Sensex, Nifty end at record high on Monday; key factors behind the rally

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Published: June 3, 2019 3:57:52 PM

The Indian headline indices- Sensex and Nifty touched all-time high on Monday ahead of RBI policy meet on June 6. While the Sensex breached 40,000 mark, the Nifty also crossed 12,000 mark.

Share Market Live, Stock Market Live, Nifty Live, NSE live, BSE live, Live Market Update, Market Today, Indian Share Market Live, Indian Stock Market Live, स्टॉक मार्केट, शेयर बाजारSensex, Nifty end at their record high on Monday ahead of RBI policy meet on June 6

The Indian headline indices- Sensex and Nifty touched all-time high on Monday ahead of RBI policy meet on June 6. While the Sensex breached 40,000 mark, the Nifty also crossed 12,000 mark. Today, among the top gainers on BSE were Hero MotoCorp, Tata Steel, Asian Paints and Bajaj Auto and the top losers were ICICI Bank and NTPC. Today, while the Nifty ended higher by 165 point at 12,088.55 level, Sensex settled above the level of 40,267.62, up 553.42 points from the last close on Monday. We take a close look at the key factors which drove the market today:

RBI monetary policy: On account of weak GDP data for the fourth quarter of FY 19, the experts are expecting a repo rate cut by the Reserve Bank of India or RBI to give a boost the economy. The RBI will announce its bi-monthly policy on June 6 this week. The GDP for the Jan-Mar quarter touched 5 month low at 5.8%, Last time, the RBI had cut the repo rate by 25 basis points. Benign inflation is also one of the reasons for the rate cut expectation by the market participants.

Crude oil prices: Easing of crude oil prices have also contributed towards the rally in Indian stock markets. The crude oil prices eased on Monday amid escalating trade tension between US and China. The fresh trade threats to Mexico by the US have also triggered the global growth worries. The international benchmark for crude Brent was last seen at 62.20 per barrel, up 0.34 per cent from the last close, while the US WTI was seen at 53.87 a barrel, higher by 0.69 per cent from the previous settlement. Crude oil is likely to trade in the range of Rs 3620-4050 per barrel on Monday. Crude oil dropped after US President Donald Trump stoked global trade tensions by threatening tariffs on Mexico. The US crude oil stockpiles fell less than expected last week, while gasoline stocks posted a hefty surprise build. Crude inventories fell 282,000 barrels in the week to May 24, compared with expectations for a decrease of 857,000 barrels, according to Kedia Advisory.

Budget expectations: Stock markets are on rally also because of the expectations of the good budget from the newly formed government at the centre. “Due to falling crude oil price and expectation of good budget from newly formed Govt. market seems in strong footing. Heavyweights like RIL and HDFC twins and Financial stocks are keeping the market Northward,” Siddharth Sedani, Vice President- Equity Advisory, Anand Rathi Shares and Stock Brokers told Financial Express Online.

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