Market Closing Updates, 6th June 2025: Sensex Jumps 747 Points, Nifty Settles Above 25,000

Equity markets responded strongly, with the Sensex climbing 746.95 points to 82,188.99 and the Nifty rising 252.15 points to close above the 25,000 mark at 25,003.05. The Indian Rupee also gained ground, strengthening 0.19% against the US Dollar to close at 85.625.

Rate-sensitive sectors led the rally. Banking, financial services, and real estate stocks surged, buoyed by the prospect of cheaper borrowing and improved credit growth. Major NBFCs and gold financing companies recorded sharp gains, while banking stocks, particularly small finance banks, saw substantial upside. The real estate sector is expected to benefit from lower home loan rates, potentially spurring both housing demand and investment. The automotive sector also saw improved sentiment, though the Nifty Media index declined by 1%.

RBI's Bold Rate Cut Sparks Market Rally Amid Policy Shift

The Reserve Bank of India (RBI) surprised markets with a stronger-than-expected monetary policy move, announcing a significant repo rate cut and a notable reduction in the Cash Reserve Ratio (CRR). Aimed at supporting economic growth amid global uncertainties, this policy shift triggered a sharp rally in Indian equity markets, lifting benchmark indices.

The Monetary Policy Committee (MPC) opted to front-load a 50 basis point cut in the repo rate, bringing it down to 5.50% from 6%. This move, exceeding expectations of a 25 bps cut, marks the third consecutive reduction, resulting in a cumulative 100 bps cut since February - making it the steepest easing cycle since the pandemic. Additionally, the RBI announced a 100 bps cut in the CRR, expected to inject approximately ₹2.5 lakh crore into the banking system through four tranches starting in September.

A key aspect of this decision was the shift in policy stance from 'accommodative' to 'neutral', suggesting a recalibration that maintains flexibility for future decisions. This change is viewed as a strategic move to avoid excessive market speculation while allowing room for policy responses based on evolving conditions. The central bank's front-loading approach was supported by easing inflation, particularly in food prices, prompting a downward revision of the FY26 inflation forecast to 3.7% from 4%. Despite external challenges, the real GDP growth forecast for FY26 remained unchanged at 6.5%.

RBI Policy Outlook  -  Growth Takes Centre Stage

The RBI’s aggressive rate cut and liquidity boost were widely welcomed as timely and growth-oriented. The CRR reduction is anticipated to lower short-term yields and ease financial conditions, encouraging capital expenditure. Home loan rates, which previously started around 8.25%, are now expected to begin near 7.5%, reducing EMIs and supporting housing demand.

While the neutral stance indicates limited room for further aggressive cuts, the continued moderation in inflation and stable macroeconomic indicators may allow for smaller, calibrated rate reductions later in the year. The focus now turns to how effectively these eased financial conditions translate into higher credit growth and stronger economic activity.

In summary, the RBI’s move signals a shift from inflation control to growth activation, aiming to shield the domestic economy from global headwinds while maintaining long-term financial stability.

Indian equity markets surged in early trade on Friday after the Reserve Bank of India delivered a larger-than-expected 50 basis point cut in the repo rate to support economic growth, which has slowed to a four-year low.

The benchmark BSE Sensex jumped 591.94 points to 82,033.98, while the NSE Nifty climbed 205.2 points to 24,956.10, recovering all early losses and extending gains post the policy announcement.

Rate-sensitive sectors led the rally  -  the Nifty Realty index surged 2.80%, Auto gained 1.14%, and Bankex added 0.98%, as investors cheered the central bank’s move to ease borrowing costs.

The repo rate now stands at 5.5%, its lowest level in three years, offering relief to home, auto, and corporate loan borrowers. The RBI’s Monetary Policy Committee cited a comprehensive review of domestic and global economic trends as the basis for the decision.

RBI Governor Sanjay Malhotra said the growth forecast for FY25 remains unchanged at 6.5%, while inflation expectations have been revised downward to 3.7%, aided by the prospect of a normal monsoon.

As of 12:15 PM IST, benchmark indices continued to extend gains after the RBI’s larger-than-expected 50 basis point rate cut earlier in the day. The Sensex surged over 750 points, crossing the 82,200 mark, up by 0.93%, while the Nifty50 climbed more than 240 points, trading just below the key 25,000 level, up 1%. 

Investor sentiment remained upbeat across rate-sensitive sectors such as realty, banking, and auto, as the policy easing is seen as a strong tailwind for credit growth and economic momentum. 

