Closing Bell: RBI's double booster puts Nifty above 25,000, Sensex up 747 pts

Indian equity indices ended on strong note with Nifty above 25,000 on June 6 after RBI cut the repo rate by 50 basis points and CRR by 100 basis points. At close, the Sensex was up 746.95 points or 0.92 percent at 82,188.99, and the Nifty was up 252.15 points or 1.02 percent at 25,003.05.

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The Indian stock market responded optimistically to RBI’s surprise and aggressive growth push policy. The tremendous rate cut and liquidity boost via the CRR cut is expected to facilitate swift transmission of lower rates, reinforcing RBI's strong commitment to fostering economic growth, boosting investment, and stimulating consumption.

The RBI's neutral stance moderated expectations for future rate cuts and concerns linger over current tepid demand, as reflected in the unchanged GDP growth forecast for FY26. However, the immediate liquidity expansion and growth-focused policy measures are likely to support the investor confidence amidst the ongoing global uncertainties. Rate-sensitive sectors, including banking, real estate, automobiles, and consumer durables are leading the rally.

The RBI cut the repo rate by 50 bps to 5.5% amid sharply easing inflation—down from 6.2% in Oct 2024 to 3.2% in Apr 2025, below the 4% target. With a normal monsoon forecast and softening global commodity prices, inflation is now projected at 3.7% for FY26, down from the earlier 4% estimate. GDP growth guidance remains unchanged at 6.5%.

This move brings major relief to borrowers, with EMIs set to drop further following a cumulative 100 bps cut since February. The MPC also shifted its stance to neutral and announced a staggered 100 bps CRR cut to 3%. These measures offer timely support to the economy and markets amid global uncertainties.

#1 Friday’s gain helps market turn positive for the week

#2 Market records weekly gain after giving negative returns for 2 consecutive weeks

#3 Broader markets outperformance with Midcap index rising 3% Vs Nifty’s 1 percent

#4 Nifty Bank registers a gain of nearly 2 percent this week

#5 Except media, all sectoral indices post gains, realty is top gaining index

Markets ended the week on a firm note, gaining nearly a percent, supported by favorable domestic cues. The tone was initially cautious ahead of the outcome of the MPC’s monetary policy review, but sentiment turned sharply positive following the surprise announcement of a 50-basis points repo rate cut and a staggered 100 basis points reduction in the CRR. This triggered a strong upward move, followed by a range-bound phase for the remainder of the session. Eventually, the Nifty index settled near the day’s high at 25,003.05.

All key sectors contributed to the rally, with rate-sensitive segments such as realty, financials, and auto emerging as top gainers, closely followed by others. The broader indices also extended their winning streak, rising between 0.8% and 1.2%.

Although the Nifty remains in a consolidation phase, the buoyancy in rate-sensitive sectors—particularly the breakout seen in the banking index—has renewed hopes of a trend resumption. A decisive breakout above the 25,200 mark in the Nifty could trigger the next leg of the rally, potentially pushing the index toward the 25,600 level.

Going forward, the impact of the rate cut is expected to continue influencing market sentiment. Rate-sensitive pack, along with select themes like railways, are likely to stay in focus, while other sectors may contribute on a rotational basis. We continue to recommend a “buy on dips” strategy with an emphasis on selective stock picking.

The rupee appreciated to 85.65, gaining 17 paise, supported by the RBI’s cumulative 1% (100 bps) rate cut over the past three policy meetings, including the latest 50 bps cut. This aggressive easing stance has injected liquidity and improved investor sentiment, especially as it aligns with a broader effort to revive growth through monetary stimulus.

The move supports risk assets and encourages capital inflows, aiding the rupee’s short-term strength. Technically, 86.00 remains a strong support level, and the immediate resistance zone lies between 85.25 and 85.00. A sustained move below 85.25 may be required for further appreciation, but near-term consolidation is likely within this range.

The stock index has moved up sharply following a bazooka policy move by the RBI. It closed above the 25,000 mark after several sessions, indicating a surge in optimism among market participants. Typically, a rally followed by consolidation often results in an upward breakout, and this time too, we expect Nifty to break out above the recent consolidation range.

On the higher side, resistance is placed at 25,150. A move above this level — or even a sustained close above 25,000 — could set the stage for the index to rally towards 25350.

On the downside, support is placed at 24,850. A breach below this level may weaken the current rally and trigger some profit booking.

Indian rupee ended 16 paise higher at 85.63 per dollar on Friday against Thursday's close of 85.79.

