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Indian stock indices remained in the green for the second straight day on continued hopes that the India-US trade deal is on the anvil, as Trump's commerce secretary recently indicated.
Firm US stock indices also lent support to Indian stock benchmarks. Today, Sensex closed at 81,442.04 per cent, up 443.79 points or 0.55 per cent, while Nifty closed at 24,750.90 points, up 130.70 points or 0.53 per cent. Nifty IT, Nifty metal, and Nifty pharma were the top movers among the sectoral indices. Among losers were Nifty Media, Nifty PSU Bank, and Nifty Private Bank. Global gold prices were also in the green today. At the time of filing this report, per ounce gold was quoted at USD 3,416, up 0.5 per cent. Going ahead, investors now await further updates on India-US trade deal negotiations and the RBI monetary policy outcome on Friday. "Overall, the index traded in a volatile range as participants remained cautious ahead of the RBI's monetary policy decision scheduled for tomorrow," said Sundar Kewat, Technical and Derivatives Analyst, Ashika Institutional Equity - Ashika Stock Broking, part of Ashika Group. "Easing US Treasury yields and a weakening US dollar provided some support to Indian equities, although global sentiment remains cautious amid persistent US-China trade tensions," Kewat added. Another good news for the financial markets is that foreign portfolio investors (FPIs) have turned net sellers in Indian stock markets for the second straight month in May. FPIs had fuelled the latest bull run in the stock market after a sharp slump. "Buy on dips continues to be the ideal strategy now. Rate sensitives will be preferred in view of the expected rate cut by the MPC on 8th June," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited. Indian stock markets outperformed global markets over the past few weeks, as volatility continued to reign in global markets over possible forthcoming US reciprocal tariffs. A comfortable inflation number in India also somewhat supported the domestic equity indices. In 2024, Sensex and Nifty accumulated a growth of about 9-10 per cent each. In 2023, Sensex and Nifty gained 16-17 per cent, on a cumulative basis. In 2022, they gained a mere 3 per cent each. (ANI)
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