Daijiworld Media Network – Mumbai

Mumbai, Jun 6: Markets ended the week on a high as the Reserve Bank of India (RBI) delivered a sharp policy boost, cutting the repo rate by 50 basis points to 5.50% and the cash reserve ratio (CRR) by 100 basis points in four tranches. The surprise move cheered investors and led to a broad-based rally across sectors.

The BSE Sensex surged 746.95 points or 0.92% to close at 82,188.99, while the NSE Nifty climbed 252.15 points or 1.02% to settle at 25,003.05 breaching the 25,000 mark after several sessions.

Banking stocks led the charge, with the Nifty Bank jumping 817.55 points or 1.47% to 56,578.40. The index even touched a new all-time high of 56,695 during intraday trade.

The bullish momentum was not limited to largecaps. The Nifty Midcap 100 rose 1.21% to 59,010.30, and the Nifty Smallcap 100 ended 0.81% higher at 18,582.45.

Analysts termed the RBI’s move a ‘bazooka’ stimulus aimed at accelerating growth. “Nifty closing above the 25,000-mark reflects growing optimism. We expect a breakout above the recent consolidation zone,” said Rupak De of LKP Securities.

Rate-sensitive sectors like banking, real estate, automobiles, and consumer durables saw strong buying interest, while experts believe the rally could extend further.

Ajit Mishra of Religare Broking said, “Sectors aligned with lower rates, including railways and real estate, are likely to remain in focus. A ‘buy on dips’ approach with selective stock picking remains advisable.”

Market sentiment remains buoyant as investors expect faster rate transmission, improved liquidity, and fresh investment triggers in the coming quarters.