And here is how the Top 5 Gainers and Losers list is looking in mid-day trading session: 

Top 5 Gainers in the Market

Shriram Finance (SHRIRAMFIN)

• Opening Price: ₹654  
• Current Price: ₹679.85 
• Change: +4.36%

Shriram Finance saw strong upward momentum, buoyed by robust quarterly earnings and a positive outlook on loan growth and asset quality. Improved liquidity conditions and policy optimism further lifted investor confidence.

Bajaj Finance (BAJFINANCE)

• Opening Price: ₹8,945  
• Current Price: ₹9,300  
• Change: +4.10%

Bajaj Finance stock gained ground amid favorable sentiment surrounding the company’s long-term growth prospects and supportive policy cues from the RBI. Technical indicators pointing to strength also helped draw in buyers.

JSW Steel (JSWSTEEL)

• Opening Price: ₹968.75  
• Current Price: ₹1,001.80  
• Change: +3.41%

JSW Steel rallied after breaking a key technical resistance level. Expectations of steady demand and strong sector fundamentals contributed to renewed buying interest.

Axis Bank(AXISBANK)

• Opening Price: ₹1,158.90  
• Current Price: ₹1,195.70  
• Change: +3.17%

Axis Bank gained as investors reacted positively to the RBI’s rate cut, which is likely to spur credit growth. Technical strength and improved sector outlook have further supported the move.

Maruti Suzuki (MARUTI)

• Opening Price: ₹12,139  
• Current Price: ₹12,462  
• Change: +2.77%

Maruti Suzuki edged higher on the back of optimistic sales expectations and continued production stability despite global supply headwinds. Easier auto loans post-rate cut also boosted investor appetite.

Top 5 Losers in the Market

Bharat Electronics Ltd (BEL)

• Opening Price: ₹394.85  
• Current Price: ₹390.75  
• Change: -0.70%https://groww.in/stocks/nestle-india-ltd

BEL eased slightly as investors locked in recent gains. The dip appears to be a routine pullback rather than a shift in fundamentals.

Sun Pharma(SUNPHARMA)

• Opening Price: ₹1,685  
• Current Price: ₹1,673.40 

• Change: -0.58%

Sun Pharma slipped as traders booked profits, with some caution creeping in over potential regulatory pressures and intense sectoral competition.

Nestlé India (NESTLEIND)

• Opening Price: ₹2,403  
• Current Price: ₹2,392.70  
• Change: -0.36%
  

Nestlé saw mild weakness amid concerns over input cost inflation and possible regulatory scrutiny. FMCG sector softness has added to the drag.

HDFC Life(HDFCLIFE)

• Opening Price: ₹764.40  
• Current Price: ₹758.95  
• Change: -0.35%
  

HDFC Life came under pressure amid concerns of slowing premium growth and broader uncertainty over regulatory developments in the insurance space.

SBI Life(SBILIFE)

• Opening Price: ₹1,774.80  
• Current Price: ₹1,773.00 
• Change: -0.10%

SBI Life witnessed marginal losses, likely due to short-term consolidation and profit booking. Broader financial sector caution weighed on performance despite strong fundamentals.

The Reserve Bank of India’s Monetary Policy Committee (MPC) is set to announce its policy decision today at 10:00 AM IST, followed by a press conference at 12:00 PM IST. The focus remains firmly on whether the central bank will deliver a rate cut to support growth amid easing inflation and global uncertainties.

Markets are broadly expecting a 25-basis-point cut in the repo rate, which currently stands at 6%. Some forecasts, including from SBI Research, have floated the possibility of a sharper 50-bps cut, though that remains contingent on the MPC’s assessment of evolving global and domestic cues.

With retail inflation cooling to 4.3% - well within the RBI’s 2–6% tolerance band - and supported by lower food and crude oil prices, the case for easing has strengthened.

The policy stance is expected to remain accommodative, continuing the approach adopted in April 2025, as the RBI looks to balance its 4% inflation target with the need to boost economic momentum in the face of trade tensions and sluggish global demand.

Indian equity markets opened on a quiet note as investors awaited the outcome of the RBI’s monetary policy committee meeting, amid mixed global signals.

At 9:22 AM, the Sensex was down 67.42 points (0.08%) at 81,374.62, while the Nifty slipped 8.35 points (0.03%) to 24,742.55.

Wall Street Ends Lower as Trump-Musk Rift Clouds Market Sentiment

U.S. equities closed sharply lower on Thursday, as markets reacted to a sudden and high-profile fallout between President Donald Trump and Tesla CEO Elon Musk. The dispute, which erupted during the session, overshadowed progress on U.S.-China trade talks and came amid a batch of disappointing U.S. economic data.

The Dow Jones Industrial Average fell 108 points, or 0.25%, to finish at 42,319.74. The S&P 500 shed 31.48 points, or 0.53%, to 5,939.33, while the Nasdaq Composite led the declines, slipping 162.04 points, or 0.83%, to close at 19,298.45.

