Markets Jump as Rate Cut Hopes Lift Sensex by 400+ Points, Nifty Above 24,750

Sensex Soars 400+ Points, Nifty Crosses 24,750 on Rate Cut Optimism

Written by: Supriya Kadu

Edited by: Pinky Deshmukh

Last Updated: June 05, 2025

Summary: The Indian stock markets surged on June 5, with the Nifty hitting 24,750 and the Sensex rising nearly 400 points.

The Indian financial markets had a great start on June 5, 2025, with both market indices showcasing significant early gains in trading. The Sensex increased 429 points to 81,427, while the Nifty gained 130 points to close above 24,750.

This upward trend was supported by rising hopes that the Reserve Bank of India (RBI) will make another rate cut at its next policy meeting. Investors expect a 25 basis point drop, likely the third in a row, as part of efforts to promote economic growth.

Positive signs from foreign markets also strengthened investor confidence. Asian stock markets, particularly in Hong Kong and South Korea, rose sharply, boosting domestic equities. Furthermore, rising foreign investment in Indian markets boosted the surge.

Sector-wise, all 13 major indices began in the green. Oil and gas, pharmaceutical, telecom, and real estate companies led the gains, each advancing by 0.5% to 1%. Midcap and smallcap equities also witnessed strong demand.

According to market experts, the Nifty may continue to trade between 24,000 and 25,000 in the short term. A move above 25,000 could indicate further gains, while a slide below 24,500 could prompt selling.

Now that the RBI's rate decision is drawing near, everyone is watching to see how the central bank views growth and inflation in the current economic environment.