Sensex today extends gains to 4th straight session, rises over 250 points; Nifty above 25,100; financials shine

Stock market today: Bulls maintained their dominance on Dalal Street during Monday’s trade, June 9, lifting the front-line indices by over 0.3%, as RBI’s bumper monetary policy measures, coupled with better-than-expected U.S. jobs data and signs of progress in U.S.-India trade talks, brought fresh cheer to markets that had been trading in a narrow range.

There was broad-based buying in today’s session, with mid-cap financial stocks leading the rally. Meanwhile, stronger-than-expected U.S. jobs data boosted optimism in the IT sector, while expectations grew that RBI’s 50 basis point cut in the repo rate could translate into higher sales of entry-level automobiles, which had remained subdued in recent months, causing auto stocks to spike sharply.

Additionally, ongoing progress in trade negotiations between the U.S. and China has supported the rally in metal counters. QSR stocks have also attracted investor interest amid expectations of a surge in demand, as tax cuts and repo rate reductions are expected to boost spending in urban India. The gold NBFC stocks have also maintained their momentum following the relaxation of norms for small-ticket gold loans by RBI.

Eventually, the Nifty 50 settled above the 25,000 mark for the second straight session at 25,103, by gaining 0.40%, while the Sensex settled at 82,445, 256 points, or 0.3%, higher than the previous close.

The broader market continued to dominate the front-line indices, with the Nifty Midcap 100 index and the Nifty Smallcap 100 index gaining 1.10% and 1.60%, respectively.

Sectoral Performance: Banking stocks shine; realty sees profit booking

Among the 13 major sectoral indices, 12 ended with gains, led by the Nifty PSU Bank index, which rallied 1.52%. This was followed by Nifty Oil & Gas, Nifty IT, Nifty Metal, and Nifty Auto, all ending with gains of over 0.50%.

The sole sectoral loser in today’s session was the real estate pack, where investors appeared to book profits following a strong rally in recent sessions. As a result, the Nifty Realty index closed with a loss of 0.14%.

Commenting on today's market performance, Vinod Nair, Head of Research, Geojit Investments Limited, said, "Financial stocks extended their rally in Indian markets, driven by the RBI’s supportive aggressive policy of rate and CRRA cut. These actions have boosted investor confidence and are expected to enhance liquidity in the near to medium term, especially in midcaps. The positive U.S. jobs data and renewed optimism over U.S.-China trade talks lifted global sentiment. Domestically, even large caps expressed renewed momentum led by FII inflows".

Nifty breaks out of consolidation, eyes 25,700 as sentiment turns bullish, says expert

Rupak De, Senior Technical Analyst at LKP Securities, said, "The Nifty has finally broken out of its prolonged consolidation on the daily timeframe. Market sentiment appears positive, with the index sustaining well above the crucial 50-day moving average (50DMA). A golden crossover on the daily chart has been a support for the bullish sentiment. Following the breakout, a rise towards 25,350 looks likely. A decisive move above this level could trigger a rally towards 25,700. On the downside, support is placed at 24,850; a breach below this level may lead to a shift in sentiment."

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.