On June 6, 2025, Indian equity markets experienced a significant rally, with the Nifty 50 surpassing the 25,000 mark and the Sensex climbing over 740 points. This surge was primarily driven by the Reserve Bank of India’s unexpected policy measures, including a 50 basis point repo rate cut and a 100 basis point reduction in the Cash Reserve Ratio (CRR), aimed at stimulating economic growth.
Market Overview
The Reserve Bank of India’s (RBI) unexpected decision to cut the repo rate by 50 basis points to 5.5% and reduce the CRR by 100 basis points injected optimism into the markets. This policy shift is expected to enhance liquidity and support economic growth, leading to a broad-based rally across sectors.
🔝 Top Gainers on Nifty 50
Stock % Change Sector
Shriram Finance+5.85%, Axis Bank +4.90%Bajaj Finance +3.73%,HDFC Life Insurance +3.07% Bharat Electronics +2.77%
Insights
Financial stocks led the rally, reflecting increased investor confidence following the RBI’s rate cuts. Bharat Electronics gained on strong order expectations and defense sector optimism.
Top Losers on Nifty 50
Hindustan Unilever -0.71% ,Bharti Airtel -0.46% , ITC -0.30% ,Cipla -0.23%
Insights
Despite the overall market uptrend, some defensive stocks like Hindustan Unilever and ITC faced modest declines, possibly due to sector-specific factors or profit-booking activities.
Sectoral Performance
Financials: Led the gains with a 2% increase, reaching a record high, as investors anticipated improved margins due to lower borrowing costs.
Realty: Surged by 3.5%, benefiting from the rate cuts that are expected to boost housing demand.
Mid and Small Caps: The BSE Midcap and Smallcap indices rose by 0.58% and 0.57%, respectively, indicating broad-based market participation.
Expert Commentary
“The RBI’s decisive rate cut and liquidity support surprised the market, igniting strong buying in financials and realty. This move could mark the beginning of a bullish short-term trend, especially in rate-sensitive stocks,” said Kunal Shah, Equity Strategist, Mumbai.
Market Outlook
The RBI’s policy easing has injected optimism into the market, with expectations of enhanced liquidity and economic growth. Investors are advised to monitor upcoming economic indicators and corporate earnings reports to gauge the sustainability of this rally.
Note: The above information is based on market data and expert analysis as of June 6, 2025. Investors should conduct their own research or consult financial advisors before making investment decisions.
