Both the Stock Indices, Nifty and Sensex opened on a positive note today, i.e. on June 6, 2024. Following an upbeat sentiment in the global market, today’s market was spurred by expectations of interest rate cuts by the Federal Reserve in September. At the opening bell, the Sensex was up 289.8 points or 0.39%, at 74,672.04. The Nifty on the other hand surged 96.05 points or 0.42%, at 22,716.40.
Bullish Momentum in the market
The bullish momentum in the Indian Stock Market continued throughout the trading session. Both the Nifty and Sensex maintained their upward trajectory. At 10 A.M., Sensex was up by 407 points or 0.55%, at 74,789.24 and Nifty surged by 122.85 points or 0.54%, at 22,743.20. Global market gave a series of positive signals and hopes of rate cuts by the Federal Reserve.
Sensex and Nifty Hold Strong
As the day ended, the Indian stock market continued to hold onto its pattern, with the Sensex and Nifty maintaining their bullish run. On the closing bell, the Sensex increased by 375.21 points or 0.51%, at 74,876.65, while the Nifty surged by 118.35 points or 0.52%, at 22,738.70.
Sectoral Indices in the Green
Market Sectors displayed a mixed performance during the closing hours. Barring FMCG and Healthcare, all other sectoral indices were trading in the green. Realty, PSU Bank, Media, and Oil & Gas were the top gaining sectors. The market sentiment was positive and was supported by sustained buying interest.
The broader market was also up. The BSE Midcap gained 2.31% and the BSE Smallcap surged by 2.91%.
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Gainers and Losers
16 stocks from Nifty 50 were trading in the red. Hindustan Unilever, Nestle India, Hero MotoCorp, Divi’s Laboratories, and Hindalco Industries were among the top draggers. On the other hand, Coal India, NTPC, SBI, ONGC, and Shriram Finance were the top pullers. Whereas in Sensex, 10 out of 30 stocks were trading in the red, with Hindustan Unilever, Nestle India, Sun Pharma, Asian Paints, and Kotak Mahindra Bank leading the draggers.
Global Stocks Rally
Stocks in the Global Market were booming today. Many indices were on the verge of hitting an all-time high. The Euro strengthened ahead of the European Central Bank’s anticipated interest rate cut. Wall Street’s S&P 500 and Nasdaq set new records. Nvidia’s surge in the market, propelling it to become the world’s second-most valuable company.
Central Bank Actions
The European Central Bank was widely expected to announce its first interest rate cut in nearly five years. This was reflecting its efforts to stimulate economic growth. The Bank of Canada already made a move to cut rates, while the U.S. Federal Reserve is expected to hold off until September. Amid economic uncertainties, the Bank of Japan’s meeting will focus on rate decisions.
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Market Reactions
Bond markets reacted to central bank actions. Germany’s 2-year government bond yields were dipping. U.S. Treasury yields remained at nearly two-month lows. Expectations of Fed rate cuts drove investors to price nearly two full 25 basis point cuts for this year. The commodities saw mixed movements in the market. With Brent crude futures and spot gold rising, the market was reacting with volatility.
As the global markets remain optimistic amid central bank actions and economic data, Indian stocks continue their bullish run. This was supported by positive cues and investor confidence. However, concerns were about the political development, impacting market stability. The attention was more on key economic indicators and central bank decisions. Market participants remain vigilant amidst evolving global dynamics.
About Author
This article has been written by Mr Radhesh Tarang Shah, who is a third-year management student at Institute of Management, Nirma University. He has a passion for writing articles and poems. He has experience as a financial analyst, author, news writer, marketer and social worker.
