On Wednesday, 4 June 2025, Indian equity markets staged a strong comeback, ending a three-day losing streak to close in positive territory. The recovery was largely fueled by positive global cues, which helped restore investor confidence, and robust domestic institutional buying. The market's attention is now firmly fixed on the ongoing Reserve Bank of India's Monetary Policy Committee (MPC) meeting.
Table of Contents
- Key Indices Performance
- FII/DII Institutional Activity
- IPO Market Highlights
- Top Gainers
- Top Losers
- Global and Economic Cues
- Outlook for 5–7 June 2025
- Final Takeaway
- TheSensexgained 261 points (0.32%), closing at 80,998.25, after touching an intraday high of 81,087.29.
- The Nifty 50 increased by 78 points (0.32%), ending the day at 24,620.20, holding above the crucial 24,600 level.
Wrap-up: Both benchmark indices showed resilience, recovering from recent declines. Broader market indices also performed well, indicating a healthy appetite for wider market participation.
On 3 June 2025: (Note: FII/DII data is typically released with a one-day lag)
- Foreign Institutional Investors (FIIs) were net sellers, offloading shares worth ₹2,853.83 crore. They also showed significant selling in the F&O market (index futures worth ₹2,547 crore and index options worth ₹23,343 crore).
- Domestic Institutional Investors (DIIs) remained strong net buyers, injecting ₹5,907.97 crore into the Indian equity market.
Wrap-up: Despite continued outflows from FIIs, robust DII buying provided a crucial cushion, highlighting the growing strength of domestic capital in stabilizing the market.
New Listings (4 June 2025):
- Scoda Tubes Ltd made a strong debut on the NSE, listing at ₹140 per share and quickly climbing to ₹144.90.
Wrap-up: Scoda Tubes Ltd made an impressive debut, listing at a premium and edging higher in early trade. The strong listing reflects positive investor sentiment specifically for this offering.
Strong performances were seen from several stocks, particularly in the railway and defence sectors:
- Ircon International Ltd: Surged 14.00% to ₹221.10 due to new order wins (e.g., KAVACH system contract) and government infrastructure push.
- Rail Vikas Nigam Ltd (RVNL): Rallied 6.86% to ₹431.45 driven by strong financials, a robust order book, and high investor interest in railway stocks.
- RailTel Corporation of India Ltd: Gained 12.03% to ₹446.95 primarily due to excellent Q4 FY25 results, new contracts, and expansion into data centers.
- Rites Ltd: Increased 5.37% to ₹295.10, supported by improved Q4 margins, dividend announcement, and a strong project pipeline.
- Garden Reach Shipbuilders & Engineers (GRSE): Climbed 6.90% to ₹3368.00 after signing an MoU for India's first polar research vessel and reporting strong Q4 FY25 earnings.
- Bharti Airtel: Rose 1.72% to ₹1873.00, boosted by strong Q4 FY25 net profit, increasing data usage, and 5G rollout.
Wrap-up: Defence and railway stocks were prominent gainers, driven by specific order wins and positive corporate news.
Some stocks experienced significant declines, often due to company-specific news:
Wrap-up: Individual stock movements were largely dictated by company-specific news, overshadowing the broad market recovery for these specific counters.
Key Drivers Affecting Sentiment:
- RBI Monetary Policy Committee (MPC) Meeting: Began today in Mumbai, with the decision on India's key interest rates expected on Friday, June 6. Easing retail inflation (3.16% in April) is setting the stage for potential monetary easing.
- Positive Wall Street: US markets closed higher overnight, stemming from strong US job openings data.
- US Federal Reserve: Commentary from US Fed officials provided mixed signals, with the broader expectation that the US Fed will likely maintain its current stance until September 2025.
- Trade War Fears: Renewed fears of a trade war between the US and China, alongside increased steel and aluminum import tariffs, kept trade-related risk premiums in play.
- Crude Oil Prices: Remained relatively stable around the mid-$60s per barrel, generally positive for India.
- Indian Rupee: Depreciated by 25 paise against the US dollar, trading at 85.86 in early market action, partly attributed to FII withdrawals.
Wrap-up: Positive global cues and the anticipation of RBI's monetary policy decision were key factors supporting the market, despite ongoing trade tensions.
Key Events to Monitor:
- June 5, 2025: National Workshop on Using Alternate Data Sources and Frontier Technologies for Policy Making, HSBC Manufacturing PMI Final MAY.
- June 6, 2025: HSBC Composite PMI Final MAY, HSBC Services PMI Final MAY, and the most significant event, the RBI Interest Rate Decision.
- Corporate Earnings: Several companies slated to announce their audited Q4 FY25 results, including Balaji Phosp, Agro Phos India (June 5), and Cospower Engineering, Neelam Linens (June 6).
- Market Levels: Nifty consolidating within 24,500 and 25,100; Sensex faces heavy resistance at 81,300, while 80,600 puts indicate strong support.
The Indian stock market demonstrated resilience today, snapping a three-day losing streak to close in positive territory. This was largely supported by robust domestic institutional buying and positive global cues. The commencement of the RBI Monetary Policy Committee meeting and the anticipation of potential interest rate cuts, driven by easing inflation, were key domestic drivers. Despite Foreign Institutional Investors being net sellers on the preceding day, strong Domestic Institutional Investor inflows provided a crucial cushion, highlighting the growing strength of domestic capital in stabilizing the market. The upcoming RBI decision will be pivotal for market direction in the short term.