Markets Rally as Sensex Surges 769 Points; Nifty Ends Just Below 24,850

Indian equities ended the week on a strong note, with both benchmark indices registering sharp gains during Friday’s session. The Sensex climbed 769.09 points or 0.95% to close at 81,721.08, while the Nifty 50 advanced 243.45 points or 0.99%, settling at 24,853.15 - just shy of the 24,850 mark.

The broader market also participated in the uptrend. The BSE Midcap index rose 0.50% to end at 44,861.42, and the BSE Smallcap index advanced 0.45%, closing at 51,521.42, indicating widespread buying across market segments.

Eternal, Adani Enterprises Among Top Movers

Leading the charge were shares of Eternal, which jumped nearly 4%, and Adani Enterprises, up 2%. Other notable gainers from the Sensex 30 pack included ITC, Power Grid, Axis Bank, Bajaj Finserv, and Adani Ports, lending significant support to the benchmarks.

Sun Pharma Drags on Profit Miss

On the downside, Sun Pharma was among the key laggards after posting a 19% year-on-year drop in Q4 net profit, primarily due to exceptional charges related to a U.S. settlement. Bharti Airtel also ended lower, capping some of the broader gains.

Sectoral Performance: FMCG, IT in Focus

Sectorally, the momentum was broad-based. FMCG and IT stocks were standouts, each posting around 1% gains. Varun Beverages surged over 3.5%, while peers such as ITC, Hindustan Unilever, and Godrej Consumer Products also ended firmly in the green.

On the tech front, the Nifty IT index saw all ten constituents close higher. Persistent Systems, Infosys, LTI Mindtree, and Oracle Financial Services were among the top performers.

Mixed Trends Across Broader Sectors

Non-alcoholic beverages, plastics, and auto stocks saw strong buying interest, rallying between 1–3%. Meanwhile, sectors such as textiles, packaging, fertilizers, and pharmaceuticals underperformed the broader market, ending either flat or in the red.

Current Market Update

• The Sensex is trading at 81,693.14. up by 741.15 points or 0.92%.
• The NSE Nifty 50 is trading at 24,843.80 up by 234.10 points or 0.95%.

Top 5 Gainers in the Market

• Eternal (ETERNAL)

• Opening Price: ₹229.12
• Current Market Price (LTP): ₹237.37
• Percentage Change: +3.65%

Eternal’s plan to cap foreign ownership at 49.5% aims to align with Indian regulations and enable Indian control, with strong shareholder backing. However, concerns linger over potential FII outflows and possible index exclusion in the near term.

• ITC Ltd. (ITC)

• Opening Price: ₹434.00
• Current Market Price (LTP): ₹436.90
• Percentage Change: +2.53%

ITC shares are up after the company reported a sharp surge in Q4 net profit driven by an exceptional gain from the hotel business demerger and announced a substantial final dividend, which outweighed concerns over muted core earnings and margin pressures.

• Powergrid (POWERGRID)

• Opening Price: ₹292.00
• Current Market Price (LTP): ₹297.85
• Percentage Change: +2.39%

Power Grid shares inch up as investors reacted positively to strong future capex guidance and robust earnings visibility, with recent analyst upgrades and buy recommendations supporting sentiment despite near-term operational challenges.

• SBI Life  (SBILIFE)

• Opening Price: ₹1765.00
• Current Market Price (LTP): ₹1779.40
• Percentage Change: +2.28%

SBI Life shares are trading higher as strong recent momentum and solid monthly returns boost investor confidence, with the company outperforming peers in the life insurance space and drawing fresh buying interest.

• Jio Financial Services  (JIOFIN)

• Opening Price: ₹274.95
• Current Market Price (LTP): ₹280.75
• Percentage Change: +2.26%

Jio Financial Services is witnessing an upswing as traders latch onto bullish technical cues, with recent moving average crossovers fueling momentum-based buying, even in the absence of fresh fundamental triggers.

Top 5 Losers in the Market

• Sun Pharma  (SUNPHARMA)

• Opening Price: ₹1658.00
• Current Market Price (LTP): ₹1673.40
• Percentage Change: -2.64%

Sun Pharma shares are under pressure today as investors react to a 19% year-on-year drop in Q4 net profit, weighed down by exceptional charges from a U.S. settlement, overshadowing the company’s revenue growth and triggering a sharp sell-off.

• Mahindra and Mahindra (M&M)

• Opening Price: ₹3020.00
• Current Market Price (LTP): ₹3005.70
• Percentage Change: -0.02%

M&M shares are trading in red mainly due to continued profit booking after a recent rally and concerns over slowing rural demand and rising input costs, which are impacting margins in the auto sector. 

On the opening bell, the Indian Benchmark Indices had a muted start. Sensex started at 80,967.34, 15 points (0.019%) higher than the last close of 80,951.99.Nifty 50 started at 24,636.30, an increase of 27 points (0.11%) from its last close of 24,609.70 in the opening first few minutes of trading.

However, as of 10.00 AM, the Indian benchmark indices, Sensex and Nifty 50, are  trading on a strong footing up by about 0.70% each, aided by strong buying in the IT stocks. 

