Taking Stock: Blockbuster Friday as RBI rate cut push Nifty to 25,000, Nifty Bank at record high

Among sectors, the Realty index soared by 4 percent as RBI's decision to cut repo rate is expected to lower EMIs, giving a boost to housing demand. The gold financing companies rose 5-7 percent after RBI said it will hike loan-to-value ratio limit to 85% for small ticket loans.

The Nifty Bank index surged to fresh record high 56,695, rising 1.5 percent, while auto, metal, consumer durables, private bank indices rose more than 1 percent each. On the other hand, Media index shed 1 percent.

The 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.

Also Read - RBI cuts CRR by 100 bps to 3% in phased manner, to inject Rs 2.5 lakh crore liquidity into banking system

More than 110 stocks on the BSE touched their 52-week highs, including Godrej Industries, Muthoot Finance, Bajaj Holdings, Manappuram Finance, SBI Cards, Maharashra Scooters, MCX India, AU Small Finance, HDFC AMC, HDFC Bank, Fortis Healthcare, SRF, APL Apollo, Welspun Corp, Abbott India, Anupam Rasayan, Bharat Electronics, AstraZeneca Pharma, Solar Industries, Lloyds Metals, among others. Click to View More

Outlook for June 9

Rupak De, Senior Technical Analyst at LKP Securities

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.

Ajit Mishra – SVP, Research, Religare Broking

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.

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