Indian stocks remain in green for fourth day; Sensex jumps 256 points

Mumbai, June 9, 2025 — Indian equity markets continued their positive momentum for the fourth consecutive session on Monday, with the benchmark BSE Sensex gaining 256.29 points to close at 74,214.55, while the NSE Nifty 50 rose by 75.95 points to end at 22,624.35. Investor optimism was driven by strong institutional inflows, supportive macroeconomic data, and hopes of continued policy stability post-election.

Broad-Based Buying Supports Index

The rally was broad-based, with gains across key sectors including banking, auto, FMCG, and IT. Heavyweights like Reliance Industries, HDFC Bank, and Infosys provided crucial support to the benchmarks.

Among the Sensex constituents, Tata Motors surged over 3.5%, while Bajaj Finserv, ITC, and Kotak Mahindra Bank posted gains between 1.5% to 2.3%. On the Nifty, midcaps and smallcaps also outperformed, with the Nifty Midcap 100 and Nifty Smallcap 100 gaining 0.9% and 1.3%, respectively.

Analyst Commentary

Market analysts attributed the sustained rally to a confluence of positive domestic and global factors.

“The markets are riding a wave of post-election clarity and anticipation of stable governance, which is essential for continuity in economic reforms,” said Ajay Tyagi, Head of Research at UTI Securities. “Additionally, FIIs have turned net buyers in the last few sessions, adding to bullish sentiment.”

“With inflation within RBI’s comfort zone and Q4 corporate earnings largely meeting expectations, there’s a sense of cautious optimism among investors,” added Meera Sinha, Senior Economist at Axis Capital.

Foreign Inflows and Macro Tailwinds

Foreign institutional investors (FIIs) were net buyers to the tune of ₹1,578 crore on Friday, following a net inflow of ₹2,142 crore in the previous session. This marked a significant reversal from the outflows seen in April and early May.

On the macroeconomic front, India's PMI data showed steady expansion in both manufacturing and services. Meanwhile, inflation remained subdued at 4.65% in May, well within the RBI’s target range, easing fears of a rate hike in the upcoming policy meet.

Global Sentiment Mixed Ahead of Fed Meeting

Global markets, however, presented a mixed picture ahead of the US Federal Reserve’s policy decision later this week. Wall Street closed flat on Friday, while Asian peers were rangebound in early Monday trade.

“Investors are watching out for any signals of a pause or pivot from the Fed,” said Rohit Bansal, Global Market Strategist at IIFL Wealth. “While US inflation is moderating, concerns over a slowdown in the Chinese economy could cap gains in emerging markets.”

Technical View: Bulls in Control

From a technical standpoint, the Nifty continues to hold above its key 20-day moving average (DMA), signaling strength.

“The index has formed a higher high and higher low pattern for the fourth session. As long as Nifty holds above 22,500, we may see a further rally towards 22,800 in the short term,” noted Shivani Gupta, Technical Analyst at Motilal Oswal.

Bank Nifty, too, saw buying interest, ending 180 points higher at 48,212. Analysts see potential for further upside if it breaches resistance near the 48,500 level.

Investor Outlook: Stay Stock-Specific

While broader sentiment remains upbeat, experts advise a stock-specific approach, especially in sectors like auto, capital goods, and select financials.

“Markets have priced in the political outcome. Now the focus will shift to the upcoming Union Budget, monsoon progress, and Q1FY26 earnings,” said Harshit Desai, Fund Manager at SBI Mutual Fund. “We advise investors to stick with quality names and avoid over-leveraged plays.”

Investors are also eyeing developments in crude oil prices, which have remained range-bound amid concerns about demand and OPEC+ production adjustments.

Key Gainers and Losers

Looking Ahead

With four straight sessions in the green, markets are entering a key phase where global events and domestic cues could dictate short-term movements. The upcoming Fed rate decision, followed by India's IIP and inflation data later this week, will be crucial.

In the medium term, sustained FII inflows, sectoral rotation, and budget expectations could keep the bulls in control, provided there are no external shocks.