Market Wrap, June 6: SENSEX jumps 747 pts, NIFTY50 tops 25,000 as RBI's jumbo rate cut and 100 bps CRR cut boost sentiment

The Reserve Bank of India (RBI) surprised the Street by announcing a more-than-expected cut in the repo rate – by 50 basis points to 5.5% – a third consecutive reduction – and reduced the cash reserve ratio (CRR) for banks by 1% to 3% to provide a major liquidity fillip to support the economy amid geopolitical and tariff headwinds.

Following the pro-growth measures, the S&P BSE SENSEX ended at 82,188.99, up 746.95 points, or 0.92%, while the NSE's NIFTY50 index settled at 25,003.05, up 252.15 points, or 1.02%.

All sectoral indices, barring NIFTY MEDIA, ended in the green, with rate-sensitive stocks leading the pack. The NIFTY REALTY index ended at 1,039.60, up 46.50 points, or 4.68%.

Banking stocks, too, witnessed a heavy demand, thus propelling the NIFTY BANK index to hit a record high of 56,695 levels during the trade.

The index eventually ended at 56,578.40, up 817.55 points, or 1.47%.

With the latest reduction, the RBI has cut interest rates by a total of 100 basis points in 2025, starting with a quarter-point reduction in February – the first cut since May 2020 – and another similarly sized cut in April.

The central bank, at the same time, changed its monetary policy stance to "neutral" from accommodative, with Malhotra saying further action will depend on incoming data.

Analysts said that the stock market responded positively to the RBI's surprise and aggressive growth push policy. The tremendous rate cut and liquidity boost via the CRR cut are expected to facilitate swift transmission of lower rates, reinforcing the RBI's strong commitment to fostering economic growth, boosting investment, and stimulating consumption.

From the SENSEX firms, Bajaj Finance surged 4.93%, and Axis Bank climbed 3.15 %.

Maruti, IndusInd Bank, Bajaj Finserv, Eternal, Mahindra & Mahindra, Tata Steel, Kotak Mahindra Bank, Titan, HDFC Bank, and NTPC were among the other major gainers.

Bharti Airtel and Sun Pharma were the losers on the 3-share index of the BSE.

The central bank lowered its inflation projection to 3.7% for 2025-26 from 4% earlier.

In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index and Shanghai's SSE Composite index settled in the positive territory while Hong Kong's Hang Seng ended lower.

European markets were on a mixed note.

US markets ended lower on Thursday.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹208.47 crore on Thursday, according to exchange data.