The Indian equities market is expected to start the week on a positive note, tracking firm cues from global peers amid optimism over U.S.-China trade talks. The U.S. and China are set to resume trade negotiations today, and this is likely to give a boost to the equity markets globally. At 7:55 AM, GIFT Nifty futures were trading higher by 75.5 points at 25,174, indicating gap-up opening for the domestic benchmark indices—the BSE Sensex and the NSE Nifty.

The market will see stock-specific reactions, while the trend in fund flows from foreign institutional investors (FIIs) and Covid-19 cases will be key triggers for the domestic bourses. Going ahead, market participants will focus on key macroeconomic data such as CPI inflation, scheduled to be released on June 12, to gauge demand trends and the Reserve Bank of India’s next steps.

“Additionally, the progress of the monsoon and sowing patterns will be monitored due to their implications for rural consumption,” said Ajit Mishra, SVP-Research, Religare Broking.

Last week, the Sensex and the Nifty managed to end higher by around 1%, aided by favourable domestic cues and a strong rally on Friday. The Nifty settled higher at 25,003 while the 30-share Sensex closed at 82,118.99 as investors cheered the RBI’s rate cut of 50 basis points on Friday. In the broader markets, both midcap and smallcap indices outperformed the benchmarks, gaining in the range of 2.8% and 4%.

Rate-sensitive sectors such as realty, auto, and banking stocks witnessed strong buying, reflecting improved outlook for credit growth and consumer sentiment. Financials and NBFCs also gained, as lower interest rates are expected to enhance borrowing conditions. On the other hand, IT stocks underperformed due to persistent global uncertainties, particularly in the U.S. and European markets.

Stocks to watch

Bharat Electronics Limited (BEL): Tata Electronics has signed a memorandum of understanding (MoU) with the Navratna public sector unit to develop electronics and semiconductor solutions jointly.

JK Cement: The cement company has completed the acquisition of a 60% stake in Jammu & Kashmir-based Saifco Cements for ₹150 crore.

Maruti Suzuki: The auto major has announced the expansion of its solar capacity by 30MWp with two new projects.

RITES: The PSU company has inked a pact with Hindustan Copper Limited to jointly develop a rapid, reliable, and sustainable supply chain of metals and minerals, including critical minerals in India and overseas.

Afcons Infrastructure: The company has secured a contract worth around ₹700 crore from the Mukesh Ambani-led Reliance Industries Limited (RIL) for construction works related to its Vinyl Projects in Gujarat’s Dahej.

Larsen & Toubro (L&T): The infrastructure major has proposed to raise ₹500 crore through ESG bonds, a debt security that funds an environmental, social, or governance goal. 

Technical Outlook

The Nifty has once again approached the upper band of its prevailing consolidation range of 24,500–25,100, said Ajit Mishra of Religare Broking. “A decisive breakout above 25,200 would mark the beginning of a fresh uptrend, with potential to gradually move towards the 25,600–25,800 zone. On the downside, the 24,400–24,600 range is expected to act as a strong support zone during any corrective phase,” he said.

Meanwhile, the Bank Nifty index has finally broken above the key 56,000 mark after trading in a tight range for over a month. “We now expect it to move towards the 58,000 level, making this segment crucial for broader market direction. In case of a dip, the 55,350–56,000 range is likely to provide strong support,” he added.

Strategy Ahead

With the RBI’s rate cut and dovish commentary acting as strong tailwinds, Religare Broking has maintained a positive outlook on the markets and suggests continuing with a “buy on dips” strategy unless the Nifty decisively breaks below 24,600. “However, investors should remain selective and focus on fundamentally strong stocks in sectors such as banking, auto, and real estate, which are poised to benefit from lower interest rates. Other sectors may contribute on a rotational basis,” said Mishra.

“Caution is warranted in areas facing margin pressures or global headwinds, such as FMCG and IT. Traders should remain agile and well-informed, especially in light of upcoming macroeconomic data and persistent global uncertainties,” he added.

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