Indian equity indices ended on strong note with Nifty above 25,000 on June 6 after RBI cut the repo rate by 50 basis points and CRR by 100 basis points.

At close, the Sensex was up 746.95 points or 0.92 percent at 82,188.99, and the Nifty was up 252.15 points or 1.02 percent at 25,003.05. About 2163 shares advanced, 1712 shares declined, and 127 shares unchanged.

Biggest Nifty gainers included Shriram Finance, Bajaj Finance, JSW Steel, Axis Bank, Maruti Suzuki, while losers were HDFC Life, Bharat Electronics, Tata Steel, Bharti Airtel, Sun Pharma.

Except Media (down 1 percent), all other sectoral indices ended higher with Realty rose more than 4 percent and metal, auto, consumer durable jumped more than 1 percent each.

The BSE midcap index added 0.9 percent and smallcap index jumped 0.4 percent.

RBI’s decision to slash the repo rate by straight 50 bps to 5.5% has taken the industry by surprise. This move is an encouraging step and should help to boost sentiment across sectors. This is further supported by stability in price, financial and political front, which is providing opportunities to both domestic and foreign investors.

GDP forecast maintained at 6.5% and cooling down of inflation to 3.7% from the earlier 4% for FY26 shows that Indian economy is progressing well on growth as well as inflation front. This also highlights the robust consumption supported by strengthening disposable income.

With regards to the yellow metal, the prices have been volatile in both domestic and international markets on the back of macro headwinds. With US Fed’s decision due in the second half of this month, we will have to wait and watch what unfolds as that will decide the course of gold prices globally.

As we step into the gold-buying season, this will augur well for the domestic gems & jewellery sector as a softened inflation will reflect as strengthened purchasing power among the masses, thus reinforcing the buying of jewellery.

#1 Indian life Insurers have rallied strongly over the past year

#2 Bernstein believes there is more upside as valuations remain attractive

#3 Growth & margin outlooks are improving, with regulatory concerns easing

#4 Top Pick: Max Financial.

#5 Neutral on ICICI Prudential Life & LIC

Indian Rupee is traded on a flat to positive note today. The RBI surprised the market with a jumbo rate cut. It cut repo rate by 50 bps to 5.5% from 6% earlier. CRR was cut 1% in a phased manner effective September 2025. Markets largely expected a 25-bps rate cut. He also changed the stance to neutral from accommodative. RBI Governor Sanjay Malhotra said that front loading rate cuts to support growth were felt necessary. The central bank revised inflation for FY2026 lower to 3.7% from 4%. The growth rate was left unchanged at 6.5%. However, a surge in the domestic markets supported the Rupee at lower levels. Both the indices are trading ~1% higher.

We expect Rupee to trade with a negative bias as the need for jumbo rate cut signals a slowdown in growth in the economy. Also, any further rate cut by the RBI may also pressurise the Rupee. However, positive tone in the domestic markets may support the domestic currency at lower levels. Investors may now focus on the non-farm payrolls report from the US. USDINR spot price is expected to trade in a range of Rs 85.40 to Rs 86.25.

Indian rupee is trading marginally higher at 85.73 per dollar against Thursday's close of 85.79.

We view the policy as growth supportive and stimulative along with an indication of a clear resolve by policy makers to push for growth in an uncertain global environment.

The governor also said that while growth is decent, aspirational growth in the 7-8% range.

The company’s subsidiary, CARBOGEN AMCIS AG, entered in to a strategic co-investment of more than CHF 25 million with a long-standing Japanese customer to expand manufacturing capabilities at its sites in Aarau and Neuland, Switzerland.

The Sensex was up 751.96 points or 0.92 percent at 82,194.00, and the Nifty was up 251.95 points or 1.02 percent at 25,002.85. About 2014 shares advanced, 1507 shares declined, and 103 shares unchanged.

#1 Cement spreads are improving as prices trend higher

#1 Global fuel costs remain stable; spot prices indicate a potential decline

#3 Cement prices rose Rs 2/bag in June (MoM)

#4 Prices are up Rs 12/bag in Q1FY26 (QoQ)

#5 Nomura is bullish on long-term demand drivers

#6 Top picks are Ambuja, UltraTech, Shree Cement & Ramco

Housing & Urban Development Corporation has approved the raising of debentures as unsecured, taxable, redeemable, non-convertible, non- cumulative NCDs of face value of Rs 1,00,000 each (Series-C 2025) aggregating upto Rs 750 crore on private placement basis.

The company has agreed to acquire a 100% stake in Greenedge Enterprises from the existing shareholders for Rs 27 crore. It has executed a non-binding term sheet for the said acquisition. The acquisition of Greenedge is expected to strengthen Zaggle’s offerings in the loyalty and rewards segment, as well as the travel segment.

