Sensex, Nifty rebound as RBI surprises with jumbo 50 bps rate cut; realty stocks lead

Markets gain ground as RBI surprises with a jumbo 50 bps rate cut

Indian benchmark indices Sensex and Nifty reversed early losses and moved higher on June 6 after the Reserve Bank of India (RBI) surprised markets with a larger-than-expected 50 basis points rate cut in its June policy meeting. The move sparked broad-based buying across sectors, while India VIX eased by another 3 percent, reflecting improved investor confidence.

Following the RBI’s policy decision, the Sensex was up by 88.50 points or 0.11 percent at Rs 81,530.54, and the Nifty gained 40.70 points or 0.16 percent to reach Rs 24,791.60. Market breadth stayed healthy, with 1,878 shares advancing, 1,215 declining, and 154 remaining unchanged.

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As the broader market sentiment stayed constructive, mid- and small-cap stocks continued to outperform the headline indices. The BSE Midcap index edged higher by 0.2 percent, while the BSE Smallcap index rose by 0.3 percent. This comes a day after the smallcap index hit a four-month high.

Sector-wise, the Nifty Realty index was the top gainer, reacting positively to the RBI’s dovish stance and supportive policy outlook. The RBI cut its CPI inflation projection for FY26 to 3.70 percent from the earlier 4 percent and shifted its policy stance from "accommodative" to "neutral."

Other interest rate-sensitive sectors also saw movement. The Nifty Auto index rose by 0.4 percent, while the Bank Nifty index remained range-bound and traded with a slight negative bias.

From a technical perspective, Mandar Bhojane, Equity Research Analyst at Choice Broking, noted that the Nifty may find immediate support at Rs 24,500, followed by Rs 24,400 and Rs 24,300.

“On the upside, resistance is likely around Rs 24,850, then Rs 24,900, and finally the psychological level of Rs 25,000. A fall below Rs 24,500 could lead to more selling, while a breakout above Rs 25,000 could trigger a rally to fresh record highs,” he explained.

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