The key equity indices benchmarks traded in narrow range with robust gains in mid-afternoon trade. The Nifty traded above 24,850 mark. The market remained firm despite lingering worries about increasing U.S. interest rates and a growing federal deficit. Investors are likely to keep a close watch on bond yields and global economic indicators.
Private bank stocks rebound after previous session's decline.
At 14:25 IST, the barometer index, the S&P BSE Sensex, zoomed 809.64 points or 1% to 81,761.63. The Nifty 50 index jumped 260.95 points or 1.06% to 24,875.25.
In the broader market, the S&P BSE Mid-Cap index advanced 0.57% and the S&P BSE Small-Cap index rallied 0.53%.
The market breadth was positive. On the BSE, 2,314 shares rose and 1,574 shares fell. A total of 157 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, fell 0.01% to 17.26.
Economy:
Global rating agency Fitch Ratings has raised India’s GDP growth potential by 0.2 percentage points to 6.4% over the next five years. The move comes following a sharper rise in the country’s labour force participation rate in recent years. Fitch highlighted that the revised estimate for India shows a stronger contribution from labour inputs, mainly total employment.
At the same time, the global rating agency has scaled down China’s growth projection by 0.3 percentage points to 4.3% from 4.6% earlier. The changes are part of Fitch’s revised assessment of potential GDP growth for 10 emerging market economies over the next five years.
India continues to remain the world’s fastest growing major economy and the only country expected to clock over 6% growth in the next two years, according to an IMF report released last month. The IMF has trimmed the growth forecast for over 120 countries.
Buzzing Index:
The Nifty Private Bank index advanced 1.06% to 27,614.80. The index declined in the past trading sessions.
Kotak Mahindra Bank (up 1.86%), Axis Bank (up 1.77%), Yes Bank (up 1.1%), RBL Bank (up 0.92%) and Federal Bank (up 0.88%), IndusInd Bank (up 0.6%), HDFC Bank (up 0.59%), ICICI Bank (up 0.47%), IDFC First Bank (up 0.27%) surged.
Numbers to Track:
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.4100, compared with its close 85.9500 during the previous trading session.
MCX Gold futures for 5 June 2025 settlement added 0.20% to Rs 95,730.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.50% to 99.43.
The United States 10-year bond yield declined 0.72% to 4.520.
In the commodities market, Brent crude for July 2025 settlement fell 47 cents or 0.73% to $63.97 a barrel.
Stocks in Spotlight:
Sun Pharmaceutical Industries declined 2.80% after the company’s consolidated net profit declined 19% to Rs 2,149.88 crore, despite of 8.5% increase in revenue from operations to Rs 12,815.58 crore in Q4 FY25 over Q4 FY24.
Container Corporation of India (CONCOR) declined 2.79% after the company reported 5.8% fall in consolidated net profit to Rs 298.53 crore on a 1.6% decline in net sales to Rs 2287.83 crore in Q4 FY25 as compared with Q4 FY24.
MTAR Technologies rose 0.05%. The company reported a 181.72% year-on-year (YoY) surge in consolidated net profit to Rs 13.72 crore for the quarter ended March 2025 (Q4 FY25), compared to Rs 4.87 crore in the corresponding quarter last year.