL), a special-purpose vehicle, for an aggregate value of Rs 8.53 crore.

Force Motors rallied 3.53% after the company?s domestic sales jumped 24.46% to 3,002 units in May 2025, as against 2,412 units sold in May 2024.

CESC declined 1.21%. The company said that its subsidiary, Purvah Green Power, has signed a framework agreement with Envision Energy India for the supply and commissioning of 1 GW wind turbine generators (WTGs).

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