Asia trades mixed as U.S. rate cut hopes counter fiscal jitters

Asian equity markets are trading mixed on Friday, tracking varied signals from Wall Street overnight. Easing U.S. Treasury yields and dovish commentary from a Federal Reserve official - who reiterated a potential path for rate cuts later this year - are lending some support to sentiment. However, investor caution persists amid growing concerns over the fiscal implications of the U.S. Republican tax cut bill, which could significantly deepen the federal deficit.

The U.S. House of Representatives passed the contentious legislation Thursday, sparking fresh worries about long-term debt sustainability and its potential to exacerbate stagflation risks, particularly in an environment already fraught with tariff uncertainty.

In Japan, the Nikkei 225 rebounded sharply in morning trade, reversing two days of losses. The index climbed above the 37,250 mark, buoyed by broad-based gains led by heavyweight exporters and tech stocks. By the midday break, the Nikkei stood at 37,280.84, up 294.97 points or 0.80%, after briefly dipping to an intraday low of 37,126.60. This follows a notable decline in the previous session.

U.S. stocks notch modest gains amid fiscal jitters and bond market volatility

U.S. equity markets ended slightly higher on Thursday, as investor sentiment found some support despite mounting fiscal concerns. The S&P 500 edged up 0.21% to close at 583.09, the Nasdaq Composite gained 0.71% to 514.00, and the Dow Jones Industrial Average inched up 0.05% to finish at 418.82. The uptick came as long-dated Treasury yields stabilized, following a sharp rise earlier in the week.

The rebound in yields offered some relief to equity markets, which have been under pressure from concerns over the fiscal trajectory of the U.S. government. The passage of the "One Big Beautiful Bill"  -  a sweeping tax measure expected to add $2.4 trillion to the federal deficit over the next decade  -  has triggered a surge in long-term borrowing costs. Yields on the 30-year bond climbed to their highest level in 19 months.

Adding to the caution, Moody’s recent downgrade of the U.S. credit outlook has intensified market unease. The prospect of sustained higher interest rates is raising concerns over consumer borrowing costs, mortgage rates, and broader economic momentum heading into the year-end.

Gold edges higher as U.S. fiscal concerns weigh on dollar

Gold prices firmed in early trade on Friday, supported by global safe-haven demand amid persistent worries over the U.S. fiscal outlook. On the Multi Commodity Exchange (MCX), June 5 gold futures were trading 0.10% higher at ₹95,612 per 10 grams as of 9:10 AM IST. Gains, however, were capped by subdued buying interest in the domestic spot market.

Globally, the yellow metal is on track to log weekly gains, buoyed by a weakening U.S. dollar and heightened caution around the economic impact of Washington’s newly passed tax legislation. The dollar index has fallen over 1% this week and is poised for its steepest weekly decline since April 7.

A softer dollar typically boosts gold demand, as it makes the metal more affordable for holders of other currencies. Investors are increasingly turning to gold as a hedge against potential economic instability and rising debt risks in the US.

Crude prices dip as stronger dollar, OPEC+ supply concerns weigh

Oil prices eased in early Asian trading on Friday, pressured by a firmer U.S. dollar and market speculation that OPEC+ may move to ramp up output. Brent crude futures slipped 37 cents to $64.07 a barrel, while U.S. West Texas Intermediate (WTI) dropped 39 cents to $60.81 as of 0015 GMT.

Both benchmarks are set to close the week lower, with Brent down about 2% and WTI off by 2.7%.

The U.S. dollar climbed on Thursday, buoyed by the House of Representatives' approval of President Trump’s sweeping tax and spending bill. A stronger dollar typically exerts downward pressure on oil prices, as it makes dollar-denominated crude more expensive for holders of other currencies.

Traders are also closely watching signals from OPEC+ regarding potential output hikes, which could further weigh on prices amid an already uncertain demand outlook.

Rupee opens stronger after recent slide, tracks softer oil and dollar

The Indian rupee opened marginally higher on Friday, recovering slightly from its sharp fall in the previous session, as lower crude oil prices and a weakening U.S. dollar offered some support. The local currency began the day at 85.97 per dollar, up 3 paise from Thursday’s close of 86.00  -  its weakest level in over a month.

Despite the early uptick, the rupee remains under pressure and is on track to post a weekly loss for the third consecutive week. So far in May, the currency has declined by 1.8%, according to Bloomberg data.

Persistent foreign institutional outflows from Indian equities continue to weigh on sentiment, driven by a narrowing yield differential between Indian and U.S. 10-year government bonds. On Thursday, the rupee breached the key 86.00 mark, triggering stop-losses from importers and compounding the downward move.

Foreign Institutional Investors (FIIs) continued their selling streak, offloading equities worth ₹5,045 crore on Thursday  -  marking the third significant sell-off in the last four sessions.

Stocks in Focus

• ITC Ltd. reported a consolidated net profit of ₹19,807 crore, much higher after a ₹15,145 crore exceptional gain from its hotel business demerger.
• Sun Pharma posted an 8.1% revenue growth to ₹12,958.8 crore.
• Grasim Industries recorded a narrowed net loss of ₹288 crore.
• Concor's net profit fell 1.6% to ₹298.5 crore.
• HFCL reported a ₹81.4 crore loss due to sluggish optical fibre cable demand.
• Gujarat State Petronet's profit declined 53.6% to ₹220.3 crore.
• Ramco Cements reported a sharp 74.5% decline in profit to ₹31 crore. 
• NTPC Green Energy Ltd. emerged victorious in a major e-reverse auction organized by NHPC Ltd.

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