Shares of fast-moving consumer goods (FMCG) and automobile companies snapped their recent losing streak on Tuesday, rising up to 4 percent after the India Meteorological Department's (IMD) forecast on the onset of the southwest monsoon boosted sentiment. According to reports from Moneycontrol.com, the Nifty FMCG index snapped its three-day losing run to close 0.76 percent higher, while the Nifty Auto index ended 0.72 percent higher, snapping its two-day decline. The positive sentiment emerged following the IMD's forecast that the southwest monsoon is likely to reach parts of Kerala and Tamil Nadu around June 4, though this represents a delay of about three days from the normal date of June 1.
Exide Industries was the top gainer in the automobile sector, rising 1.97% following the monsoon forecast. According to Business Standard, Tube Investments of India surged 2.58%, while Bharat Forge advanced 1.97%. The Nifty Auto index's recovery was supported by expectations that monsoon rains will increase rural incomes and consumption, which can support demand for automobiles. Other notable gainers included Maruti Suzuki India (1.56%), Hero MotoCorp (1.55%), Mahindra & Mahindra (0.86%), and TVS Motor Company (0.40%).
The broader market significantly outperformed frontline indices, with the BSE 150 MidCap Index jumping 0.86% and the BSE 250 SmallCap Index surging 0.82%. As per Business Standard, market breadth remained positive with 2,328 shares rising and 1,536 shares falling on the BSE, while 210 shares remained unchanged. The optimism was broad-based, with Nifty Midcap 100 and Nifty Smallcap 100 indices also closing in the green. This marked a significant turnaround from earlier sessions when benchmark stock indices Sensex and Nifty extended their losing streak to a fourth consecutive session.
The Nifty Media index emerged as a standout performer, gaining 2.19% to close at 1451.9, marking a significant turnaround for the sector. Among individual constituents, Zee Entertainment Enterprises Ltd rose 10.50%, while Saregama India Ltd fell 2.10% and Prime Focus Ltd added 2.03%. The media sector's strong performance comes despite the index having fallen 16.00% over the last one year, significantly underperforming the benchmark Nifty 50's 4.89% decline during the same period. Other sectoral indices showed mixed performance, with the Nifty Metal index dropping 0.73% and the Nifty Energy index increasing 0.62%.
The benchmark indices closed with modest gains, with the Nifty 50 rising 0.05% to close at 23,416.55 and the Sensex increasing 0.02% to close at 74,360.01. As per Business Standard, this represented a recovery from earlier session lows when both indices had extended their losing streaks. The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, shed 0.43% to 16.21, indicating reduced market uncertainty. The Nifty 30 June 2026 futures were trading at 23,495.50, at a discount of 81.25 points compared with the spot price.