Musk, who had recently been appointed to lead the newly formed Department of Government Efficiency (DOGE), appeared to clash publicly with Trump over policy direction and autonomy, adding an unexpected layer of political drama to the markets.

ECB Cuts Rates, but Caution Tempers European Gains

In line with expectations, the European Central Bank (ECB) cut its three key interest rates by 25 basis points on Thursday, citing a more benign inflation outlook now that price growth hovers near the 2% target. However, ECB President Christine Lagarde’s indication of a possible pause in rate cuts over the summer led to a cautious market response.

The pan-European STOXX 600 index edged up 0.16%, while the FTSEurofirst 300 gained 0.19%.

Mixed Performance Across Asia and Emerging Markets

Emerging market equities climbed, with the MSCI EM Index rising 0.85% to 1,182.39. In Asia, MSCI’s index of Asia-Pacific shares (excluding Japan) added 0.81% to close at 622.86, buoyed by tech and consumer sector gains. However, Japan’s Nikkei slipped 0.51%, ending the day 192.96 points lower at 37,554.49, weighed by profit-taking in industrials and financials.

Precious Metals Surge Amid Global Uncertainty

Gold prices continued their upward trajectory on Thursday, supported by ongoing geopolitical tensions in Europe and renewed uncertainty surrounding the U.S.-China tariff negotiations. Investors are also bracing for the upcoming U.S. Federal Reserve rate decision, adding to the metal’s appeal as a safe-haven asset.

On a year-on-year basis, gold has delivered close to a 30% gain, with a long-term CAGR of 15% since 2001. Historical data suggests that since 1995, the yellow metal has consistently outpaced inflation by 2–4%. Meanwhile, silver breached the ₹1 lakh per kilogram mark for the first time, driven by increased demand for safe-haven commodities amid a flight to portfolio security.

As of 7:15 AM IST on June 6, the MCX Gold Index was quoting at ₹97,933 per 10 grams, according to official exchange data. Silver prices on the MCX were trading at ₹1,04,402 per kilogram, reflecting continued investor interest in safe-haven assets amid global economic uncertainty.

Oil Rebounds After U.S.-China Trade Talks Resume

Crude oil prices rebounded modestly after a volatile session, buoyed by news of renewed dialogue between the U.S. and China. Following a call between President Donald Trump and Chinese President Xi Jinping, both countries signalled intent to continue trade discussions, offering some relief to jittery markets.

Brent crude rose 0.7% to close at $65.34 per barrel, while U.S. West Texas Intermediate (WTI) gained 0.8%, settling at $63.37. The gains came after a prior session drop, spurred by higher-than-expected builds in U.S. gasoline and distillate inventories, reflecting tepid domestic demand.

Dollar Slips as Recession Fears Resurface

The U.S. Dollar Index (DXY) remained under pressure, holding below the 99.00 mark amid renewed concerns over a potential economic slowdown. The greenback struggled to recover after Wednesday’s reversal, triggered by disappointing U.S. macroeconomic data.

Stocks in Focus

• Bajaj Finserv Up to a 1.94% stake can be offloaded by promoters through block deals totaling ₹5,828 crore at ₹1,880/share. A smaller ₹4,750 crore deal with upsize is also being considered.
• IREDA Issued a QIP with a floor price of ₹173.83/share with scope for up to a 5% discount. The money will be used to fund upcoming green energy projects.
• Ashoka Buildcon Won LoIs of ₹1,387.2 crore for traffic management projects in Maharashtra. The contracts are for 10 years.
• Praj Industries Engaged by Enersur S.A. to drive a biorefinery project in Paraguay. This strengthens Praj's global presence in bio-energy.
• JSW Energy Commissioned 281 MW renewable capacity, bringing its total installed capacity to 12,499 MW. Entered into a 25-year PPA with Adani for 250 MW at ₹3.65/kWh.
• Coal India Entered an MoU with Indian Port Rail & Ropeway for the development of rail infrastructure. It is hoped that it would increase coal logistics efficiency.
• Imagica World Received ₹275 crore funding from HDFC Bank to buy Wet'n Joy parks in Lonavala and Shirdi. It increases its entertainment presence.
• Allied Digital Registered a ₹8.67 crore Q4 loss even as revenues grew 15.6%. Costs increased 46% year-on-year, hurting profits.
• Zaggle To buy Greenedge Enterprises for ₹27 crore through a non-binding term sheet. The acquisition enhances its loyalty and travel segment.
• KCP Appointed K Ramakrishna as the CEO of its cement business w.e.f. June 5. He was previously Senior President in the same business.

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