Indian stock markets are poised for a positive start on June 9th, 2025, as global cues turn favorable amid renewed optimism surrounding US-China trade discussions. Both the Nifty 50 and the Sensex are expected to open higher, potentially extending their gains from the previous trading session, which saw both indices surge following a surprise move by the Reserve Bank of India (RBI).
Global and Domestic Cues
The Gift Nifty is currently trading around the 25,175 level, indicating a premium of approximately 80 points compared to the Nifty futures' previous close. This positive signal from the Gift Nifty reflects the overall upbeat sentiment in the Asian markets, which are tracking gains in the US stock market. Last week, the S&P 500 reached its highest level in over three months, closing above the 6,000 mark for the first time since February 21st. The Dow index also climbed to a three-month high, further contributing to the positive global cues.
Domestically, the RBI's decision to cut the repo rate by 50 basis points to 5.50% and reduce the Cash Reserve Ratio (CRR) by 100 basis points to 3% has significantly boosted market sentiment. This move, exceeding market expectations, has instilled confidence among investors, particularly in rate-sensitive sectors such as banking, financial services, and real estate.
Market Performance on June 6, 2025
On Friday, June 6th, the Indian stock market witnessed a strong rally, with the Nifty 50 closing above the 25,000 level. The Sensex surged by 746.95 points, or 0.92%, to close at 82,188.99, while the Nifty 50 settled at 25,003.05, gaining 252.15 points, or 1.02%. The Bank Nifty also experienced a significant surge, closing at a record high of 56,578.40, driven by positive investor response to the RBI's policy decisions.
Key Factors Influencing Market Sentiment
Several factors are expected to influence market sentiment on June 9th and in the coming week:
Expert Recommendations and Outlook
According to Amol Athawale, VP-technical Research, Kotak Securities, the 20-day SMA (Simple Moving Average) for the Nifty 50 index, around 24,800, will act as a trend decider level. As long as the index remains above this level, the bullish formation is likely to continue, with 25,100 serving as the immediate resistance. A successful breakout above 25,100 could push the market up to 25,400–25,500. Conversely, falling below 24,800 may lead to a retest of the 24,500/80600 level.
For the Sensex, Athawale suggests that the 20-day SMA, around 81,600, will act as a trend-decider level. Remaining above this level supports a bullish outlook, with 82,600 as the immediate resistance. A breakout above 82,600 could lead to a further rise to 83,500-83,900. However, falling below 81,600 could shift sentiment and potentially lead to a retest of the 80,600 level.
Stocks to Watch
Several brokerage firms have recommended specific stocks for trading on June 9th. Sumeet Bagadia, Executive Director at Choice Broking, has recommended NCC, M&M and Voltas shares. Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, and Shiju Koothupalakkal, Senior Manager — Technical Research, at Prabhudas Lilladher have also provided stock picks, including Infosys Ltd, ICICI Bank, CESC Ltd, Bajaj Finserv Ltd, and Bharat Heavy Electricals.
Overall, the Indian stock market is expected to start the week on a positive note, driven by favorable global cues, the RBI's policy support, and positive technical indicators. However, investors should remain cautious and monitor key factors such as US-China trade talks, domestic inflation data, and FII activity to make informed investment decisions.
