Sensex today snaps three-day losing run, rises nearly 260 points; Nifty holds above 24,600; railway stocks shine

June 4, 2025 | Mumbai – After three consecutive sessions of losses, Indian equities rebounded sharply on Wednesday, buoyed by robust buying in railway stocks and a recovery in global market sentiment. The benchmark BSE Sensex climbed 259.83 points or 0.34% to close at 73,738.45, while the NSE Nifty 50 advanced 76.90 points or 0.31% to end at 24,639.85.

Railway and infrastructure-linked stocks were the highlight of the day, driven by strong expectations of capital expenditure in the upcoming Union Budget and renewed investor optimism.

Broad-Based Buying Lifts Markets

The recovery came amid positive global cues and value buying across sectors after recent volatility linked to election results and macroeconomic uncertainties. Markets opened on a firm footing and remained largely in the green throughout the session.

Top gainers on the Sensex included Larsen & Toubro, NTPC, Titan, Tata Motors, and Bharti Airtel. On the flip side, Bajaj Finance, HDFC Bank, and Infosys were among the laggards.

In the broader market, the BSE MidCap and SmallCap indices outperformed the benchmarks, rising 0.9% and 1.1% respectively, indicating strong participation from retail and institutional investors alike.

Railway Stocks Lead the Rally

Railway-focused companies saw a notable surge, driven by optimism around increased budgetary allocation and modernization plans. Shares of RVNL, IRCON International, IRCTC, and Titagarh Rail Systems surged between 5% and 15%, hitting fresh 52-week highs.

“Railway stocks are on investors' radar with the government’s continued emphasis on infrastructure-led growth. The anticipation of higher allocations for railway electrification, modern coaches, and station redevelopment in the budget is fueling this momentum,” said Kunal Vora, Head of India Equity Research at BNP Paribas.

Sectoral Performance: PSU, Auto, Infra Shine

All major sectoral indices ended in the green. The Nifty PSU Bank index jumped 1.8%, while the Nifty Auto and Infra indices gained over 1.2% each.

The IT index, which has been under pressure due to global macro concerns and weak earnings guidance from US tech majors, showed signs of stabilization with a mild uptick of 0.4%.

“The market seems to have found support after the recent correction post-elections. Investors are now turning their attention to policy continuity and the upcoming Union Budget, which is expected to deliver a strong capex push,” said Ajit Mishra, SVP – Technical Research at Religare Broking.

Global Cues Support Sentiment

Asian markets traded higher after Wall Street's strong overnight finish. Investors digested softer U.S. job data, which raised hopes that the Federal Reserve could consider rate cuts later this year. Japan’s Nikkei and South Korea’s Kospi rose by over 1%, while European markets also opened on a positive note.

Brent crude prices remained stable at around $77 per barrel, providing relief to inflation-sensitive sectors.

The rupee appreciated 10 paise to settle at 83.12 against the US dollar, aided by positive FII inflows and easing crude prices.

Technical View: Nifty Above Key Support Zone

Technical analysts pointed out that the Nifty managing to sustain above 24,600 is a sign of strength. It could open the door for a potential move toward 24,800–25,000 if the positive momentum sustains.

“Today’s rebound suggests a return of confidence after the initial election jitters. As long as Nifty stays above 24,500, the trend remains constructive in the short term,” said Rupak De, Senior Technical Analyst at LKP Securities.

Investor Outlook: Budget, Policy, and Monsoon in Focus

With political uncertainty easing and a stable government likely to assume power, investors are now focusing on the policy roadmap, particularly the full Union Budget expected in July.

The monsoon’s progress, inflation data, and global interest rate trends will also influence sentiment in the coming weeks.

“Markets have entered a consolidation phase post a sharp rally in May. The earnings visibility, capital expenditure push, and foreign flows will guide the next leg of the rally,” noted Nandita Jain, Equity Strategist at Kotak Securities.

While volatility may persist ahead of budget announcements, the overall market tone remains cautiously optimistic.

In summary, Indian equity benchmarks staged a smart rebound, ending a three-day losing streak with healthy gains across sectors, especially railway and PSU counters. With macro cues aligning and political clarity returning, the stage appears set for range-bound to bullish market action in the near term, provided earnings and budget expectations are met.