India’s benchmark share market indices, Sensex and Nifty50, started the day’s trade with marginal gains on Wednesday, June 4, 2025. The Sensex (30 firms index) surged 40.14 points to open at 80,777.65 on Wednesday. Meanwhile, Nifty50 (index with top 50 firms) was up 17.95 points to open at 24,560.45 points.
Indian stock markets remained in a consolidation phase on Wednesday, with investors adopting a cautious yet optimistic stance amid global developments and pending domestic policy decisions that are likely to impact market sentiment.
Meanwhile, Foreign Portfolio Investor (FPI) activity has also remained weak. FPI numbers have been negative for the first two days of the week due to block deals, which remain a headwind for the markets. However, the anticipation of a rate cut by the Reserve Bank of India (RBI) on Friday is lending support to the bullish sentiment.
In the broader market, indices were trading positive. The Nifty 100 gained 0.18%, Nifty Midcap rose by 0.25%, and Nifty Smallcap advanced by 0.29%. Meanwhile, market volatility declined as the India VIX index dropped by 1.54%. Sector-wise, all sectors on the NSE opened with gains except Nifty Consumer Durables, which saw a marginal decline. Nifty Auto gained 0.32%, Nifty FMCG rose by 0.23%, and Nifty IT was up by 0.19%. Nifty Media and Nifty Pharma each gained 0.25% and 0.26% respectively. The Nifty Metal was flat but ended slightly higher with a gain of 0.5%.
What Else For Share Market?
Market experts believe that the cautious momentum in Indian equities is a reflection of global cues and profit-booking by domestic promoters.
Ajay Bagga, Banking and Market Expert, told ANI, “Hopes are rising for announcement of trade deals and for a Trump-Xi call later this week which could set the stage for some US-China detente on trade and tariffs.”
He added that the US markets have stayed resilient, rising for the second straight session despite concerns around tariffs, as retail investors continue to buy on dips. Bagga pointed out that Indian markets are also responding to mixed signals. “India has seen over $5 billion in sales by promoters taking money off the table, which is a bit sobering for market sentiment. However, in a $5 trillion market, this is small change from the overall perspective,” he said.
“India’s attractiveness as a strong macro with an easing monetary bias, with RBI expected to cut rates on Friday once more, stays a strong factor,” added Bagga.
With global cues remaining mixed and RBI’s policy announcement around the corner, markets may continue this range-bound movement in the coming sessions.
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