RBI’s Surprise 50 BPS Rate Cut Lifts Markets, SESEX Soars Over 500 Points, Nifty Above 24,900

Indian Benchmark Indices Sensex and Nifty Ended Higher on June 6, Reversing Early Losses after the Reserve Bank of India (RBI) Cut in its June Monetary Policy Review. The RBI-LED Monetary Policy Committee (MPC), Under Governor Sanjay Malhotra, also shifted the policy stance from ‘Accommodative’ to ‘Neutral’ to ‘Neutral’, A Move that Sparked Optimism’s Across the sectors and Lifted Investor Sentiment.

The Benchmark Sensex Climbed 534 points to its intra-day high of 81,975.79, while the nifty added 175 points to its day’s high of 24,925.95. The positive momentum extended to the broader markets as well, with the nifty midcap index rising 0.5 percent and the nifty smallcap index advancing 0.4 percent. Meanwhile, The India Vix Declined Another 2 Percent, Indicating Reduced Volativity Expectations.

Rate cut aimed at supporting growth, credit revival

According to Sonam Srivastava, Founder and Fund Manager at Wright Research PMS, The Unexpected 50 Basis Point Rate Cut Cut Highlights The RBI’s Growing Focus on Stimulating Economic Growth Amidst modeling Inflation and Global Monetary Easing. “With Real Rates Still Elevated and Domestic Demand Showing Uneven Trends, this move is intended to unlock credit grewth, revive private sector investment, and ease repayments for burdens for burdens,”

Srivastava also noted that key sectors such, auto, banking, and infrastructure are likely to benefits as transmission picks up pace. She added, “The Move Improves The Medium-Term Outlook for Consumption and Capital Expenditure. Bond Markets, Especially in the long-duration segment, are expected to rally, setting the sting for a more Accommodative Environment Going Into The Second Half of the Year. “

In a further signal of confidence, the Central Bank Revised Its CPI Inflation Forecast for FY26 downward to 3.70 percent from 4 percent, While Retaining the GDP Growth Projection at 6.5 percent.

Realty, Auto, and Financial Stocks Lead Rally

The dovish policy tone triggered strong boying in rate-sensitive sector. The nifty realty index surgged Nearly 3 percent, Becoming the Top-Performing Sector, as Investors Cheered The Supportive Outlook for Housing Demand and Affordability. The nifty auto, nifty bank and nifty Financial services indices rose by over 1 percetic economy.

Other Gainers Included The Nifty Metal Index, Up 0.9 Percent, and the Nifty Oil and Gas Index, which added 0.4 percen. However, defensive sector like nifty it and nifty pharma close in the red as investors rotated into cyclic and growth-oriented plays.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, offered a nuanced take on the development. While The 50 Basis Point Rate Cut is Growth-Positive, It Cold Be Marginally Negative for the Markets in the Near-Term. This move appears to front-lord the rate-the rate, the rate, and the shift in stance to ‘Neutral’ Signals that Further Cuts May Not Come Soon Unless Conditions Change Dramatically, “He said.

He added that bank margins could face short-term pressure pressure due to the aggressive cut, Thought any weakness may be offset by the pick-up in creedit demand and improved loan green over time.

The RBI’s Bold and Unexpected Rate Cut delivered a clear message of pro-road intent, reinforcing confidence in India’s Monetary Policy Trajectory. While the move triggered Gains Across Equites, Especially in Interest Rate-Sensitive Sector, Analysts remain watchful of the evolving credit environment and transmission trends. With inflation expectations cooling and global easy cycles underway, the RBI’s Pivot Broad Support a Broad-Based Recovery, even as markets weigh the near-term implications for banking margins and Liquidity.

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