The stock market opened higher on Thursday, with Sensex and Nifty extending their gains from the last sesion. The rally was mainly driven by buying in pharma and healthcare stocks, along with support from positive global cues.
As of 9:44 am, the S&P BSE Sensex had jumped 404.22 points to reach 81,402.47. The NSE Nifty50 was also up by 117.60 points at 24,749.
PHARMA, HEALTHCARE LEAD THE GAINS
Most sectors started the day in green. Nifty Pharma was the top performer, rising 1.05%, followed by Nifty Healthcare which gained 0.94%. The broader markets also joined the rally, with the Nifty Midcap 100 up by 0.34% and Nifty Smallcap rising 0.74%.
Other sectors that saw gains included Nifty Oil & Gas (up 0.58%), Auto (up 0.47%), Metal (up 0.46%), Media (up 0.40%), IT (up 0.29%), Financial Services (up 0.26%), Realty (up 0.21%), Private Bank (up 0.19%), Consumer Durables (up 0.17%), and FMCG (up 0.10%).
The only sector to open lower was Nifty PSU Bank, which slipped by 0.22%.
The India VIX, which measures market volatility, dropped by 3.41%, indicating lower fear levels among traders and investors.
POSITIVE GLOBAL CUES SUPPORT MARKET SENTIMENT
Indian markets also tracked gains in other Asian markets. The MSCI Asia ex-Japan index rose 0.5%, led by Hong Kong and South Korean shares. South Korea’s market hit an 11-month high following post-election optimism.
Global support came from lower US Treasury yields and a weaker US dollar. These changes are usually positive for emerging markets like India as they attract foreign investors.
INVESTOR SENTIMENT BOOSTED BY RATE CUT HOPES
Market mood was also lifted by growing hopes that the Reserve Bank of India (RBI) might cut interest rates during its ongoing Monetary Policy Committee (MPC) meeting, which started on June 4 and will end on June 6.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, “Markets are showing strength with investors buying on every dip. Global cues and some easing in geopolitical tensions are helping the recovery. The fact that the market bounced back from around 23,600 levels on Nifty is a good sign. Ahead of the RBI policy decision, investors can watch banking and financial services stocks.”
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, said that most market watchers are expecting a 25 basis point cut in the repo rate.
“Easing inflation could support this move, and if the cut happens, it would benefit sectors like banking, auto and real estate. Stocks like HDFC Bank, Kotak Bank, M&M, Eicher Motors and Lodha are some of the names that traders may watch closely,” he added.
Mishra also pointed out that the RBI’s comments on future rate decisions will be important. Investors will look for signals on how the central bank views the economy, especially at a time when monsoon conditions seem good, but global trade still faces uncertainty.
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(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
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