Dalal Street Snaps Losing Streak: Sensex, Nifty Rebound on Global Cues and Sectoral Buying

Indian equity markets successfully broke their three-day losing streak on Wednesday, June 4, 2025, with benchmark indices Sensex and Nifty closing in positive territory, largely driven by a rally in global equities and renewed investor interest in sectors like IT and metals.

Market Rebounds After Three Days of Declines

The Indian stock market opened on a positive note this morning, tracking upbeat sentiment from Asian and US markets. This brought relief to Dalal Street after three consecutive sessions of declines where the BSE Sensex had shed approximately 0.78% and the NSE Nifty 50 had fallen by 0.70% by the close of trading on Tuesday, June 3, 2025.

On Wednesday, June 4, 2025, the 30-share BSE Sensex opened higher and maintained its upward trajectory through the session. As of 2:30 PM IST, the Sensex was trading at 81,017.72, up by 285.06 points or 0.35%. Similarly, the NSE Nifty 50 index was at 24,621.85, gaining 78.05 points or 0.32% around the same time. It’s important for investors to note that these figures represent intraday trading levels, and final closing numbers should be verified from official exchange data post 3:30 PM IST. Earlier in the day, around 12:52 PM, the Sensex was at 80,957.68 (up 220.17 points) and Nifty 50 at 24,595.35 (up 52.85 points).

The market breadth was generally positive. On the BSE at noon, 2,017 stocks advanced while 1,779 declined, and 175 remained unchanged, indicating broader participation in the recovery. The Nifty MidCap index and the Nifty SmallCap index were also trading higher, up by 0.51% and 0.82% respectively around 2:30 PM, signalling strength in the broader market.

Catalysts Driving the Recovery

Several factors contributed to today’s market upswing:

1. Positive Global Cues: A significant driver was the rally in global equity markets. Asian markets opened higher, and US markets had settled with gains on Tuesday, which buoyed investor sentiment in India.
2. Sectoral Buying: Key sectors witnessed renewed buying interest. The Nifty IT index was up by 0.62%, and the Nifty Metal index gained 0.8% in the afternoon session. The Nifty Auto index also saw an uptick of around 0.5%.
3. Anticipation of RBI Policy: Investors are also looking ahead to the upcoming Reserve Bank of India (RBI) monetary policy decisions, which are expected to influence market direction. Market experts suggest that while cautious, sentiment is optimistic regarding global developments and the RBI’s stance.
4. Easing Volatility: The India VIX, a measure of market volatility, had reportedly fallen over 3% on Tuesday to end at 16.56, indicating easing market nervousness which can be conducive for a relief rally.

Key Stock Movements

Several blue-chip stocks contributed to the indices’ gains. Top gainers on the Sensex (around 2:30 PM) included Eternal (up nearly 3-4% at various points during the day), Bharti Airtel (up over 2%), IndusInd Bank, Tata Motors, and Tech Mahindra.

Conversely, some stocks like TCS, Titan, Asian Paints, ICICI Bank, Adani Ports, and Sun Pharma were among the top losers on the Sensex during the afternoon trade. SPARC and Aditya Birla Fashion and Retail (ABFRL) had also slumped earlier in the day.

In other stock-specific news:

• Yes Bank: Saw significant block deal activity on Tuesday, with CA Basque Investments selling a 2.6% stake.
• Tata Technologies: Shares reportedly skidded as TPG, a US-based private equity firm, was looking to sell a 2.1% stake through a block deal.
• Wipro: Shares rose after the IT major announced a multi-year deal with US-based identity security firm Entrust.
• Scoda Tubes: The stainless-steel tubes and pipes manufacturer made a flat debut on Dalal Street, listing at its issue price of ₹140 on both BSE and NSE, disappointing investors who expected listing gains based on its grey market premium.
• Vodafone Idea: Shares dropped around 2% after Ericsson offloaded its stake worth ₹428 crore via a bulk deal.

Expert Commentary and Investor Outlook

Market experts maintain a cautiously optimistic outlook. Sumeet Bagadia, Executive Director at Choice Broking, noted that the Nifty 50 index sustaining above the 24,500 level is a positive sign, though a breach could weaken the market bias towards 24,150-24,200 levels. He identified 24,800 as an immediate hurdle and advised a stock-specific approach.

Chandan Taparia, Analyst – Derivatives at Motilal Oswal Financial Services, pointed out that the Nifty50 had closed below its key 20-day exponential moving average (20 DEMA) on Tuesday. He suggested that unless Nifty50 moves above 24,650, it might witness further profit booking towards 24,400 and then 24,200. Hurdles are seen at 24,750 and 24,850 levels. Options data, according to Taparia, suggests a broader trading range for Nifty between 24,200 to 25,100.

For retail investors, today’s rebound offers some respite after a period of selling pressure. However, the advice from experts is to remain selective and focus on fundamentally strong companies. Keeping an eye on key technical levels for the Nifty and Sensex will be crucial in navigating potential volatility. The market will also closely watch domestic cues like the RBI policy outcome and global macroeconomic data.

What to Watch Next

Looking ahead, several factors will be critical for the Indian stock market:

• RBI Monetary Policy: The outcome of the RBI’s Monetary Policy Committee (MPC) meeting will be a key event. The central bank’s stance on interest rates and inflation will significantly influence market sentiment.
• Global Market Trends: Indian markets will continue to take cues from global equity movements, particularly trends in US markets and other major Asian economies.
• FII Activity: Foreign Institutional Investor (FII) flows will be closely monitored. Recent reports indicated outflows from Indian government bonds, and their activity in the equity segment remains a key sentiment driver.
• Crude Oil Prices: Movements in global crude oil prices can impact inflation and fiscal calculations, thereby affecting market sentiment. Brent crude futures were trading slightly lower today.
• Technical Levels for Nifty:
  • Support: 24,500, 24,400, and 24,150-24,200.
  • Resistance: 24,650, 24,750, 24,800, and potentially 25,100.

Investors should stay informed about these developments and align their investment strategies accordingly.

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This article is for informational purposes only and does not constitute financial advice. Always do your own research before investing.