Nifty Top Gainers and Losers on June 5: Eternal Surges as Markets Rally Ahead of RBI Rate Cut

Mumbai, 5th June – Indian equity benchmarks extended gains for the second consecutive session on Thursday, June 5, driven by growing market optimism ahead of the Reserve Bank of India’s (RBI) upcoming policy announcement. The BSE SENSEX rose as much as 913 points during intraday trade before settling 444 points higher at 81,442. The NSE NIFTY50 index reached an intraday peak near 24,900 and closed 131 points up at 24,751, inching closer to the psychological 25,000 level.

Strong buying interest was visible in heavyweight stocks such as Reliance Industries, ICICI Bank, HDFC Bank, ITC, Power Grid, and Eternal Ltd., all of which contributed significantly to the market rally. Investors remain hopeful that the RBI’s Monetary Policy Committee (MPC) will announce another cut in the repo rate on Friday, marking the third consecutive reduction since February.

The key lending rate currently stands at 6%, following two earlier cuts of 25 basis points each in February and April. Expectations are for either another 25 basis points or a larger 50 basis points cut, aimed at supporting economic growth amid ongoing global trade uncertainties and domestic demand challenges

Key Market Drivers

• Eternal Ltd. recorded the highest gains among NIFTY 50 stocks, advancing 4.53% to ₹257. The rise was supported by a favorable outlook from international investment firms, which boosted investor confidence.
• Dr. Reddy’s Laboratories increased 3.05% to ₹1,290 following news of a strategic partnership with Alvotech to jointly develop, manufacture, and commercialize a biosimilar version of the cancer drug Keytruda for global markets.
• Trent Ltd. posted a 3.15% gain, supported by steady momentum in retail stocks amid improving consumer sentiment.
• Power Grid Corporation and ICICI Bank rose 2.45% and 2.10%, respectively, benefiting from expectations of an easing monetary policy and strong recent financial performance.
• On the downside, IndusInd Bank and Tata Consumer Products dropped 1.37% each amid profit booking and cautious investor positioning.
• Other private sector banks such as Axis Bank, Bajaj Finserv, and Bajaj Finance declined marginally, reflecting sector rotation and some risk reduction after recent gains.

Market breadth was positive with 2,257 shares advancing and 1,725 declining on the BSE, indicating broad-based buying interest across sectors.

Bottomline

Indian equity markets ended on a positive note for the second day, propelled by expectations of an RBI rate cut to support economic growth amid global and domestic uncertainties. The SENSEX and NIFTY50 showed resilience, led by gains in financials, real estate, pharma, and IT sectors. Broader markets outperformed, signaling sustained risk appetite among investors.

With the RBI’s Monetary Policy Committee decision due on Friday, markets are poised for potential volatility as investors weigh the size and guidance of the policy move. The pace of gains may moderate as participants digest fresh macroeconomic data, corporate earnings, and the central bank’s stance.

Going forward, sectors sensitive to interest rates and economic growth are likely to be in focus, while investors remain watchful for cues on inflation, liquidity, and global trade developments.