Sensex rises over 250 points, Nifty above 24,600: Positive global cues among key factors behind market rise

Sensex, Nifty rebound in Wednesday's trading session. 

The benchmark equity indices rebounded on Wednesday, recovering from a three-day losing streak, supported by firm global cues and investor optimism around possible policy easing by the Reserve Bank of India (RBI) this Friday.

The Sensex climbed 260.74 points, or 0.32 percent, to settle at 80,998.25. During the day, jumped 349.78 points, or 0.43 per cent, to 81,087.29. The NSE Nifty went up 77.70 points, or 0.32 per cent, to 24,620.20.

Shares of ETERNAL, Jio Financial Services, Bharti Airtel, Tata Motors and Tech Mahindra were among the notable gainers, advancing up to 3 percent during the session.

Key Factors Behind Market Rebound

1. Positive Global Sentiment: In Asian equity markets, South Korea’s Kospi, Japan’s Nikkei 225, China’s Shanghai Composite and Hong Kong’s Hang Seng index trading in the green. Overnight, US markets closed higher and Futures pointed to a strong opening on Wall Street, further bolstering sentiment on Dalal Street.

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2. Hopes of De-escalation in US-China Trade Tensions: Markets took note of a likely phone conversation between US President Donald Trump and Chinese President Xi Jinping this week. The development comes after Trump accused China of breaching a previous trade agreement. Investors are hopeful that fresh dialogue could ease tensions between the two major economies, aiding global trade sentiment.

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3. Expectations of Another Rate Cut by RBI: Anticipation of another 25 basis points rate cut in the RBI’s Monetary Policy Committee (MPC) meeting outcome on June 6 also supported the rally.

According to a Moneycontrol poll, economists and treasury heads expect a third straight repo rate cut after similar actions in February and April.

"With consumer inflation remaining moderate, there is still room for two more rate cuts in 2025," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He added that while bank margins may come under pressure, leading private lenders are well positioned to deliver 12–15 per cent returns over the next year.

MPC Poll | RBI likely to cut repo rate by 25 bps in June policy

Broader markets also participated in the rally with positive breadth seen across sectors, particularly in financials, telecom, IT and auto stocks.

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