Particle.news
Download on the App Store
43 ARTICLES
·
last mo.

Surprise RBI Rate Cut Fuels Third Straight Gains for Sensex and Nifty

Aggressive monetary easing has unlocked fresh liquidity, fueling institutional buying with investors awaiting inflation readings, monsoon updates and trade negotiations.

A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Friday, June 6, 2025, in Tokyo. (AP Photo/Eugene Hoshiko)
Image
A currency trader watches monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, June 9, 2025. (AP Photo/Ahn Young-joon)
Traders on the floor of the New York Stock Exchange on Thursday.

Overview

  • RBI’s Monetary Policy Committee trimmed the repo rate by 50 basis points to 5.5% and cut the cash reserve ratio, injecting about ₹2.5 trillion of liquidity into the banking system.
  • Sensex jumped roughly 747 points to close at 82,188.99 and Nifty climbed 252.15 points to finish at 25,003.05, marking a third consecutive session of gains.
  • Foreign institutional investors turned net buyers, acquiring around ₹1,009.7 crore of equities, while domestic institutional investors extended their buying streak to 14 sessions with ₹9,342.5 crore of inflows.
  • Technical strategists project the Nifty to test the 25,500 level and see Bank Nifty pushing toward 58,700 as bullish momentum persists.
  • Investors are closely watching India’s retail inflation data, the progress of the monsoon season and developments in US-India trade negotiations for further market direction.