Sensex climbs 300 points ahead of RBI MPC decision, Nifty above 22,900

The has gained 4.3% over the last two sessions, continuing its recovery from a steep plunge on Tuesday after Prime Minister Narendra Modi's alliance won the general elections by a surprisingly slim majority.

From the Sensex pack, , , , , and HCL Tech were the top gainers in early trade, while IndusInd Bank, L&T, ITC, HUL, and Kotak Mahindra Bank opened with cuts.

On the sectoral front, Nifty IT surged 1.9%, led by gains in Coforge, , and Persistent Systems. Nifty Realty, Consumer Durables, Oil & Gas, PSU Bank, and Metal sectors also gained between 0.5% and 0.8%.

Among individual stocks, RVNL rose nearly 4% after the company received a Letter of Award from National Thermal Power Corporation (NTPC) for a Project Execution Agency (PEA) contract worth Rs 495 crore.

Experts View
"In the near-term, the market is likely to be weighed down by the huge which has touched Rs 24960 crores cumulatively during the last three days. Therefore the largecaps in sectors like financials and IT where FIIs have huge assets under management may underperform. This trend will change when FIIs turn buyers, which is inevitable," said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

"Today’s meet is not expected to impact the market since any rate action by the MPC is unlikely," said Vijayakumar.

Deven Mehata, Research Analyst at Choice Broking, said, "Nifty can find support at 22,700 followed by 22,600 and 22,500. On the higher side, 22,900 can be an immediate resistance, followed by 22,950 and 23,000."


Asian stocks are set to snap a two-week losing streak on Friday after major central banks kick-started their rate easing cycle this week, adding to expectations the U.S. Federal Reserve could soon follow suit.

MSCI's broadest index of Asia-Pacific shares outside Japan tracked world stocks higher and rose 0.3% in early Asia trade. The index was headed for a weekly gain of nearly 3%.

Hong Kong's Hang Seng Index similarly ticked up 0.14%, while Chinese blue chips edged 0.23% higher. Japan's Nikkei fell 0.16%.

FII/DII Tracker
Foreign institutional investors (FIIs) continued their selling for a third consecutive session on June 6 as they offloaded Indian equities worth Rs 6,867.7 crore, while domestic institutional investors bought equities worth Rs 3,718.38 crore on the same day.

Crude Oil
Oil prices ticked higher on Friday, as reassurances from OPEC+ members Saudi Arabia and Russia indicating readiness to pause or reverse output agreements, but markets were headed for their third straight weekly losses.

Brent crude futures rose 2 cents to $79.89 per barrel and U.S. West Texas Intermediate crude futures rose 4 cents to $75.59.

Currency Watch
The Indian rupee was little changed on Friday while dollar-rupee forward premiums edged lower ahead of the Reserve Bank of India's monetary policy decision.

The rupee was at 83.4750 against the U.S. dollar, barely changed from its close of 83.4725 in the previous session.

(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)