Sensex, Nifty 50 snap 3-day losing run; investors earn ₹2 lakh crore— 10 key highlights from Indian stock market today

Mumbai, June 4, 2025:
After a subdued start to the week, Indian equity markets bounced back sharply on Wednesday, with benchmark indices Sensex and Nifty 50 snapping their three-day losing streak. Investors cheered across sectors as improved global cues, easing bond yields, and selective buying in large-cap stocks helped lift market sentiment. The rally led to a significant wealth addition of over ₹2 lakh crore in a single day, reviving optimism ahead of key macroeconomic data and the RBI policy meeting.

Key Market Highlights

Here are the top 10 takeaways from today’s market action:

1. Sensex and Nifty 50 Climb Strongly

The BSE Sensex surged 692 points or 0.95% to close at 73,321.98, while the NSE Nifty 50 jumped 201 points or 0.91% to settle at 22,227.85. Both indices managed to recover from early losses and closed near the day's high, indicating strong intraday momentum.

2. Investors Add ₹2 Lakh Crore to Wealth

The total market capitalization of BSE-listed companies rose by ₹2 lakh crore, taking it to nearly ₹396 lakh crore. The rebound came after a cautious phase driven by political uncertainty, global rate concerns, and profit-booking by institutional investors.

3. Broad-Based Buying Across Sectors

Sectoral indices on the NSE closed in the green. Nifty Bank and Nifty Auto led the rally, gaining over 1.3% each. Nifty IT, Nifty FMCG, and Nifty Pharma also posted moderate gains, signaling recovery across the board.

4. HDFC Bank, Reliance, and Infosys Lead the Charge

Heavyweights HDFC Bank, Reliance Industries, and Infosys were among the top contributors to the Sensex and Nifty gains. HDFC Bank surged over 2% on expectations of improved quarterly performance, while Reliance rebounded on value buying.

5. Midcaps and Smallcaps Outperform

The BSE Midcap index rose 1.04%, and the Smallcap index gained 1.12%, reflecting robust investor appetite beyond blue-chip stocks. Broader market participation is often seen as a healthy sign of sustained bullish sentiment.

6. FII Activity Turns Slightly Positive

Foreign Institutional Investors (FIIs), who had been net sellers over the past few sessions, turned marginal net buyers today. Provisional data showed net FII inflows worth ₹238 crore, hinting at renewed interest in Indian equities amid easing global uncertainties.

7. Volatility Cools Down

The India VIX, a measure of market volatility, slipped over 4% to settle around 13.5, suggesting that investors expect relatively stable trading sessions in the near term. The drop in VIX is considered supportive for the continuation of the current uptrend.

8. Global Markets Offer Support

Asian and European markets traded higher as US Treasury yields eased and investors awaited key economic data. A broadly positive global backdrop provided Indian markets with much-needed support after three sessions of losses.

9. Rupee Gains Against the Dollar

The Indian Rupee appreciated by 9 paise to close at ₹83.05 per USD, helped by foreign inflows and the rebound in domestic equities. A stronger rupee can ease import-related costs and inflationary pressures.

10. All Eyes on RBI Policy and GDP Numbers

Investors are now focused on the upcoming Reserve Bank of India (RBI) monetary policy announcement and Q4 GDP data, both of which could influence short-term market direction. While the central bank is expected to maintain status quo, commentary on inflation and growth will be closely scrutinized.

Analyst Insights

Ruchit Jain, Lead Research Analyst at 5paisa.com, remarked:

“After the recent correction, today’s upmove came as a relief rally. Key support levels held firmly, and we are now seeing renewed interest in large caps. If the Nifty sustains above 22,200, it could retest the all-time highs in the coming sessions.”

Apurva Sheth, Head of Market Perspectives at Samco Securities, added:

“Market resilience despite global volatility signals that domestic investors are taking control. Midcap and smallcap participation indicates strength in the rally. However, the RBI policy outcome will be a key trigger to watch.”

Wednesday's market performance has reignited bullish sentiment among retail and institutional participants alike. With the political scenario stabilizing post-elections and global markets showing signs of easing pressure, many investors are expecting further gains.

However, short-term traders are advised to remain cautious ahead of the RBI policy and economic data announcements. Medium- to long-term investors may find opportunities in sectors like banking, auto, and capital goods, which are expected to benefit from cyclical tailwinds and policy stability.