Markets open higher despite global headwinds 

The markets opened on a positive note on Thursday morning. The Sensex opened at 81,196.08, and is currently trading at 81,387.48, up 389.23 points or 0.48 per cent from its previous close of 80,998.25. The Nifty also edged higher, rising 121.85 points or 0.49 per cent to 24,742.05 at 9.40 am, after opening at 24,691.20, compared to its previous close of 24,620.20. The modest opening comes amid mixed global cues and mounting economic uncertainties.

Pharmaceutical stocks led the morning rally, with Dr Reddy’s Laboratories surging 2.20 per cent to ₹1,279.40 and Cipla advancing 1.61 per cent to ₹1,495.60. Retail major Trent also gained momentum, rising 1.53 per cent to ₹5,591.00, while Adani Ports climbed 1.52 per cent to ₹1,458.00. However, financial stocks faced pressure, with Bajaj Finance declining 0.65 per cent to ₹8,928.50 and Bajaj Finserv slipping 0.24 per cent to ₹1,951.40.

“The benchmark Sensex and Nifty indices are expected to open on a flat note on June 5, following GIFT Nifty trends indicating a gain of 02 points for the broader index,” said Hardik Matalia, Derivative Analyst at Choice Broking. “After a flat opening, Nifty can find support at 24,600, followed by 24,400 and 24,450.”

Market analysts remain cautiously optimistic despite global headwinds. “Nifty rebounded yesterday, though momentum stocks lagged. Mid-cap (+0.89 per cent) and small-cap (+0.79 per cent) indices showed strength,” noted Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd. Foreign Institutional Investors turned net buyers on Wednesday, purchasing equities worth ₹1,076 crore after three days of selling, while Domestic Institutional Investors extended their buying streak to 12 days with purchases of ₹2,566 crore.

The positive opening comes despite concerns about slowing global growth and geopolitical tensions. “Both geopolitical and economic news are likely to weigh on markets in the near-term. A serious concern is a potential Russian retaliation to the recent Ukraine attacks on Russian planes,” warned Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd. “The major economic news is the sharp dip in the US ISM PMI data. This indicates that the US economy is slowing down sharply.”

Railway stocks continued their recent outperformance, building on Wednesday’s gains, when shares of railway companies soared on government orders and anticipation of increased capital expenditure. “On Wednesday, shares of railway companies soared, driven by recent government orders in the sector and anticipation of an increased capex push. Ircon International and RailTel Corporation of India shares surged over 12 per cent in the latest session,” said VLA Ambala, Co-Founder of Stock Market Today.

Technical indicators suggest the market remains in a consolidation phase. “The Nifty ended higher yesterday and the India Vix fell nearly 5 per cent, which bulls would have liked to see. 24462 remains intact and that’s keeping optimism alive,” observed Akshay Chinchalkar, Head of Research at Axis Securities. The India VIX, a measure of market volatility, declined 4.89 per cent to 15.7450, indicating reduced fear among investors.

Banking stocks showed a mixed performance in early trade. “For the Bank Nifty, support is at 55300 and resistance is at 55800. A break above 55800 could push the market up to 56000 and 56150 again,” said Shrikant Chouhan, Head, Equity Research at Kotak Securities. “Conversely, a break below 55300 may lead to a re-test of the 55000-54900 levels.”

Commodities markets reflected global uncertainty, with bullion trading near record highs. “Caution continues to dominate the bullion market as multiple factors could influence price movements in either direction. Gold is currently trading near record highs, driven by bargain hunters aiming to capitalise on ongoing uncertainties surrounding trade relations between the US, China, and the European Union,” said Aksha Kamboj, Vice-President at the India Bullion and Jewellers’ Association.

Energy markets faced pressure from oversupply concerns. “Crude oil slipped below $63 as concerns about global oil oversupply intensified. Saudi Arabia is advocating for a substantial OPEC+ production increase in August, aiming to secure greater market share during peak demand,” noted Rahul Kalantri, VP Commodities at Mehta Equities Ltd.

Looking ahead, investors are positioning for key events, including the RBI monetary policy decision on June 6 and the US Federal Reserve meeting on June 17-18. “Key triggers ahead include the RBI policy on June 6 and the US Fed meet on June 17–18. Technically, Nifty remains resilient but must break 24851 to confirm strength,” Tapse added.

The current market structure suggests continued range-bound trading in the near term. “We believe that the current market structure is non-directional, and the intraday trend indicating range-bound activity is likely to continue in the near future,” Chouhan emphasized. “For traders, key levels to watch are 24,450 and 24,700.”

Despite global uncertainties, market participants are maintaining a buy-on-dips strategy, with focus on rate-sensitive sectors ahead of expected policy easing. “Buy on dips continues to be the ideal strategy now. Rate sensitives will be preferred in view of the expected rate cut by the MPC on 8th June,” Vijayakumar concluded.

Published on June 5, 2025