The Sensex was up 715.12 points or 0.88 percent at 82,157.16, and the Nifty was up 236.95 points or 0.96 percent at 24,987.85. About 1962 shares advanced, 1506 shares declined, and 135 shares unchanged.

The shareholding of Accel India IV (Mauritius) and Accel Growth Fund V LP in the company has been reduced by 2.73%, to 10.81% from 13.54%, following the completion of an open market transaction on June 3.

The Board has approved the allotment of 30.85 crore partly paid-up equity shares at a price of Rs 32 per share to the company’s eligible equity shareholders on a rights basis. Of this amount, Rs 16 per share has been paid on allotment, and the remaining amount will be payable in not more than two calls.

K Ramakrishna has been designated as the CEO of the cement business (head of the cement division) of the company, effective June 5. He currently serves as the Senior President of the cement division.

The company has executed a facility agreement worth Rs 275 crore with HDFC Bank to avail a loan for financing the purchase of the park business undertaking—Wet’n Joy (Amusement Park and Water Park) at Lonavala and Wet’n Joy (Water Park and Saiteerth Devotional Theme Park) at Shirdi—from Giriraj Enterprises.

#1 Road ministry has received recommendations from IRDAI to hike motor 3rd party prem

#2 Road ministry likely to take a call in 2-3 weeks

#3 Draft circular to be issued after ministry approval

Coal India (CIL) has executed a non-binding Memorandum of Understanding (MoU) with Indian Port Rail & Ropeway Corporation in Kolkata for the development of rail infrastructure for CIL and its subsidiaries.

The 50-bps rate cut is a bold move by the RBI. A total of 100 bps rate cuts in quick succession since February 2025 signals a strong push towards accelerating economic momentum while keeping inflation well within manageable levels. These progressive steps along with the inflation easing and the growth forecast remaining steady at 6.5%, the rate cut is expected to significantly lower borrowing costs, thereby improving affordability for homebuyers across segments.

The monetary policy is becoming more balanced and forward-looking. This move by the RBI will likely catalyse a surge in home loan demand, especially the affordable housing segment. We expect a good boost in the housing demand July onwards, and are optimistic that this year will be good for the housing finance industry.

The company has commenced commercial operations at its fourth factory in India, located in Jaunpur, Uttar Pradesh.

In a decisive policy pivot, RBI Governor Mr. Malhotra announced a 50 basis point repo rate cut and a shift to a neutral stance, signaling flexibility amid evolving macroeconomic conditions.

Together with a 100 bps drop in the CRP, a daring 50 bps repo rate cut conveys a clear commitment to fostering growth, even in the face of ongoing global uncertainty. These steps should be enough to maintain the Indian lending ecosystem’s lubrication.

This move underscores the central bank’s confidence in inflation being under control and marks a shift toward reviving demand and stimulating credit. Lower borrowing costs are expected to benefit both households and businesses, reinforcing a consumption-led recovery.

Interest rate-sensitive sectors like housing, auto, and real estate, are poised to gain from the improved affordability and sentiment. Consumer durables and discretionary segments may seem a boost, especially in urban markets. While financial services could face short-term margin pressures, stronger credit offtake and improved asset quality should support medium-term gains. Infrastructure and capital goods may seem a revival in private capex if transmission remain smooth.

Concerns over a narrowing yield gap between the U.S and India may arise. However international investors seeking diversification within emerging markets will continue to be drawn to India’s robust economic potential and political stability.

By moving to a neutral stance, the RBI has preserved the flexibility to adapt to changing conditions. This is a bold, growth-supportive intervention that balances recovery with prudence.

The company has commissioned the project—Transmission Network Expansion in Gujarat to increase ATC from ISTS, Part-C.

The Reserve Bank of India's latest policy announcement took markets by surprise with a sharper-than-expected 50 basis points cut in the repo rate and a substantial 100 basis points reduction in the Cash Reserve Ratio (CRR). This clearly signals a strong pro-growth stance by the central bank. Notably, the shift in policy stance from 'accommodative' to 'neutral' also came earlier than most market participants had anticipated.

By front-loading these easing measures, the RBI is demonstrating its intent to proactively support domestic economic growth amid heightened global uncertainties. While such actions were expected to unfold gradually over time, the central bank’s bold move reflects its increased urgency to revive momentum in the face of external headwinds. At the same time, the RBI appears mindful of inflationary pressures, balancing its growth-oriented measures with a vigilant eye on price stability. This decisive policy pivot reaffirms the central bank’s commitment to steering the economy through challenging times with a calibrated and responsive approach.

