Despite mild volatility in the latter half, the market maintained its upward trajectory, ending well above yesterday’s close of 80,998.
On the other hand, the Nifty50 ended Thursday’s session with a solid gain, rising 130 points, or 0.53%, to close at 24,750. The index opened slightly lower but quickly gathered momentum, touching an intraday high of 24,761 in the final minutes of trade.
“Markets held their ground on June 5, with benchmark indices closing on a firm footing, despite paring intraday gains ahead of the RBI Monetary Policy Committee (MPC) decision slated for tomorrow. The real alpha, however, was generated in the broader market space, where mid- and small-cap counters outperformed the frontline indices, reflecting strong risk-on sentiment. Volatility eased, with India VIX cooling off by over 4%, indicating reduced hedging demand and improving investor confidence. The Nifty50 opened on a flat note but witnessed a gradual uptrend through the mid-session, scaling an intraday high of 24,899. However, bouts of profit booking at elevated levels led to some retracement, and the index eventually settled at 24,761.30, up 141.10 points or 0.55% on the day,” as per Bajaj Broking Research.
Although it witnessed minor dips around mid-session, buying in key heavyweight stocks ensured a steady recovery toward the close. Today’s rally reflects continued investor confidence as political uncertainty subsides, with hopes of policy continuity and economic stability driving sentiment. The index closed significantly higher than its previous close of 24,620.
This single-day gain added around ₹3 lakh crore to investors’ wealth. The total market capitalisation of companies listed on the BSE increased to nearly ₹448 lakh crore, up from ₹445 lakh crore in the previous trading session.
The RBI is widely anticipated to announce a rate cut tomorrow, accompanied by an encouraging outlook on economic growth and inflation. “With the RBI monetary policy announcement scheduled for Friday, it can lead to a directional catalyst for the market,” as per the Broking Research report.
The rupee also gained ground against the dollar, which supported positive market sentiment. According to Bloomberg data, the rupee appreciated by around 23 paise to trade at 85.68 per U.S. dollar during intraday movement on June 5.
Investor sentiment in emerging markets, including India, was shaped by a softer dollar and falling bond yields, driven by indications of an economic slowdown in the United States.