The Indian stock market staged a strong recovery on June 5, 2025, with benchmark indices closing significantly higher, driven by a confluence of domestic and global factors. The day saw broad-based buying interest and strong confidence among domestic investors.
Table of Contents:-
- Market Overview – Key Indices Performance
- Top Stock Market News – What Shaped Today’s Trading
- FII and DII Activity – Where Big Money Moved
- Top Gainers and Losers – Best and Worst Performing Stocks
- Economic and Global Factors – What Else Affected Markets
- What to Watch in the Coming Week – Key Events and Predictions
- Final Takeaway – Summary of Stock Market Week
Both the BSE Sensex and NSE Nifty50 closed with notable gains, indicating a strong rebound after a period of cautious trading.
- The Sensexrose by 443.79 points (0.55%) to settle at 81,442.00. It touched an intraday high of 81,911.00.
- The Nifty50 advanced by 130.7 points (0.53%), concluding the session at 24,750.90, maintaining its position above the crucial 24,700 mark.
The market's positive trajectory was significantly influenced by encouraging domestic corporate developments and favorable global macroeconomic cues.
Global Influences:
- A fall in US Treasury Yields and a weaker US dollar made emerging markets like India more attractive.
- Weaker US economic data (ADP report showing lower private-sector employment) fueled hopes for potential US Federal Reserve interest rate cuts later in the year.
- Global oil prices dropped from $85 to $78 per barrel, benefiting net oil importers like India.
- A sharp dip in US ISM PMI data, indicating a slowing US economy, is paradoxically seen as positive for emerging markets as it could lead to US Fed rate cuts.
Institutional investor activity showed continued robust support from Domestic Institutional Investors (DIIs).
- Foreign Institutional Investors (FIIs) were net sellers, offloading shares worth ₹1,076.18 crore.
- Domestic Institutional Investors (DIIs) continued their strong buying streak, emerging as net buyers with an inflow of ₹2,566.82 crore.
The significant net buying by DIIs more than offset the FII outflows, providing crucial domestic liquidity and supporting the Indian stock market. This trend highlights the increasing maturity and self-reliance of the Indian stock market, making it more resilient to global shocks. The FII selling could be tactical profit-booking ahead of the RBI Monetary Policy Committee (MPC) announcement.
Top Gainers of the Day:
- Cochin Shipyard Ltd. (up 12.66% to ₹2350.80): Strong order inflow and robust government contracts boosting shipbuilding prospects.
- Suprajit Engineering Ltd. (up 8.79% to ₹471.25): Improved auto sector demand and new product launches driving growth optimism
- JM Financial Ltd. (up 8.18% to ₹141.62): Positive quarterly earnings and increased deal activity lifting investor sentiment
- Data Patterns (India) Ltd. (up 6.24% to ₹3171.30): Strong order book and growing defence electronics demand supporting the stock
- Sobha Ltd. (up 5.70% to ₹1602.30): Healthy sales momentum and better-than-expected real estate project execution.
Top Losers of the Day:
- Future Lifestyle Fashions Ltd. (down 3.94% to ₹1.71): Weak quarterly results and inventory overhang weighed on the stock.
- VIP Industries Ltd. (down 3.12% to ₹347.20): Slowdown in travel and discretionary spending impacted sales outlook.
- Kaveri Seed Company Ltd. (down 3.07% to ₹1434.90): Seasonal demand weakness and raw material cost pressures affected margins.
- DCB Bank Ltd. (down 3.02% to ₹141.16): Rise in non-performing assets (NPAs) and cautious credit growth outlook.
- Graphite India Ltd. (down 2.66% to ₹555.00): Volatile raw material prices and margin compression concerns.
Several broader economic and global factors played a pivotal role in shaping market sentiment.
- RBI Decisions: The RBI's Monetary Policy Committee (MPC) meeting commenced on June 4, with the crucial policy decision expected on June 6, 2025, at 10:00 AM IST. Economists widely anticipate a third consecutive 25 basis points (bps) repo rate cut.
- Inflation Numbers: India's retail inflation (CPI) eased to 3.2% in April 2025, the lowest since July 2019, and is expected to moderate further to 3.0% in May. This easing inflation provides the RBI with policy space for rate cuts.
- Crude Oil Updates: Global crude oil prices declined from $85 to $78 per barrel, attributed to higher global supply and slowing demand. This is a significant positive for India, reducing its import bill and easing inflationary pressures.
- US Fed News: Weaker-than-expected US economic data (ADP report) intensified hopes for potential US Federal Reserve interest rate cuts later in 2025, making emerging markets like India more attractive for global capital flows.
- Global Geopolitical Factors: Escalating tensions in West Asia could delay the India-Middle East-Europe Economic Corridor (IMEC) rollout. However, a sharp dip in US ISM PMI data, indicating a slowing US economy, is seen as beneficial for emerging markets in the medium term, potentially prompting US Fed monetary easing.
Market participants are keenly awaiting the RBI monetary policy announcement as the most significant catalyst.
- RBI Monetary Policy Announcement: The most anticipated event is the RBI MPC announcement on Friday, June 6, 2025, at 10:00 AM IST, by Governor Sanjay Malhotra. A widely expected rate cut would be a strong positive signal, especially for interest-rate sensitive sectors.
- Market Holidays: Indian stock markets (NSE and BSE) will remain open on both Friday, June 6, and Saturday, June 7, 2025, as Bakrid is not a trading holiday.
- Company Results: Several companies are scheduled to announce their audited financial results on June 6, including Cospower Engineering, Rose Merc, Kck Industries, Sterling Green Woods, Marinetrans, Neelam Linens And Garments India, and Cressanda Railway Solutions.
- Corporate Actions: Torrent Power has fixed June 6, 2025, as the record date for its ₹5 final dividend. Promoters of Diamond Power Infrastructure are set to offload up to a 5.98% equity interest on June 5 and 6.
Market Levels to Watch:
- Nifty Predictions: Immediate intraday resistance at 24,720, followed by 24,850. A definitive break above 25,000 is essential for a new upward momentum. Downside support is at 24,530, followed by 24,400. The 24,400–24,500 zone is a critical support region.
- Bank Nifty: Intraday resistance at 55,890, followed by 56,160. Downside support at 55,410, followed by 55,100. A firm break over 55,800 is necessary for a tentative breakout from its tight range.
The India VIX index eased further, slipping 4.89% to 15.74, indicating reduced market anxiety and potential optimism ahead of the RBI policy.
June 5, 2025, marked a robust recovery for the Indian stock market, signaling strong underlying confidence and a positive outlook. Key highlights included:
- Significant gains for both Sensex and Nifty, reversing previous losses.
- A broad-based rally with mid-cap and small-cap indices outperforming.
- Realty and Pharma leading gains, driven by rate cut expectations.
- Strong domestic corporate news providing stock-specific catalysts.
- Robust DII buying counteracting FII outflows, highlighting market resilience.
- Favorable global cues like falling US Treasury yields and hopes of US Fed rate cuts.
- An active IPO market with strong QIB interest in ongoing issues and a substantial pipeline.
As the market heads into June 6, all eyes will be on the Reserve Bank of India's monetary policy announcement, which is expected to be the primary driver of market direction. The strong rebound on June 5, underpinned by domestic liquidity and favorable global signals, positions the Indian stock market well for potential further gains, contingent upon the RBI's decision aligning with market expectations.