RBI Cuts Repo Rate and CRR; Sensex and Nifty Surge
Key Takeaways
- RBI unexpectedly cut the repo rate by 50 bps to 5.5% and CRR by 100 bps to 3%.
- Sensex jumped 747 points to 82,188, and Nifty rose 252 points to 25,003 after RBI's rate cut.
- RBI's CRR cut of 100 bps is expected to inject ₹2.5 lakh crore into banking system.
- Bajaj Finance surged 4.93%, Axis Bank climbed 3.15%, and Maruti advanced 2.64% after RBI rate cut.
- Zerodha reported a 62% profit increase to ₹4,700 crore in FY24, with no IPO plans.
Top Stories
RBI cuts repo rate by 50 bps, CRR by 100 bps.
On June 6, 2025, the Reserve Bank of India (RBI) unexpectedly slashed the repo rate by 50 basis points to 5.5% and the cash reserve ratio (CRR) by 100 basis points to 3%. This decision aimed to boost growth and is expected to lower borrowing costs for NBFCs, support loan growth, and ease margin pressures.
Sensex and Nifty surge after RBI rate cut.
On June 6, 2025, the Sensex closed up by approximately 747 points at 82,189, and the Nifty closed 249 points higher at 25,003, following the RBI's rate cut. The BSE Sensex jumped 747 points (0.92%) to 82,188, and the NSE Nifty rose 252 points (1.02%) to close at 25,003.
RBI's CRR cut to inject ₹2.5 lakh crore.
On June 6, 2025, the RBI announced a CRR cut of 100 bps, expected to inject ₹2.5 lakh crore into the banking system by November 2025, implemented in four tranches starting September 2025. The move is seen as a game-changer for the credit ecosystem.
Bajaj Finance, Axis Bank, Maruti surge after RBI rate cut.
On June 6, 2025, following the RBI's rate cut announcement, Bajaj Finance Ltd. shares surged 4.93 per cent to ₹9,373.05, Axis Bank climbed 3.15 per cent to ₹1,195.20, Maruti Suzuki advanced 2.64 per cent to ₹12,443.90, IndusInd Bank gained 2.50 per cent to ₹823.20, and Bajaj Finserv added 2.36 per cent to ₹1,989.40.
Zerodha: No IPO plans, ₹4,700 crore profit in FY24.
As of June 6, 2025, Zerodha manages approximately 11% of India’s retail and HNI equity holdings and has no IPO plans, prioritizing operational independence and stability. Zerodha anticipates a 10–20% slowdown in activity due to slower market activity in Q1 FY26 but aims to reach Rs 10,000 crore in revenue without increasing brokerage fees; it reported a 62% increase in profit, reaching Rs 4,700 crore, and a 21% growth in revenues to Rs 8,320 crore in FY24.
Policy Updates
RBI emphasizes demand support with cumulative 100 bps rate cut.
On June 6, 2025, it was reported that the cumulative 100 bps rate cut since February 2025 underscores the RBI’s urgency to support demand. During an MPC Meeting, the RBI, led by governor Sanjay Malhotra, cut the repo rate by 50 basis points to 5.5%, shifting to a 'neutral' stance.
RBI retains GDP growth projection at 6.5%.
On June 6, 2025, the central bank retained GDP growth projection for the current fiscal at 6.5 per cent.
Analyst Insights
Kotak analysts question high valuations of Indian equity.
On June 6, 2025, Kotak Institutional Equities analyst Sanjeev Prasad and his team questioned the high valuations of Indian equity, noting cement makers are more than twice as expensive as their peers in other major markets.
Company Beat
Bajaj Finserv promoters likely sold ₹5,506 crore equity.
On June 6, 2025, promoters of Bajaj Finserv likely sold equity worth ₹5,506 crore in a large block deal at ₹1,925 apiece. Despite the large deal, the stock remained steady and was trading flat at ₹1,940 following the transaction.
Adani Enterprises: Mixed performance with monthly gains, yearly losses.
On June 6, 2025, Adani Ent. Stock Liveblog provided real-time updates and analysis. Adani Enterprises finished the day at Rs 2534.20, with a percentage change of 1.19%, a 1.54% increase to Rs 2542.9, and a 6.39% return over the past month, but recorded a -19.75% return over the last six months.
Ashoka Buildcon secures ITMS project, profit increases 73.2%.
Ashoka Buildcon, with its subsidiary APTPL, received LOIs from the Maharashtra Motor Vehicles Department for an ITMS project valued at Rs 1,387.19 crore, involving design, implementation, operation, and maintenance across multiple regions. The company also reported a 73.2% year-on-year increase in net profit for Q4, reaching Rs 432.2 crore.
Sun Pharma and Bharti Airtel shares end marginally lower.
Adani Ports SEZ stock closes up 1.03%.
