Kolkata: The Indian stock market indices Sensex 30 and Nifty 50 staged a smart recover in the later hour of trade on Monday, June 2. Will the recover continue on Tuesday with RBI rate cut hopes round the corner? That’s the key question on the morning of June 3.
After a tepid start on June 2, the Indian equity market indices staged a remarkable recovery in the later hours just 77.26 points or 0.09% lower at 81,373.75 points. Nifty 50 declined 34.10 points or 0.14% to settle at 24,716.60 at the end of the session. The metal stocks came under a lot of selling pressure after US President Donald Trump declared plans to double tariffs on steel and aluminium imports to 50%.
The cues of Tuesday
Among the cues that could play in the minds of investors is the third rate cut in succession by the Reserve Bank this week. It cut Repo Rate by 25 basis points in February and April. If expert agencies are to be believed, RBI would certainly cut rates by another 25 basis points this week that can even go up to 50 basis points to push consumption, which was the original objective when the rate cuts started in February. The finance minister Nirmala Sitharaman also announced steep income tax cut relaxations to spur growth by boosting consumption. The easing inflation has triggered hopes of the rate cut this month.
On Monday, the GDP growth numbers for Q4 FY25 was announced at 7.4%. Though it was lower compared to 8.4% recorded in Q4 of FY24, the figure was broadly in line with market expectations.
The Indian rupee rose 16 paise against the US Dollar to settle at 85.39 against the greenback on Monday. A weak American currency and hopes of reduction in Repo Rate fuelled the rise, which could have been sharper had it not been for the volatile equity markets and outflow of FPI investment and higher crude oil prices.
Global markets
Two of the US indices S&P500 and Nasdaq ended 0.41% up and 0.67% up respectively on June 2 while Dow Jones declined 0.24% at the end of the session. FTSE close din the green while French CAC and German DAX ended in the red.
GIFT Nifty was trading in the green (0.32%) on June 3 morning. The Asian indices were mainly in the green. Nikkei, Hang Seng, Taiwan Weighted and Shanghai Composite were in the green, while Djakarta Composite was in the red.
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The Indian stock market indices Sensex 30 and Nifty 50 staged a smart recover in the later hour of trade on Monday, June 2. Will the recover continue on Tuesday with RBI rate cut hopes round the corner? Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
