Nifty scales above 25,000 level; bank shares jump for 3rd day
Bank shares rally for third consecutive trading session.
At 14:25 IST, the barometer index, the S&P BSE Sensex, surged 793.74 points or 0.98% to 82,245.29. The Nifty 50 index jumped 263.35 points or 1.06% to 25,014.60.
In the broader market, the S&P BSE Mid-Cap index rose 0.90% and the S&P BSE Small-Cap index added 0.55%.
The market breadth was positive. On the BSE, 2,248 shares rose and 1,712 shares fell. A total of 157 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 2.28% to 14.74.
RBI Monetary Policy Outcome:
The Reserve Bank of India (RBI) cut the policy repo rate by 50 basis points to 5.50%, signaling a shift in its monetary policy stance from accommodative to neutral.
The decision, announced at the conclusion of the Monetary Policy Committee?s (MPC) 55th meeting held from June 4 to 6, 2025, was driven by easing inflation and a stable growth outlook.
With the rate cut coming into effect immediately, the standing deposit facility (SDF) rate now stands at 5.25%, while the marginal standing facility (MSF) rate and the bank rate are adjusted to 5.75%.
This decision is in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.
The RBI maintained its real GDP growth projection for FY26 at 6.5%, with quarterly growth seen at 6.5% in Q1, 6.7% in Q2, 6.6% in Q3, and 6.3% in Q4.
On the inflation front, the RBI revised its forecast downward to 3.7% for FY26 from the earlier estimate of 4%. Quarterly projections suggest CPI inflation at 2.9% in Q1, 3.4% in Q2, 3.9% in Q3, and 4.4% in Q4.
The RBI cited broad-based moderation in inflation over the past six months, with headline CPI now well below target. It noted that both food and core inflation are expected to remain soft, helped by easing global commodity prices amid a global growth slowdown.
Looking ahead, the MPC emphasized a data-dependent approach, stating it will closely monitor evolving domestic and global conditions to guide future policy moves.
The minutes of the MPC meeting will be released on June 20, and the next policy meeting is scheduled from August 4 to 6, 2025.
Buzzing Index:
The Nifty Bank index jumped 1.57% to 56,634.90. The index increased 1.86% for three consecutive trading sessions.
IDFC First Bank (up 6.78%), AU Small Finance Bank (up 4.35%), Axis Bank (up 3.16%), IndusInd Bank (up 2.56%), HDFC Bank (up 1.95%), Kotak Mahindra Bank (up 1.57%), Punjab National Bank (up 0.82%), Federal Bank (up 0.69%), State Bank of India (up 0.57%) and ICICI Bank (up 0.16%) advanced.
Numbers to Track:
The yield on India's 10-year benchmark federal paper rose 0.42% to 6.217 from previous close of 6.191.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 85.7900 compared with its close of 85.7950 during the previous trading session.
MCX Gold futures for 5 August 2025 settlement rose 0.30% to Rs 98,170.
The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.19% to 98.93.
The United States 10-year bond yield fell 0.39% to 4.376.
In the commodities market, Brent crude for August 2025 settlement shed 13 cents or 0.20% to $65.21 a barrel.
Stock in Spotlight:
JSW Energy added 2.51% after the company announced that it has successfully commissioned 281 MW of organic renewable energy capacity with solar capacity of 215 MW and wind capacity of 66 MW.
Powered by Capital Market - Live News