Market wrap, June 4: SENSEX, NIFTY snap three-day losing streak on hopes of rate cut from RBI

The Indian equity benchmarks snapped their three-day losing streak on Wednesday, June 4, on expectations of interest rate cut by Reserve Bank of India after its six-member Monetary Policy Committee (MPC) began its bi-monthly meet today. The SENSEX rose as much as 350 points and NIFTY50 index touched an intraday high of 24,644 led by index heavyweights like HDFC Bank, Reliance Industries, Bharti Airtel, Eternal and Infosys.

The SENSEX ended 261 points higher at 80,998 and NIFTY50 index advanced 78 points to close at 24,620.

Expectations of rate cut

The Reserve Bank's rate-setting panel started its three-day brainstorming on monetary policy as expectations are high of a 25 bps or even a jumbo 50 bps rate cut to fuel economic growth amid uncertainties created by Trump's tariff moves.

The decision of the MPC, headed by Reserve Bank Governor Sanjay Malhotra, will be announced on Friday.

The RBI reduced the key interest rate (repo) by 25 bps each in February and April, bringing it to 6 per cent.

This could be the third back-to-back reduction in the short-term benchmark lending rate.

Sectoral picture

Most of the sector gauges compiled by the National Stock Exchange ended higher led by the NIFTY Oil & Gas index's 0.7% gain. NIFTY Auto, IT, PSU Bank, Metal, Consumer Durables and Healthcare indices also rose between 02%-06%.

On the other hand, select financial services and real estate shares witnessed selling pressure.

Broader markets outperform

Broader markets outperformed their larger peers as NIFTY Midcap 100 index rose 0.71% and NIFTY Smallcap 100 index climbed 0.8%.

RVNL was top gainer in the NIFTY Midcap 100 index, the stock rose 6.86% to close at ₹431 on the back of heavier than usual trading volumes. Trading volumes in RVNL shares spiked by 4.5 times to 4.11 crore shares against an average of 90.81 lakh shares.

On flipside, Aditya Birla Fashion and Retail was top loser in the NIFTY Midcap 100 index, the stock fell 10.37% to close at ₹77 as reports suggested that Flipkart likely sold shares worth ₹600 crore in trade on Wednesday.

NIFTY 50 gainers and losers

Eternal was top gainer in the NIFTY50 index, the stock rose 3.21% to close at ₹245. Jio Financial Services (2.36%), IndusInd Bank (1.79%), Tata Motors (1.78%), Bharti Airtel (1.72%) and Bharat Electronics (1.28%) were also among the gainers.

On the flipside, Bajaj Finserv (-1.63%), Trent (-1.43%), Eicher Motors (-1.01%), Shriram Finance (-0.96%) and Axis Bank (-0.83%) were among losers in the NIFTY50 index.

The overall market breadth was marginally positive as 2,071 shares ended higher while 1,933 closed lower on the BSE.