Your Weekly Stock Markets Rundown:📊 RBI’s Bold Rate Cut Sets the Tone — Markets Eye Growth, Liquidity & Global Cues Ahead!

Overview

• RBI’s Surprise Move: The Reserve Bank of India’s Monetary Policy Committee slashed the repo rate by 50 basis points to 5.5% on June 6, exceeding expectations of a 25 bps cut, while shifting its stance to "neutral." A phased CRR cut of 100 bps will inject ₹2.5 lakh crore into the system, boosting liquidity.

• Market Reaction: The Sensex soared 715.12 points to 82,157.16, and Nifty gained 236.95 points to 24,987.85 by 2 PM Friday, reflecting investor optimism over cheaper borrowing and growth support.

• Macro Outlook: India’s FY26 GDP growth forecast remains at 6.5%, despite global trade concerns, while inflation is projected to ease to 3.7% from 4%, aided by a strong kharif season start.

• Global Markets: US futures rose ahead of May jobs data, with S&P 500 futures up 0.35% and Nasdaq 100 futures up 0.33%. Asian markets were mixed: Nikkei 225 gained 0.5%, Kospi surged 1.5%, Hang Seng fell 0.4%, and Shanghai Composite edged up 0.1%.

📅 Weekly Events Calendar

💡 DO YOU KNOW?

India’s foreign exchange reserves hit $692.72 billion as of May 23, 2025, up from $685.73 billion the previous week. The latest update for May 30 is due on Friday.

Important Observations and Market Sentiments: Editor Special

• RBI’s Growth Push: The 50 bps rate cut and CRR reduction signal a strong growth focus, likely boosting rate-sensitive sectors like real estate and auto, though the shift to a "neutral" stance suggests future cuts will be data-driven.

• Global Inflation Watch: US inflation data on June 11 will influence Federal Reserve expectations, while China’s inflation numbers on June 9 could signal demand trends in Asia’s largest economy.

• UK Economic Health: Rising UK unemployment (4.5%) and weak industrial production (-0.7% in Mar) data on June 10-12 may pressure the pound and European markets, impacting FII flows to India.

• Nifty Technicals: Nifty’s close at 24,987.85 nears the psychological 25,000 mark, with support at 24,500 and resistance at 25,150, suggesting potential for a breakout if global cues remain supportive.

• Liquidity Boost: The CRR cut will lower borrowing costs, potentially spurring private investment and consumption, though banks may face margin pressure if deposit rates don’t adjust.

👀Stocks to Focus:

• Banking: ICICI Bank and HDFC Bank, poised to benefit from lower borrowing costs and increased credit demand.

• Real Estate: DLF and Sobha, as cheaper EMIs could drive housing demand.

• Automobiles: Bajaj Auto and Tata Motors, with a potential uptick in auto sales due to lower loan rates.

• Defensive Plays: Reliance Industries for stability amid global uncertainties.

📜 Summary:

The week of June 9-13, 2025, begins on a high note after the RBI’s unexpected 50 bps rate cut, propelling the Sensex to 82,157.16 and the Nifty to 24,987.85. With liquidity set to improve via a phased CRR cut, domestic growth is prioritized, though global headwinds like geopolitical tensions persist. Investors will monitor key data releases, including US inflation, UK GDP, and India’s forex reserves, for directional cues. Rate-sensitive sectors like banking, real estate, and auto are poised for gains, while a stock-specific approach is advised amid potential mid-week volatility.

🚀 Stay cautious, watch key events, and trade wisely!

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