Stock market today: Nifty 50, Sensex rebound sharply; investors earn over ₹12 lakh crore in a day

Sensex jumped 2,303 points, or 3.20 per cent, to 74,382.24, while the Nifty 50 vaulted 736 points, or 3.36 per cent, to 22,620.35.

The Indian stock market witnessed strong gains across sectors after indications that the BJP-led NDA would form the government at the Centre. 

Also Read: Why is Indian stock market rising after TDP leader Chandrababu Naidu’s statement?

Comments from top brokerage firms that the election outcome was a short-term trigger for the market and had no material impact on long-term growth prospects also appeared to boost market sentiment. 

Also Read: Lok Sabha Election results 2024: What does lack of BJP majority mean for market, economy? Foreign brokerages weigh in

The steep fall in the market the previous session gave investors an opportunity to buy stocks at relatively lower prices as the medium—to long-term outlook of the Indian stock market remains attractive due to solid macroeconomic foundations, the growing might of domestic investors, and expectations of rate cuts later this year.

Not only the large-caps but the second-rung mid and smallcap indices also saw strong gains. The BSE Midcap index jumped 4.41 per cent, while the Smallcap index rose 2.93 per cent.

The overall market capitalisation of the firms listed on BSE rose to nearly ₹408 lakh crore from nearly ₹395 lakh crore in the previous session, making investors richer by about ₹13 lakh crore in a single session.

Nearly 120 stocks, including Mahindra and Mahindra, Bajaj Auto, Hero MotoCorp, TVS Motor Company, Britannia, Dabur, Colgate-Palmolive, Godrej Consumer and Marico, hit their fresh 52-week highs in intraday trade on the BSE.

The market’s focus now will be on the outcome of the monetary policy meeting which is underway. RBI MPC began its three-day meeting on Wednesday, June 5, and the decision is due on Friday, June 7.

Experts expect the central bank to maintain a status quo on the repo rate and policy stance.

Also Read: RBI MPC meet begins today: Can the central bank trim repo rate or tweak its policy stance in June ? Experts weigh in

Top Nifty 50 gainers and losers today

As many as 48 stocks in the Nifty 50 index ended with gains today. Shares of Adani Ports (up 7.29 per cent), IndusInd Bank (up 7.06 per cent) and Hindalco (up 6.46 per cent) closed as the top gainers in the index.

Only two stocks – Larsen and Toubro (down 0.10 per cent) and BPCL (down 0.03 per cent) ended in the red in the index.

Also Read: Top Gainers and Losers today on 5 June, 2024: Adani Ports & Special Economic Zone, Indusind Bank among most active stocks; Check full list here

Sectoral indices today

All sectoral indices ended with strong gains on the NSE. 

Nifty Metal and Private Bank indices surged over 5 per cent each today, while Nifty Bank, Auto, Financial Services and FMCG jumped over 4 per cent each.

Expert view on markets

“The Indian market exhibited a spirited recovery driven by broad-based buying across various sectors, and political stability appears assured. However, attention will remain on the formation of the government and the forthcoming RBI policy meeting,” said Vinod Nair, the head of research at Geojit Financial Services.

“The market does not expect any change in RBI’s policy stance given persistent high food inflation and an expectation of an increase in government spending, which has led to notable traction in FMCG stocks,” said Nair.

Technical views on Nifty 50

Shrikant Chouhan, the head of equity research at Kotak Securities, pointed out that after an early morning selloff, the Nifty/Sensex took support near 21,800/71,900 and bounced back sharply.

“Nifty 50 and Sensex reclaimed the levels of 22,500 and 74,000, or 50-day SMA (simple moving average), respectively, which is largely positive. We are of the view that the current market texture is extremely volatile; hence, level-based trading would be the ideal strategy for day traders,” said Chouhan.

“For the traders now, 22,500-22,400/74,000-73,700 would be the key support zones, while 22,800-22,950/75,000-75,500 would be a crucial resistance area for the bulls. However, below 22,400/73,700, uptrend would be vulnerable,” Chouhan said.

Ajit Mishra, SVP of research at Religare Broking, said for the Nifty 50, sustaining above the 22,600 level is crucial for a move towards 23,000. Conversely, the 21,800-22,000 range should provide support in case of profit-taking.

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Published: 05 Jun 2024, 03:32 PM IST