The RBI witnessed a strength in the Indian equity indices on June 6 after the RBI cut a 50 basis points in the repo rate and 100 basis points in the CRR and the Nifty reached above 25,000. Upon closing, the Sensex rose 746.95 points or 0.92 percent to 82,188.99, and the Nifty grew 252.15 points or 1.02 percent to 25,003.05. Around 2163 shares rose, 1712 shares declined and 127 shares did not change. The biggest lead in the Nifty was Shriram Finance, Bajaj Finance, JSW Steel, Axis Bank, Maruti Suzuki, while the loss included HDFC Life, India Electronics, Tata Steel, Bharti Airtel, Sun Pharma. Except for media (decline of 1 percent), all other regional indices increased, with a growth of more than 4 percent in realty and increased metal, auto, consumer durable items by more than 1 percent. The BSE Midcap index increased by 0.9 percent and the smallcap index by 0.4 percent.
Thirty -share BSE Sensex opened at about 81,434.24 points today. As soon as it opened, it slipped into the red mark. However, it accelerated after the announcement of monetary policy. At 10:40 am it was 346.29 points or 0.43% to 81,788.33. Similarly, Nifty-50 of National Stock Exchange (NSE) also opened flat at 24,748.70. At 10:40 am it was trading at 122.60 points or 0.50% to 24,873.50. On the last trading day of the week, the benchmark index Nifty-50 and Sensex move will depend on several major factors. These include the decision of RBI’s Monetary Policy Committee (MPC), renewed trade talks between US President Donald Trump and China’s Xi Jinping, perception of foreign investors and signs from global markets.
RBI MPC meeting: Announcement of 0.50% reduction in repo rate
The Reserve Bank of India (RBI) on Friday (June 6) announced the second monetary policy for FY 2025-26. RBI Governor Sanjay Malhotra issued a policy and announced a cut of 50 basis points (0.50%) in the repo rate. With this, the repo rate has come down to 5.50%. Cash reserved ratio (CRR) has been reduced from 4 percent to 3 percent.
Nifty bank reached record high
With the cut in interest rates by RBI, the Nifty Bank reached the Intra-Day High on Friday. The Nifty Bank index rose by more than 1 percent to a record high of 56,428.90. All the components in the index were trading with an edge. In which IDFC First Bank, Bank of Baroda, Axis Bank, PNB, Kotak Mahindra Bank rose by more than 1 percent.
What are the signs of global markets?
Asian markets saw a boom. Investors reacted to the phone conversation between US President Donald Trump and Chinese President Xi Jinping. This has raised hopes of reducing trade tension between the two countries again.
Japan’s Nikkei index rose 0.31 percent. While the topics increased by 0.45 percent. Kospi increased by 1.49 percent and ASX 200 by 0.03 percent. The major US index on Wall Street closed down overnight due to a decline in Tesla’s shares. S&P 500 declined by 0.53 percent, while Nasdaq fell by 0.83 percent. Dow Jones fell by 0.25 percent. How was the market condition on Thursday? The 30 -share BSE Sensex rose 443.79 points or 0.55% to close at 81,442.04 on Thursday. Similarly, the National Stock Exchange (NSE )’s Nifty-50 was 130.70 points or 0.53 percent to close at 24,750. Due to the rapid trend of brokerage companies, shares of pharma companies rose today and it also affected the market. The repo rate by the Reserve Bank of India (RBI) also helped the market to climb up.