The Sensex was up 691.43 points or 0.85 percent at 82,133.47, and the Nifty was up 228.25 points or 0.92 percent at 24,979.15. About 1959 shares advanced, 1479 shares declined, and 128 shares unchanged.

RBI has announced a 50 basis points cut in repo rate to 5.50% to boost economic growth amid cooling inflation. Despite the tariff-led disruptions at the global level, the market volatility has dampened, with Indian stock markets taking a path of recovery. In the Q4 FY25, the real GDP has surpassed the previous three quarters' growth rate at 7.4%. In FY25, the real GDP growth rate stood at 6.5%, while the FY26 GDP growth projection remains steady at 6.5%.

In April 2025, CPI inflation had dropped to a nearly six-year low of 3.2%, led by the fall in food inflation. For FY26, the inflation is projected downward at 3.7%. The drop in inflation has helped the RBI to take the rate-cut route to increase domestic consumption and investment. Additionally, the RBI has also changed its stance from accommodative to neutral, signalling flexibility in policy rates based on the current economic situation and inflationary conditions.

The 50 bps repo rate cut by the RBI seems a good push to India’s economic growth as it will promote borrowing, boost investment, and foster job creation. This will reduce the interest rates and make it cheaper for people and businesses to borrow money, leading to higher spending or investment. Sectors such as banking, automobile, infrastructure, and real estate can directly benefit from this announcement. With the reduction in EMIs of repo-linked loans, the disposable income of the households will increase, which can benefit FMCG and automobile stocks. Also, a boost to the real estate and infrastructure sector will have a ripple effect on the related sectors such as cement, steel, and construction materials. Overall, the Indian equity market stands to benefit from the repo rate cut with a higher level of spending and investment.

The Board will meet on June 10 to consider the issuance of non-convertible debentures worth up to Rs 500 crore on a private placement basis.

#1 No systemic impact arising from IndusInd Bank issue

#2 Will keep monitoring banking system

#3 IndusInd issue should settle down very soon

#4 IndusInd MD, CEO has resigned, that should be good enough

The company has received a third work order from Nyati Engineering & Construction. The contract pertains to the power supply system electrical work at the Udaipur Air Terminal in Rajasthan and is valued at Rs 6.25 crore.

RBI delivered much more than market expectations, with a 50bps cut in repo rate and a full 100bps reduction in CRR , spread over four instalments beginning Sep 6. Remarkably, for the first time since the start of inflation targeting regime, the full year projection for inflation is below the target range of 4% with 2% band, at 3.7%. However, the stance was changed to neutral, suggesting that RBI has upfronted the entire accommodation room at a quick pace.

Accordingly, the market participants have a good assessment of the terminal policy rate in current cycle. Accordingly, 10Y benchmark bond yield which has already inched down to around 6.20%, remained largely flat. Most reaction was seen in the shorter end of the curve with money market rates easing further extending to 1-3 year corporate bond segment. Going forward, it is expected that longer bond yields remain range bound, the money market rates may ease further.

KP Group signed three strategic Memoranda of Understanding (MOUs) with Delta Electronics India, a leading provider of energy and power management solutions. This collaboration spans three high-impact areas: Battery Energy Storage Systems (BESS), Green Hydrogen and EV Charging Infrastructure and Solar PV Inverters.

LTV for gold loans below Rs 2.5 lakh to be revised to 85% from 75%

The company has executed the sale deed to sell land and building at Noida, Uttar Pradesh, along with some assets, for Rs 50.5 crore.

Indian rupee has erased all the intraday losses and trading flat at 85.78 per dollar against Thursday's close of 85.79.

The Sensex was up 847.89 points or 1.04 percent at 82,289.93, and the Nifty was up 274.80 points or 1.11 percent at 25,025.70. About 1960 shares advanced, 1424 shares declined, and 135 shares unchanged.

#1 Bajaj Auto targets 125cc+ segment growth via Pulsar refresh or new brand

#2 Plans to launch the Chetak EV with a 3kWh battery, which could boost its e2W market share

#3 Sees 15–20 percent export growth in FY26 on strong LATAM, Africa demand

#4 KTM turnaround expected by 2026 after restructuring & gaining control

#5 Plans to launch lithium-ion e-rickshaw alongside existing e3W

The company has commissioned 281 MW of organic renewable energy capacity, comprising 215 MW of solar capacity and 66 MW of wind capacity, taking its total installed capacity to 12,499 MW.

