The Indian equity markets extended their gains for the second consecutive session on Thursday June 5 2025, with the BSE Sensex rising 443.79 points and the Nifty50 climbing 130.70 points, buoyed by buying in heavyweight stocks like ICICI Bank and Reliance Industries and fresh foreign institutional investor FII inflows.

The 30-share BSE Sensex ended at 81442.04, gaining 0.55 percent. During the day, it surged by as much as 912.88 points or 1.12 percent to touch an intraday high of 81911.13. The NSE Nifty also advanced by 0.53 percent, settling at 24750.90, tracking gains in financials, energy, and FMCG counters.

ICICI Bank and Reliance lead blue-chip rally

Among the Sensex pack, Eternal emerged as the top gainer with a 4.50 percent jump, followed by Power Grid, ICICI Bank, Reliance Industries, UltraTech Cement, Adani Ports, Sun Pharma, ITC and Hindustan Unilever, all of which posted solid gains.

On the flip side, IndusInd Bank, Axis Bank, Bajaj Finserv, and Bajaj Finance were among the prominent laggards in the session.

Market participants attributed the rally to continued buying in blue-chip stocks, especially ICICI Bank and Reliance, and positive sentiment from global markets, coupled with expectations of supportive monetary policy action by the Reserve Bank of India RBI.

FIIs turn net buyers ahead of RBI policy outcome

Foreign Institutional Investors FIIs turned aggressive buyers on Wednesday June 4, pumping in 1076.18 crore rupees into Indian equities, according to provisional exchange data. This fresh infusion of foreign funds supported the market uptrend.

In global markets, Asian indices such as South Korea's Kospi, Shanghai Composite, and Hong Kong's Hang Seng ended on a positive note. However, Japan's Nikkei 225 ended in the red. European markets were seen trading higher during the mid-session.

Meanwhile, US markets had a mixed close on Wednesday, reflecting caution ahead of critical economic events and trade policy developments.

Focus shifts to RBI monetary policy and global risks

The RBI Monetary Policy Committee MPC, chaired by Governor Sanjay Malhotra, commenced its three-day policy meeting on Wednesday June 4, with the outcome scheduled to be announced on Friday June 6.

There are growing expectations in the market of a 25 basis points rate cut, and in some corners even a jumbo 50 basis points cut, to boost economic momentum amid global uncertainties triggered by tariff moves from former US President Donald Trump.

Experts believe that any move by the RBI to cut rates will likely provide further fuel to the market rally, particularly in rate-sensitive sectors like banking, housing, and auto.

Brent crude ticks higher global backdrop mixed

On the commodities front, the global benchmark Brent crude rose by 0.35 percent to 65.14 dollars per barrel, adding to inflationary concerns but also signalling robust global demand recovery.

Despite some global economic uncertainties, investor mood remained upbeat, anticipating central banks including the RBI to take pro-growth steps. The market is also awaiting key data from the US labour market and inflation indicators later this week.

Previous session recap and outlook

On Wednesday June 4, the BSE Sensex had gained 260.74 points or 0.32 percent to close at 80998.25, while the Nifty rose by 77.70 points or 0.32 percent to settle at 24620.20. The continued uptrend on Thursday has now positioned both indices close to fresh all-time highs.

Market analysts suggest that the broader sentiment remains bullish, with near-term movements likely to be dictated by the RBI policy stance, foreign fund flows, and global macroeconomic signals

The Upcoming IPOs in this week and coming weeks are Jainik Power Cables, Sacheerome Limited, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are Ganga Bath Fittings.

The Closed IPOs are 3B Films.