On June 6, 2025, Adani Ports SEZ stock closed at Rs 1471.7, a rise of 1.03%.
Tata Motors closes with a small rise of 0.12%.
On June 6, 2025, Tata Motors concluded the day at Rs 711.0, marking a small rise of 0.12% from the previous close.
Bharti Hexacom downgraded, shares decline nearly 3%.
On June 6, 2025, Bharti Hexacom shares declined nearly 3% to Rs 1,827 on the BSE after Motilal Oswal downgraded the stock to ‘Neutral’ with a target price of Rs 1,900, citing a steep 40% valuation premium compared to Bharti Airtel. At 10:04 am, Bharti Hexacom was trading 2% lower at Rs 1,841.2 on the BSE.
MCX rallies 4.5% due to surge in trade volumes.
On June 6, 2025, shares of Multi Commodity Exchange of India (MCX) rallied 4.5% to Rs 7,419.65 on the BSE due to a significant surge in trade volumes.
Azad Engineering tumbles 5.9% on BSE.
On June 6, 2025, shares of Azad Engineering tumbled 5.9% to Rs 1,649.95 on the BSE, as the microcap index ended the day with marginal losses of 0.8%.
Market Movers
FIIs offload equities worth ₹208.47 crore on June 6.
On June 6, 2025, Foreign Institutional Investors (FIIs) sold equities worth ₹208.47 crore. Meanwhile, Domestic Institutional Investors (DIIs) were net buyers at ₹2,382 crore.
Stocks hit 52-week highs after RBI rate cut.
On June 6, 2025, following the RBI rate cut, several large and midcap stocks hit 52-week highs. These included SBI Card, Muthoot Finance, Bajaj Holdings & Investment, HDFC AMC, HDFC Bank, BSE, and SRF.
Sensex up 509 points, Nifty50 up 166 points.
On June 6, 2025, the 30-share BSE Sensex was up 509.78 points at 81951.82 and the NSE Nifty50 index was trading 166.2 points up at 24917.1. Power stocks were trading higher.
Nifty Bank index closes 1.47% up.
GIFT Nifty signals muted start for Dalal Street.
On June 6, 2025, GIFT Nifty on the NSE IX traded lower by 12.50 points, or 0.05 per cent, at 24,842, signaling that Dalal Street was headed for muted start on Friday.
India 10-year bond yield rises to 6.03%.
On 2025-06-06, India 10-year bond yield rose 0.05 per cent to 6.03 after trading in 6.02-6.04 range.
Rate Cut Impact
RBI move to enhance liquidity, encourage capital expenditure.
On June 6, 2025, Divam Sharma, Founder of Green Portfolio PMS, said that the RBI's move is likely to enhance liquidity in the system, making borrowing cheaper and encouraging companies to pursue capital expenditure.
RBI flattens transmission curve by lowering price and quantity.
On June 6, 2025, according to Arsh Mogre, Economist at PL Capital, by lowering both the price (repo) and quantity (CRR) of money, the RBI has flattened the transmission curve. The CRR cut in particular offsets short-term pressures on margins from falling lending rates.
Systemic liquidity and deposit rate cuts visible for NIMs.
On June 6, 2025, Naveen Kulkarni, CIO at Axis Securities PMS, said that tailwinds for NIMs from improving systemic liquidity and deposit rate cuts are visible. He added that even as H1FY26 will see a more pronounced impact of the rate cut on NIMs, some respite is expected over H2FY26.
Sector Spotlight
Realty stocks surge 4.7% after RBI rate cut.
On June 6, 2025, realty stocks closed 4.7% higher after the RBI cut the repo rate by 50 bps. Godrej Properties, Oberoi Realty, and DLF closed over 6% higher, while Prestige Estate, Sobha, Lodha, and Phoenix Mills were up between 3-5.5%.
Financial stocks rise; Bank of Baroda, Canara Bank fall.
On June 6, 2025, financial services stocks, including ICICI General Insurance, Muthoot Finance, HDFC AMC, Shriram Finance, Cholamandalam Investment and SBI Cards, rose between 5-8% following the repo rate cut and CRR being slashed by 100 bps; the index closed 2.09% higher. Top gainers in the Nifty Bank index included IDFC First Bank Ltd., Au Small Finance Bank Ltd., Axis Bank Ltd., IndusInd Bank Ltd. and Kotak Mahindra Bank Ltd., while Bank of Baroda and Canara Bank finished as the top losers in the Nifty Bank index.
Rupee Watch
Rupee strengthens to 85.68 against US dollar.
On June 6, 2025, the Indian rupee strengthened 11 paise to close at 85.68 against the US dollar, supported by the Reserve Bank's repo rate cut. The rupee snapped its two-day losing streak and closed 8 paise higher at 85.79 against the US dollar on Thursday, supported by positive domestic equities and a rise in Asian currencies.