Sensex Gains for Second Day, Nifty Crosses 24,750; Smallcaps Lead Market Rally

The Indian stock market stayed in positive territory for the second consecutive day on June 5, with both Sensex and Nifty registering solid gains. This momentum comes just a day after the indices recovered from a three-day losing streak, bringing some relief to investors.

Despite fragile global cues and lingering market uncertainties, investor sentiment showed signs of improvement. However, volatility is expected to stay high, mainly due to the weekly options expiry scheduled for the day.

Sensex and Nifty Show Resilience

In early morning trade, the Sensex surged 435.69 points, or 0.54%, reaching 81,433.94, while the Nifty advanced by 132.05 points, or 0.54%, to hit 24,752.25.

Market breadth was firmly in favour of the bulls. Out of all traded stocks:

• 2,185 stocks advanced

• 891 declined

• 149 closed unchanged

This positive breadth indicates growing investor confidence, even amidst external headwinds.

Broader Markets Outperform Benchmarks

A notable highlight of the day was the outperformance of broader markets.

• The Nifty Smallcap index rose 0.7%

• The Nifty Midcap index gained 0.3%

These gains reflect the continued strength in small and midcap stocks, which have shown resilience even during volatile phases in the broader market.

India VIX Trends Lower

Adding to the optimistic sentiment, the India VIX—a key indicator of market fear and volatility—continued its downward trend. This decline suggests that investor anxiety is gradually easing, though caution remains due to the ongoing global uncertainties.

Outlook

While the Indian equity markets are showing short-term strength, driven by broader participation and easing volatility, global market pressure and local events, such as derivatives expiry, could continue to influence investor behavior. Market participants should remain alert, as volatility is expected to persist in the near term.