June 6, 2024
New Delhi, India
Stock Market Wrap
For the second consecutive day on Thursday, Indian benchmark indices, Sensex and Nifty, closed on a higher note, buoyed by gains in banking and tech stocks. The Sensex rose by 692.27 points to settle at 75,074.51, while the Nifty gained 201.05 points, closing at 22,821.40.
Key Highlights of the Trading Session
- Market Performance:
- Sensex increased by 692 points, or 0.93%.
- Nifty rose by 201 points, or 0.89%.
- Top Gainers:
- BHEL soared 9%.
- HCL Technologies rose by 4%.
- Tech Mahindra, Shriram Finance, and SBI Life Insurance were among other significant gainers.
- Top Losers:
- Hindalco Industries, Hindustan Unilever (HUL), Asian Paints, Hero MotoCorp, and Nestle India saw declines.
- Sectoral Performance:
- PSU Banks, IT, and Realty sectors posted gains between 3-5%.
- Pharma and FMCG sectors were the only laggards.
Factors Driving the Market Rally
- Political Stability:
- The market rally is attributed to the political stability as Prime Minister Narendra Modi is set to secure a third term with crucial allies pledging their support.
- Institutional Activity:
- Foreign institutional investors (FIIs) net sold equities worth ₹5,656.26 crore, while domestic institutional investors bought shares worth ₹4,555.08 crore on June 5.
Global Market Influence
- European and Global Markets:
- World stocks neared an all-time high as the European Central Bank (ECB) was expected to cut interest rates for the first time in nearly five years.
- The euro continued to rise, reflecting positive sentiment ahead of the ECB’s anticipated rate cut.
- US Market Sentiment:
- Wall Street saw new records with the S&P 500 and Nasdaq, driven by strong performance from Nvidia, now the world’s second-most valuable company.
- Expectations of potential Federal Reserve rate cuts due to a weakening labor market contributed to positive sentiment in global markets.
Economic Indicators and Future Outlook
- Inflation and Wage Growth:
- Euro zone inflation rose more than expected in May, driven by the services sector, reflecting strong domestic demand.
- Higher-than-expected wage increases in the first quarter boosted consumer disposable income, adding to inflation pressures.
- Investor Sentiment:
- Despite FII outflows, the Indian stock market remains buoyed by domestic investor confidence and positive global cues.
- Market participants will continue to monitor global economic indicators and policy decisions from major central banks.
Disclaimer:
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