Led by realty, banking and auto sectors, Indian markets surged on RBI’s surprise rate cut. Eyes now on inflation data, monsoon progress, and a potential Nifty breakout above 25,200.
June 7, 2025 | The Indian stock markets extended their winning streak for the third consecutive week, buoyed by the Reserve Bank of India’s surprise rate cut and dovish outlook. The Nifty 50 closed the week at 25,003, while the Sensex ended at 82,118.99, both finishing near their weekly highs after a sharp Friday rally.
Rate-Sensitive Sectors Lead the Charge
Gains were led by realty, automobile, and banking stocks as investors welcomed the potential for improved credit offtake and consumer sentiment. Financials and NBFCs saw strong buying amid expectations of easier borrowing conditions in the coming quarters. However, IT stocks continued to lag due to persistent global macroeconomic uncertainty, especially in the U.S. and Europe.
Key Drivers to Watch Next Week
Investors will closely monitor:
- CPI Inflation data – critical for gauging demand and RBI’s next moves.
- Monsoon progress and sowing patterns – crucial for rural demand and FMCG performance.
- Global cues – especially U.S. bond yields and trade developments.
Technical Outlook
Ajit Mishra, SVP of Research at Religare Broking Ltd, noted that Nifty is nearing the upper band of its consolidation range (24,500–25,100). A breakout above 25,200 could kickstart a fresh rally, possibly pushing the index toward the 25,600–25,800 zone.
“On the downside, 24,400–24,600 remains a strong support zone,” said Mishra.
Bank Nifty
The Bank Nifty finally broke out above the key 56,000 mark, with a new target of 58,000 in sight. “Any dip toward 55,350–56,000 could offer a buying opportunity,” added Mishra.
What Should Be Your Strategy?
With the RBI’s surprise rate cut acting as a tailwind, analysts suggest a “buy on dips” approach. However, they caution that the Nifty must stay above 24,600 for the uptrend to hold.
“Focus on quality stocks in banking, auto, and real estate which are best positioned to benefit from lower interest rates. Sector rotation may provide intermittent opportunities in other segments,” Mishra advised.
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Sensex, Nifty 50, Stock Market Weekly Wrap, RBI Rate Cut, Ajit Mishra, Religare Broking, Indian Stock Market Outlook, Bank Nifty, Inflation Data, Monsoon Impact