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3mo ago

Indian Stocks Extend Rally: Weak US Services Data Pushes Bond Yields Lower

A slide in Treasury yields alongside fresh foreign buying has shifted investor attention to Friday’s RBI rate decision.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 4, 2025. REUTERS/Brendan McDermid/File Photo
Trader Leon Montana works on the floor of the New York Stock Exchange, Tuesday, June 3, 2025. (AP Photo/Richard Drew)

Overview

  • The BSE Sensex rose 443.79 points to 81,442.04 and the NSE Nifty50 gained 130.70 points to 24,750.90 on Thursday, extending the previous session’s rebound.
  • Foreign institutional investors turned net buyers on Wednesday, acquiring ₹1,076.18 crore of equities while domestic institutional investors added ₹2,566.82 crore.
  • The US ISM services PMI fell to 49.9 in May and ADP data showed private sector employment growth of just 37,000 jobs, fueling bets on policy easing.
  • US Treasury yields slid, with the 10-year note dropping to 4.36%, as markets interpreted weaker economic indicators as a signal for potential rate cuts.
  • Investors are pricing in a 25 basis point rate cut from the Reserve Bank of India when its Monetary Policy Committee announces its decision on Friday.