Sensex jumps over 300 pts, Nifty nears 24,750 led by pharma & Reliance rally
The Indian stock market is trading in the green today, showing strong signs of recovery after a few volatile sessions earlier this week. The two main market indices — Sensex and Nifty 50 — are both moving upward as trading continues. Positive cues from global markets, strong performance in the pharmaceutical sector, gains in Reliance Industries, and expectations of an interest rate cut by the Reserve Bank of India (RBI) are all contributing to the market’s upbeat mood.
Market Performance So Far
As of midday, the BSE Sensex is trading near 81,380, up by around 330 points or 0.4%. The Nifty 50 is also up by over 100 points, hovering around 24,734, which is an increase of around 0.43%.
Both mid-cap and small-cap stocks are also doing well. The Nifty Midcap index is up by about 0.4%, and the Nifty Smallcap index has gained close to 0.8%.
Top Sectors Driving the Market
Pharma Sector
The pharmaceutical sector is one of the best-performing segments today. Shares of several major drug companies are rising steadily. Dr. Reddy’s Laboratories, a well-known pharmaceutical firm, is up by around 3% after signing a partnership with a global biotech company to develop a biosimilar version of a cancer drug. This news has boosted investor confidence in the entire sector.
Other pharmaceutical companies like Zydus Lifesciences and Glenmark are also witnessing gains, supported by positive trial results and strong international demand for their medicines.
Reliance Industries
Reliance Industries, one of India’s largest companies, is up more than 1.3% today. Investors are positive about the company’s future, especially in its retail and telecom divisions. Market experts expect its profits to grow in the coming months, which is attracting more buyers to the stock.
Metal and Auto Stocks
Metal stocks are also seeing steady gains due to rising global commodity prices. Auto companies are moving higher as well, helped by strong monthly sales numbers and improved demand in both urban and rural areas.
Global and Economic Factors Supporting the Market
Positive Global Cues
Global stock markets are mostly stable today. Falling bond yields in the United States and a weaker US dollar are encouraging investors to put money into emerging markets like India. These global factors are helping Indian markets maintain their positive tone.
RBI Rate Cut Expectations
Investors are closely watching the Reserve Bank of India’s ongoing policy meeting. There is strong hope that the RBI will reduce interest rates by 0.25%. Inflation is under control, giving the central bank enough room to lower borrowing costs and support economic growth. If the rate cut happens, it would be the third one this year, further boosting market sentiment.
Foreign and Domestic Investor Activity
Foreign Institutional Investors (FIIs) have returned as buyers, investing over ₹1,000 crore in the Indian market on Wednesday. Domestic Institutional Investors (DIIs) are also supporting the market by continuing their buying activity.
Top Gaining Stocks Today
Several well-known companies are among the top gainers in today’s session:
Dr. Reddy’s Laboratories is leading the pharma rally.
Reliance Industries continues its strong performance.
Power Grid, Mahindra & Mahindra, HDFC Bank, and Sun Pharma are all trading with notable gains.
Welspun Corp is up by about 5% after winning a large export order worth ₹450 crore.
Garden Reach Shipbuilders & Engineers (GRSE) is also gaining after signing a partnership deal with a German shipbuilding firm.
Newgen Software Technologies has jumped nearly 9% following a new international contract worth $2.5 million.
Commodities and Currency Update
Gold prices are slightly higher today, supported by safe-haven buying after weak economic data from the United States.
Crude oil prices are falling due to an increase in U.S. inventory levels and lower demand forecasts from Asia.
The Indian Rupee is slightly weaker today, trading at around ₹85.90 per US dollar.
Government bond yields are falling, with the 10-year bond yield now at around 6.20%. This indicates strong demand for bonds and expectations of lower interest rates ahead.
Technical View: Key Levels to Watch
The Nifty 50 is trading comfortably above the 24,700 mark. If it crosses 24,750 and holds above it, the index could move towards the 24,850 level soon.
On the downside, immediate support for Nifty lies at 24,600.
For the Sensex, support lies around 81,000, while the resistance is seen near 81,500.
Technical experts believe that as long as the market stays above these support levels, the bullish trend may continue.
Economic Indicators and Outlook
India’s services sector is showing steady growth. The Services Purchasing Managers’ Index (PMI) for May is at 58.8, indicating strong expansion in business activity. Export orders are rising, and companies are more confident about future growth.
India’s economy grew by 7.4% in the January-March quarter. For the entire financial year, GDP growth is estimated at 6.5%. These numbers are higher than what many experts expected and show that the economy remains on a strong path.
What to Expect Next
RBI’s Monetary Policy Decision
The most important event on investors’ radar is the RBI’s interest rate decision, expected tomorrow. If the central bank lowers rates as expected, the market may continue its upward momentum. However, if the RBI keeps rates unchanged or gives a cautious outlook, there could be some profit booking.
Global Trends
Investors are also watching global economic data, oil prices, and interest rate moves in other countries, especially the United States. Any major global development could influence market direction.
Corporate Announcements
More companies are expected to announce new orders, partnerships, and quarterly updates in the coming weeks. These announcements could drive stock-specific movements.
Market Sentiment Positive but Cautious
Today’s stock market performance shows strong investor confidence, supported by gains in major sectors, positive global cues, and hopes of an RBI rate cut. Pharma stocks and Reliance Industries are leading the way, with support from other sectors like metals, auto, and infrastructure.
However, the market remains watchful of key events like the RBI policy decision and global economic updates. Traders and investors are advised to keep an eye on important levels and avoid aggressive buying at higher levels until more clarity emerges.
The overall mood remains positive, with a clear upward bias, as long as key support levels hold firm.
