The Indian stock market witnessed a remarkable rally, with benchmark indices Sensex and Nifty50 posting significant gains. This surge comes amid easing U.S. Treasury yields and a broadly stronger Asian market, despite ongoing global fiscal uncertainties.
🔍 Market Highlights
Sensex: Climbed over 900 points, reaching 81,811.19, marking a 1.06% increase.
Nifty50: Surged past the 24,850 mark, closing at 24,885.75, a rise of 276 points or 1.12%.
Top Performers: ITC, Infosys, Power Grid, and HCL Tech led the gains.
Sectoral Gains: IT and consumer stocks were the primary drivers of the rally.
Notable Decline: Sun Pharma was the only Nifty50 constituent to register a decline during this period.
🌐 Global Influences
The rally in Indian equities is influenced by several global factors:
Easing U.S. Treasury Yields: A decline in U.S. yields has improved investor sentiment towards emerging markets.
Asian Market Strength: Broad gains in Asian markets have provided a positive backdrop for Indian equities.
U.S. Fiscal Uncertainties: Despite the rally, concerns over U.S. fiscal policies and mixed earnings reports continue to loom.
📊 Sectoral Performance
Information Technology: IT stocks rebounded, reflecting investor confidence in the sector’s growth prospects.
Consumer Goods: Companies like ITC saw significant gains, buoyed by strong demand and positive market sentiment.
Pharmaceuticals: The pharma index declined by 0.5%, with Sun Pharma falling 3.3% following reduced earnings forecasts
💡 Investment Insights
Market analysts have provided the following stock recommendations for investors:
NMDC: Strong fundamentals and favorable market conditions make it a top pick.
Polyplex Corp: Expected growth in its sector positions it as a potential high-return stock.
For investors seeking affordable options, experts suggest the following stocks under ₹100:
GMR Airports: Buy at ₹88, Target ₹96, Stop Loss ₹85.
Tracxn Technologies: Buy at ₹62-₹63, Targets ₹65-₹72, Stop Loss ₹60.50.
Meghmani Organics: Buy at ₹79-₹80, Targets ₹82-₹90, Stop Loss ₹77.
Jagran Prakashan: Buy on dips at ₹74.20, Target ₹77, Stop Loss ₹72.70.
Morepen Laboratories: Buy at ₹65, Target ₹73, Stop Loss ₹60.
📰 Current Affairs Impacting Markets
India-Oman Trade Pact: India and Oman are nearing the finalization of a Comprehensive Economic Partnership Agreement (CEPA), aiming to strengthen economic ties and facilitate smoother trade and investment flows.
Chagos Treaty: India welcomed the signing of the Chagos Islands treaty, highlighting its commitment to regional stability and maritime security.
Sensex Reshuffle: BSE announced the inclusion of Trent and Bharat Electronics in the benchmark Sensex, replacing IndusInd Bank and Nestle India, effective June 23.
📅 Notable Events
International Day for Biological Diversity: Observed on May 22, emphasizing the importance of biodiversity and sustainable development.
Mizoram Achieves Full Literacy: Mizoram has been declared the first fully literate state in India, marking a significant milestone in the nation’s educational progress.