Further, JSW Renew Energy Three, a step-down subsidiary, has signed a Power Purchase Agreement (PPA) with Adani Electricity Mumbai for 250 MW of STU-connected wind capacity.

The PPA, signed for a supply period of 25 years, is priced at a tariff of Rs 3.65/kWh. The project in Maharashtra is expected to be commissioned within the next 24 months.

The 50 bps repo rate cut was a bit of a surprise, most of us were expecting just 25 bps. But with inflation cooling off to a six-year low of 3.16% in April, the RBI feels more confident about the price outlook. This move takes the total cut for 2025 to 100 bps.

The message is clear. The central bank is trying to stay ahead of the curve, especially with global demand weakening and uncertainties still hanging over the economy. At the same time, the RBI is also signalling that its room to do more is limited and that came through with the shift in stance to ‘neutral’.

So while this cut is bold, it may also be the last in this cycle, unless growth slows even more. From here, the focus will likely shift to how long the RBI keeps rates at these levels, and what triggers the next move.

The company has launched its Centre of Excellence for financial services in Buenos Aires, Argentina. It has onboarded 50 technology experts and plans to scale up to 200 by the end of the year.

The company has received Rs 123 crore from the Department of Telecommunications under the Production Linked Incentive (PLI) Scheme for telecom and networking products. The said amount is the first tranche, amounting to 85 percent of the eligible incentive for Q3FY25. The remainder is expected to be released subsequently.

The company’s subsidiary, Nila Urban Living, has awarded the construction contract worth Rs 129.25 crore for its upcoming premium residential development at GIFT City to Riveria Infrastructures. The project is scheduled to be completed over 27 months from the date of commencement.

The higher-than-expected 50bp rate cut decision by the MPC, though positive for growth is slightly negative from the market perspective for the near-term. This big rate cut is, as the RBI Governor remarked, front-loading of the rate cut. The change in monetary stance from accommodative to neutral also indicates that more rate cuts are unlikely unless the situation warrants.

This big rate cut will impact the margins of the banks and, therefore, bank stocks will be under pressure in the near-term. However, the credit growth that this rate cut will hopefully stimulate will compensate for the dip in margins.

The shares of Hindustan Zinc jumped nearly 3 percent intraday on June 6 on signs that the bullish momentum in silver prices may be showing signs of further strength, sending the stock to a five-month high in early trade.

Silver's future contracts with July expiry on the Multi Commodity Exchange (MCX) opened at a lifetime high of Rs 1,05,316 per kg. It has crossed the Rs 1.05 lakh per kg-mark for the first time ever, breaking the previous lifetime record of Rs 1.04 lakh per kg, which was set just the day before.

In the domestic markets, the price of silver jumped Rs 3,000 per kg in just one day to stand at around Rs 1.07 lakh per kg, according to Good Returns.

Hindustan Zinc is the largest producer of silver in India, and produces refined silver with a minimum 99.9 percent purity. The sharp rise in the bullion's prices is expected to further boost the stock.

The RBI’s surprise 50 basis point rate cut underscores its strong pivot toward supporting growth, at a time when inflation is under control and global central banks are entering easing cycles. With real rates still elevated and domestic demand uneven, this move is aimed at unlocking credit growth, reviving private investment, and easing the burden on borrowers.

Sectors like housing, autos, banking, and infrastructure are likely to see improved momentum as transmission picks up. It’s also a positive signal for rural and small business credit, where growth has been lagging.

That said, the market’s muted reaction reflects a mix of caution and global crosswinds. Concerns around rupee weakness, global risk appetite, and the effectiveness of transmission may be holding back investor enthusiasm. Nonetheless, the move improves the medium-term outlook for consumption and capex.

Bond markets are expected to rally, especially in the long-duration segment, and we believe this cut sets the stage for a more accommodative environment heading into the second half of the year.

CRR cut to release Rs 2.5 lakh crore of liquidity

#1 Stock outperformed Nifty by 12 percent YTD on retail rebound

#2 FY26 growth outlook strong on new store additions, Jio tariffs & O2C performance

#3 Trades below long-term average EV/EBITDA, room for re-rating

Coal India (CIL) has executed a non-binding Memorandum of Understanding (MoU) with Indian Port Rail & Ropeway Corporation in Kolkata for the development of rail infrastructure for CIL and its subsidiaries.

#1 Real GDP projection for Q2FY26 unchanged at 6.70 percent

#2 Real GDP projection for Q3FY26 unchanged at 6.60 percent

#3 Real GDP projection for Q4FY26 unchanged at 6.30 percent