The domestic equity benchmarks ended with small gains today, extending the rally for the sixth day in a row, supported by encouraging economic data and RBI’s liquidity easing measures. Continued buying by foreign institutional investors (FIIs) lent further support to market sentiment. However, volatility may persist ahead of the upcoming derivatives contract expiry later this week. Traders also remain focused on Q4 earnings reports from companies. The Nifty closed above the 24,150 mark.
The barometer index, the S&P BSE Sensex, added 187.09 points or 0.24% to 79,595.59. The Nifty 50 index rose 41.70 points or 0.17% to 24,167.25. In the past six trading sessions, Sensex and Nifty surged 7.78% and 7.89%, respectively.
The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index jumped 0.81% and the S&P BSE Small-Cap index advanced 0.82%. The market breadth was strong.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, rose 0.30% to 15.52.
Among the sectoral indices, the Nifty Realty index (up 2.42%), the Nifty FMCG index (up 1.89%) and the Nifty Consumer Durables index (up 1.50%) outperformed the Nifty 50 index.
Meanwhile, the Nifty IT index (down 0.57%), the Nifty Oil & Gas index (down 0.04%) and the Nifty Media index (up 0.15%) underperformed the Nifty 50 index.
Economy:
In a relief to banks, the Reserve Bank of India has finalized its Liquidity Coverage Ratio (LCR) guidelines, reducing the proposed additional run-off factor on internet and mobile banking-enabled retail deposits to 2.5%, effective 1 April 2026. Under the new norms, stable and less stable retail deposits will now attract run-off factors of 7.5% and 12.5%, respectively. The RBI also lowered the run-off rate on wholesale funding from non-financial entities like trusts and LLPs to 40% from 100%, aiming to better reflect funding stability. These changes are expected to improve banks' LCR by about 6% while ensuring continued compliance with minimum regulatory
The combined Index of Eight Core Industries (ICI) increased by 3.8% (provisional) in March 2025, as compared to 3.4% in February 2025. The production of cement, fertilizers, steel, electricity, coal, and refinery products recorded positive growth in March 2025. India’s core sector registered a moderate growth of 4.4% in FY25, easing from the stronger 7.6% expansion seen in FY24.
Numbers to Track:
The yield on India's 10-year benchmark federal paper grew 1.69% to 6.427, compared with the previous close of 6.417.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.1925 compared with its close of 85.1575 during the previous trading session.
MCX Gold futures for 5 June 2025 settlement rose 1.15% to Rs 98,400. Gold prices touched the Rs 1 lakh mark in intraday trade today.
The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.06% to 98.42.
The United States 10-year bond yield rose 0.41% to 4.423.
In the commodities market, Brent crude for June 2025 settlement declined 94 cents or 1.42% to $67.20 a barrel.
Global Markets:
Dow Jones futures jumped 327 points, signaling a potential bounce-back for U.S. equities after a rocky start to the week.
Most European markets traded lower on Tuesday, amid ongoing concerns about the U.S. economy and global trade.
Most Asian stocks ended higher. But gains were kept in check after Wall Street stumbled, weighed down by President Trump intensifying his public pressure on Federal Reserve Chairman Jerome Powell—again raising eyebrows over the Fed’s independence.
Meanwhile, tensions between Washington and Beijing flared up further. China slapped sanctions on several U.S. lawmakers, officials, and NGO leaders, accusing them of “egregious behavior” over Hong Kong-related issues. The move comes on the heels of U.S. sanctions imposed last month on Chinese and Hong Kong officials—an action that Beijing has "strongly condemned," according to foreign ministry spokesperson Guo Jiakun.
Back in the U.S., all three major indexes slid overnight as investors digested Trump’s Powell tirade and a lack of progress on global trade talks. The Dow tumbled 2.48%, the S&P 500 sank 2.36%, and the Nasdaq dropped 2.55%.
Powell, for his part, reminded everyone last week that the Fed’s independence is not just tradition—it’s "a matter of law." Markets are now trying to parse whether Trump’s threats are just more rate-cut rhetoric or something more serious.
Adding to the global gloom, a leading brokerage trimmed its global growth forecast on Monday. Blaming the ongoing tariff drama and mounting uncertainty from U.S. trade policy, it now expects global GDP to grow just 2.8% in 2025 and 3% in 2026—down 30 and 20 basis points, respectively, from previous estimates. One-third of the downgrade stems from the U.S., with the rest spread across China, Japan, and emerging markets.