Daijiworld Media Network - Mumbai
Mumbai, Jun 5: Indian equity markets closed higher on Thursday as investors adopted a cautious optimism ahead of the Reserve Bank of India’s Monetary Policy Committee (MPC) decision on the repo rate, scheduled to be announced on Friday.
The Sensex surged 443.79 points, or 0.55%, to finish at 81,442.04, while the Nifty 50 advanced 130.70 points, or 0.53%, closing at 24,750.90.
Market sentiment improved across the board, with midcaps and smallcaps joining the rally. The Nifty Midcap 100 index added 378.35 points, or 0.65%, to end at 58,303, and the Nifty Smallcap 100 index gained 175.50 points, or 0.96%, closing at 18,432.60.
Sectorally, IT, financial services, pharmaceuticals, FMCG, metals, realty, and energy stocks finished in the green, while autos, PSU banks, media, and private banks slipped into negative territory.
Sundar Kewat from Ashika Institutional Equity noted that the Nifty traded in a volatile range as traders awaited the RBI’s decision. He highlighted that easing US Treasury yields and a weakening US dollar provided a supportive backdrop, although global market sentiment remained cautious due to ongoing US-China trade tensions.
Analysts pointed to a “golden crossover” on the daily chart, suggesting a potential short-term rally.
“Support at 24,500 remains strong,” said Rupak De from LKP Securities. “Unless the Nifty breaks below this level, a serious correction is unlikely. A steady or even sharp recovery appears possible in the near term.”
On the currency front, the Indian rupee strengthened, buoyed by a rebound in risk appetite and sustained foreign fund inflows. The rupee also gained alongside other regional currencies.
Dilip Parmar of HDFC Securities commented, “Markets are pricing in a 0.25% rate cut from the RBI on Friday, supported by stable inflation data. The rupee’s path will depend on the RBI’s policy stance and any liquidity measures it introduces.”
All eyes now turn to RBI Governor Sanjay Malhotra’s announcement on Friday, which could set the tone for Indian markets in the days ahead.