Nifty 50 closes at 25,103 level as sentiments turned bullish post RBI rate cut

Indian equity benchmarks ended Monday, June 9, on a strong note as investor sentiment turned positive across sectors. The BSE Sensex climbed 260.21 points, closing at 82,449.20, while the NSE Nifty 50 advanced 97.95 points to settle at the 25,101.00 mark, testing a key technical level during the session.

Market breadth was broadly positive, with 2,470 stocks advancing, 1,224 declining, and 112 remaining unchanged, signalling strong participation beyond large-cap names.

Sector Watch: PSU Banks, IT, and Media Fuel Rally

Sectoral indices reflected robust buying interest, with all major sectors—except realty—closing in the green. Top gainers included:

• Nifty PSU Bank
• Nifty IT
• Nifty Media

Midcap and smallcap indices also saw significant traction, gaining between 1.2% and 1.6%, underlining optimism across market segments.

Bank Nifty Scales 57,000 Intra-Day on RBI Policy Tailwind

The Bank Nifty surged past the 57,000 level during intra-day trade, touching a fresh high before ending at 56,820.45, up 0.43% or 250 points. The rally came in response to the Reserve Bank of India’s recent policy measures, including:

• A 50 basis point cut in the repo rate
• A 100 basis point reduction in the Cash Reserve Ratio (CRR), to be rolled out in four tranches starting September

Leading the banking pack were:

• Kotak Mahindra Bank
• AU Small Finance Bank
• IDFC First Bank

These counters gained between 2.5% and 3%, contributing significantly to the index movement.

Gold Loan Firms Rally up to 8% on RBI’s Revised LTV Norms

Gold-financing NBFCs witnessed sharp gains after the RBI announced final guidelines raising the Loan-to-Value (LTV) ratio for gold loans. The updated framework now allows:

• 85% LTV for loans up to ₹2.5 lakh
• 80% LTV for loans between ₹2.5 lakh and ₹5 lakh

As a result, stocks like Manappuram Finance, Muthoot Finance, and IIFL Finance saw price jumps of up to 8% during the session.

What’s Ahead: Eyes on Macros and Monsoon

Investors will keep a close watch on upcoming domestic macroeconomic data, including:

• Consumer Price Index (CPI) inflation numbers
• Trade balance figures
• Monsoon progress

Additionally, global market trends and geopolitical cues will play a role in shaping near-term direction.

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations