Sensex gains 333 pts; Nifty above 25,100 level; private bank shares rally

The frontline indices traded with modest gains in mid-morning trade, buoyed by positive global sentiment and reinforced by the Reserve Bank of India's firm monetary policy stance. The Nifty traded above the 25,100 level. Private bank shares extended gains for the second consecutive trading session.

At 11:29 IST, the barometer index, the S&P BSE Sensex, added 332.89 points or 0.41% to 82,531.41. The Nifty 50 index rose 113.55 points or 0.45% to 25,115.45.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.94% and the S&P BSE Small-Cap index added 1.01%.

The market breadth was strong. On the BSE, 2,730 shares rose and 1,198 shares fell. A total of 193 shares were unchanged.

Economy:

India?s forex reserves dropped by $1.237 billion to $691.485 billion for the week ended May 30, the RBI said on Friday.

For the week ended May 30, foreign currency assets?a major component of the reserves?fell $1.952 billion to $584 billion, according to the RBI data.

The gold reserves increased by $723 million to $84.305 billion during the week, the RBI said.

The Special Drawing Rights (SDRs) were down by $2 million to $18.569 billion, the apex bank said.

India?s reserve position with the IMF was also down by $6 million at $4.395 billion in the reporting week, the apex bank data showed.

Buzzing Index:

The Nifty Private Bank index rose 1.24% to 28,177.45. The index rose 3.05% in the two consecutive trading sessions.

Bandhan Bank (up 6.77%), RBL Bank (up 5.05%), Kotak Mahindra Bank (up 2.94%), Axis Bank (up 1.91%), Federal Bank (up 1.79%), IDFC First Bank (up 1.51%), IndusInd Bank (up 1.32%), Yes Bank (up 1.01%), and HDFC Bank (up 0.23%) advanced.

On the other hand, ICICI Bank (down 0.81%) edged lower.

Stocks in Spotlight:

Capri Global Capital surged 10.14% to Rs 167.30 after the company launched the autopay facility for gold loans, eliminating the need for manual payments or branch visits.

OCCL surged 16.24% to Rs 118.98 after the Indian government imposed anti-dumping duties on imports of insoluble sulfur originating from China and Japan.

Global Markets:

Asian market moved higher on Monday as investors awaited trade discussions between the United States and China and reviewed the latest economic data from China and Japan.

China's consumer price index declined 0.1% year-on-year in May, unchanged from the previous month, according to government data released Monday. The producer price index fell 3.3% year-on-year, marking the sharpest decline in 22 months and following a 2.7% decrease in April.

Japan's gross domestic product contracted 0.2% year-on-year in the January?March quarter. While better than the preliminary estimate of a 0.7% decline, it reflected a reversal from 2.4% growth in the previous quarter.

Reports indicated that China granted temporary approvals for rare earth exports, and Boeing resumed commercial aircraft deliveries to China.

In the United States, equities closed higher on Friday following the release of nonfarm payroll data and news of upcoming trade talks. The US economy added 139,000 jobs in May, down from April?s revised figure of 147,000. March payrolls were also revised lower to 120,000.

Average hourly earnings increased by 0.1% on a monthly basis in May, resulting in a 0.4% annual pace, reflecting ongoing wage pressures.

President Donald Trump stated that Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer would meet Chinese officials in London on Monday to discuss trade matters.

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