Indian equity benchmarks opened on a strong note on June 1, with the BSE Sensex surging 427 points to trade above 78,000, while the NSE Nifty 50 climbed above 23,650, driven by robust buying in IT stocks and positive global cues.
Market Opening Bell: Key Indices
The 30-share BSE Sensex jumped 427.32 points to 78,124.56 in early trade, while the broader NSE Nifty 50 advanced 131.65 points to 23,668.80. The rally was broad-based, with all sectoral indices trading in the green.
IT Stocks Lead the Rally
The Nifty IT index surged over 2%, emerging as the top gainer among sectoral indices. Major IT heavyweights such as Infosys, Tata Consultancy Services (TCS), HCL Technologies, and Wipro witnessed strong buying interest. Infosys rose over 3%, while TCS gained 2.5% in early deals.
Analysts attributed the rally in IT stocks to optimism around a potential rate cut by the US Federal Reserve later this year, which could boost demand for Indian IT services. Additionally, the easing of geopolitical tensions in the Middle East provided further support to risk sentiment.
Positive Global Cues Boost Sentiment
Asian markets traded higher on Tuesday, tracking overnight gains on Wall Street. Japan's Nikkei 225 rose over 1%, while South Korea's Kospi and China's Shanghai Composite also posted gains. The positive global mood was driven by hopes of a US interest rate cut and easing inflation concerns.
Back home, foreign institutional investors (FIIs) turned net buyers in the previous session, which also bolstered domestic sentiment. According to exchange data, FIIs purchased equities worth Rs 1,245 crore on May 31.
Sectoral Performance
Apart from IT, other sectoral indices also performed well. The Nifty Bank index gained 0.8%, while auto, metal, and pharma stocks advanced between 0.5% and 1.5%. The broader markets also participated in the rally, with the BSE Midcap and Smallcap indices rising over 1% each.
Among individual stocks, Reliance Industries, HDFC Bank, and ICICI Bank were the top contributors to the Sensex gains. Meanwhile, Bajaj Finance and Maruti Suzuki also traded higher.
Expert View
Market analysts said that the rally was driven by a combination of factors, including strong global cues, FII buying, and expectations of a rate cut. "The near-term outlook remains positive, with the Nifty likely to test the 23,800 level in the coming days," said a senior analyst at a domestic brokerage firm. However, they cautioned that volatility could increase ahead of the upcoming US inflation data and the Federal Reserve meeting.
Technical Outlook
From a technical perspective, the Nifty has formed a bullish candlestick pattern on the daily chart, indicating strength. The immediate resistance is placed at 23,750, while support is at 23,500. The Relative Strength Index (RSI) is hovering near 60, suggesting room for further upside.
Overall, the market breadth was positive, with 1,800 stocks advancing against 1,200 declining on the BSE. As the trading session progresses, investors will watch for any further triggers from global markets and domestic economic data.
