Stock Market Outlook: Sensex, Nifty Set to Rally After Strong GDP Numbers
The Indian stock market is expected to open higher on Monday, June 2, 2025, following better-than-expected GDP numbers for the March quarter. Analysts predict positive momentum in sectors like banks, autos, and real estate.
Stock MarketGdpSensexNiftyReal EstateReal Estate NewsJun 02, 2025
India's economy grew by 7.4% in the January-March quarter, surpassing the expectations of many analysts. This robust growth was primarily driven by strong activity in the construction and manufacturing sectors. The latest data has significantly boosted investor confidence as the new trading week begins.
Market experts predict that the positive GDP numbers will help the Nifty and Sensex start the week on a strong note. VLA Ambala, Co-Founder of Stock Market Today, commented, “Nominal GDP reached Rs 330.68 lakh crore, reflecting resilience in domestic demand.” Ambala added that if the market opens lower by chance, the support levels may be around 24,520 and 24,450. On the higher side, resistance could come in at 24,880 and 25,030.
The upbeat GDP figures, combined with other positive indicators such as early monsoon progress and a low inflation outlook, are expected to bolster the overall market sentiment. Many traders are now focusing on sectors that are highly responsive to changes in interest rates, including banks, automobiles, real estate, and consumer goods. These sectors may attract more interest if the Reserve Bank of India (RBI) cuts interest rates at its meeting on June 6, 2025. The market is already anticipating a 25-basis-point rate cut.
Despite slight declines on Friday, both the Sensex and Nifty ended the month of May on a positive note. This marks the third consecutive month of gains, driven by strong foreign investments, better company results, and reduced trade-related concerns. However, both indices are still approximately 6% below their record highs from September 2024.
On Friday, foreign portfolio investors (FPIs) turned net sellers after five days of buying. Nevertheless, they remained net buyers for the month of May, bringing in $2.34 billion, the highest monthly inflow since September 2024.
Auto stocks will be closely monitored in today’s trade as companies have reported their sales numbers for May. Investors will also keep a close eye on other sectors like financial services and real estate.
In global markets, the scenario is mixed. Most Asian markets opened lower as investors remained cautious, awaiting key economic data from the United States, particularly job and manufacturing numbers, and keeping an eye on trade policies.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Frequently Asked Questions
What is the expected opening for the Indian stock market on Monday, June 2, 2025?
The Indian stock market is expected to open higher, with the Gift Nifty futures trading at 24,841.5 at 8:07 am, suggesting a positive start above Friday’s Nifty 50 close of 24,750.7.
What sectors are likely to see increased interest if the Reserve Bank of India cuts interest rates?
Sectors that are highly responsive to changes in interest rates, such as banks, automobiles, real estate, and consumer goods, are likely to see increased interest if the RBI cuts interest rates.
How did the Indian economy perform in the January-March quarter of 2025?
India's economy grew by 7.4% in the January-March quarter of 2025, driven by strong activity in the construction and manufacturing sectors.
What are the support and resistance levels for the Nifty mentioned by VLA Ambala?
VLA Ambala mentioned that if the market opens lower, the support levels may be around 24,520 and 24,450. On the higher side, resistance could come in at 24,880 and 25,030.
What is the current status of foreign portfolio investors (FPIs) in the Indian stock market?
On Friday, FPIs turned net sellers after five days of buying, but overall, they remained net buyers for the month of May, bringing in $2.34 billion, the highest monthly inflow since September 2024.
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