India’s share market indices, Sensex and Nifty50, ended the day’s trade in green on Thursday, June 5, 2025. The Sensex (index with top 30 firms) surged 443.79 points to close at 81,442.04 on Thursday. Meanwhile, Nifty50 (index with top 50 firms) was up 130.70 points to close at 24,750.90 points.
Moreover, the market experts believe that the investors are buoyed by the hopes of developments in the India-US trade deal and a rate cut by the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI).
On the investment front, good news for the financial markets is that foreign portfolio investors (FPIs) have turned net sellers in Indian stock markets for the second straight month in May. FPIs had fuelled the latest bull run in the stock market after a sharp slump.
May global foreign portfolio investment (FPI) flow numbers are showing India as a top inflow destination. May inflows were led by Taiwan ($7.5 billion inflows), India ($2.3 billion inflows), and Brazil ($2 billion inflows) out of a total EM ex-China inflow of $13.3 billion in May.
Going ahead, investors now await further updates on India-US trade deal negotiations and the RBI monetary policy outcome on Friday. Indian stock markets outperformed global markets over the past few weeks, as volatility continued to reign in global markets over possible forthcoming US reciprocal tariffs. A comfortable inflation number in India also somewhat supported the domestic equity indices.
What Else For Share Market?
“Indian markets are also sideways, with the RBI MPC meet outcome on Friday being watched closely. The consensus expectation is for a 25 bps rate cut by an accommodative stance positioned RBI,” said Ajay Bagga, Banking and Market expert.
“Looking at YTD FPI flows, India has seen outflows of $9.9 bn out of a total $40 bn outflow YTD from all EM ex China. The May inflows, along with the 9% fall in the US dollar index YTD, are raising hopes for a gradual revival in FPI flows to the EMs. India, which made up around a quarter of inflows YTD, should benefit from the FPI flow turnaround,” he further added.
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