Sensex jumps 421 points, Nifty gains over 100 as Asian markets rally

NEW DELHI: Indian equity benchmarks started the month of June on a positive note today, opening in green as favourable global cues and strong sentiment across Asian markets helped domestic indices recover from the previous session’s correction. The BSE Sensex stood at 75,196.96 points, up by 421.22 points, or 0.56 per cent, while the NSE Nifty 50 stood at 23,651.70 points, gaining 103.95 points, or 0.44 per cent.

The positive domestic opening kept in trend across regional peers, including notable advances in Japan, Hong Kong, and South Korea. At the time of filing, the GIFT Nifty stood at 23,714.00 points, up 0.10 per cent, Japan’s Nikkei 225 jumped 0.74 per cent to 66,820.00 points, Hong Kong’s Hang Seng index gained 0.82 per cent to 25,388.00 points, and South Korea’s KOSPI surged 4.14 per cent to 8,842.58 points. In contrast, the Shanghai Composite drifted lower by 0.12 per cent to 4,063.72 points.

Rajesh Palviya, Head of Research, Axis Direct, said, “Asian markets have started the week on a firm footing, led by gains in Japan, Hong Kong, and South Korea, while GIFT Nifty indicates a positive opening for Indian equities. The resilience in global equities and improving sentiment across Asian markets could help domestic benchmarks recover from Friday’s corrective move”.

However, Palviya mentioned that investors will continue to monitor crude oil prices, which have moved higher amid uncertainty surrounding US-Iran ceasefire negotiations. While elevated crude remains a near-term concern, the broader market undertone remains constructive as long as key support zones hold.

Market analysts highlighted that the domestic indices face key technical thresholds that will determine the sustainability of the opening momentum. Shrikant Chouhan, Head Equity Research, Kotak Securities noted that as long as Nifty trades below the 50-day SMA of 23,700 and for Sensex 75,300, the weak sentiment is likely to continue.

“On the downside, the market could slip to 23,300-23,200/74,100-73,800. Further downward movement may also continue, potentially dragging the index to 23,050-23,000/73,300-73100. On the upside, above the 50-day SMA of 23,700 and for Sensex 75,300, a bounce back could extend till 23,800/75,900. If it crosses 23,800/75,900, the index could move towards 24,000-24,100/76,500-76,800,” Chouhan said. “Given the current market volatility, level-based trading would be the ideal strategy for traders”.

Manav Modi, Commodities Analyst Motilal Oswal Financial Services Ltd said, “Gold prices traded steady as investors balanced ongoing uncertainty surrounding US-Iran ceasefire negotiations against rising inflation concerns and expectations of tighter monetary policy.”

At the time of filing, Brent crude traded at USD 93.08 per barrel, up 2.15 per cent, and crude oil rose 2.57 per cent to USD 89.61 per barrel. Simultaneously, gold prices fell 0.65 per cent to USD 4,511.67 per ounce.

“While reports suggest US and Iran continue discussions on extending the current truce and reopening the Strait of Hormuz, key disagreements remain unresolved and any final agreement still requires approval from President Trump. At the same time, Israel has expanded military operations against Hezbollah in Lebanon, keeping geopolitical risks elevated across the region,” Manav Modi said.

He noted that despite gold’s traditional safe-haven appeal, the metal has struggled to gain momentum as higher crude oil prices continue to fuel inflation concerns.

Oil prices also rebounded after Israel’s latest military actions, reinforcing fears that energy costs could remain elevated and force the Federal Reserve to maintain a hawkish stance. Markets are increasingly pricing in the possibility of a Fed rate hike later this year, while the U.S. Dollar Index and Yields also strengthened.

“On the data front, China’s private manufacturing PMI for May came in stronger than expected, supported by resilient domestic and export demand. This week, market participants will closely monitor PMI readings from major economies, US labour market data, and the RBI’s interest rate decision for further direction in precious metals,” Modi mentioned. (ANI)