RBI Cuts Repo Rate by 50 bps, CRR Reduced; Lower Inflation Forecast Boosts Market Sentiment
Key Takeaways
- RBI unexpectedly cut repo rate by 50 bps and reduced CRR, releasing ₹2.5 trillion liquidity.
- RBI lowers FY26 inflation forecast to 3.7%; rate cut may boost corporate earnings by 250 bps.
- FPIs withdrew ₹8,749 crore from Indian equities; net sellers at $1.02B on June 6.
- Nifty PSU Bank Index outperforms; Energy, Media, Realty, Auto Indices are improving.
- Bajaj Finance fixed June 16 as record date for 1:2 stock split and 4:1 bonus issue.
Top Stories
RBI unexpectedly cut repo rate by 50 bps, CRR reduced.
On June 6, 2025, the Reserve Bank of India (RBI) unexpectedly cut the repo rate by 50 basis points and reduced the cash reserve ratio (CRR). The Monetary Policy Committee shifted its stance to neutral, signaling flexibility based on incoming data. The CRR cut, to be implemented in phases beginning September 6, 2025, is expected to release roughly Rs 2.5 trillion of liquidity by November 2025.
RBI lowers FY26 inflation forecast to 3.7%, positive sentiment.
On 2025-06-07, Mayuresh Joshi discussed the RBI lowering its inflation forecast to 3.7% for FY26, noting it is a huge positive for consumer discretionary companies. On June 7, 2025, investor sentiment remained positive following the RBI's June 6th repo rate cut and CRR reduction.
RBI rate cut may boost corporate earnings by 250 bps.
On 2025-06-07, it was reported that the RBI's unexpected rate cut of 50 bps and CRR cut of 100 bps are expected to boost corporate earnings by approximately 250 bps. This could lift the lower end of the base earnings growth expectation from 10-12% to 12.5-14.5%.
FPIs: ₹8,749 crore outflow; turned net sellers at $1.02B.
According to NSDL data published on 2025-06-07, Foreign Portfolio Investors (FPIs) withdrew Rs 8,749 crore from Indian equities between 2025-06-02 and 2025-06-06. On June 6, 2025, FPIs turned net sellers, exiting Indian markets with $1.02 billion, but remained net buyers in June 2025 to the tune of ₹4,575.59 crore.
Nifty PSU Bank Index outperforms; Energy, Media, Realty, Auto improving.
On Jun 07, 2025, Relative Rotation Graphs (RRG) show that the Nifty PSU Bank Index continues to build on its relative momentum. The Nifty Energy, Media, Realty, and Auto Indices are inside the improving quadrant and may continue improving their relative performance against the broader markets.
Bajaj Finance: 1:2 stock split, 4:1 bonus issue; shares rose 6%.
On 2025-06-07, it was announced that Bajaj Finance has fixed 2025-06-16 as the record date for its 1:2 stock split and 4:1 bonus equity share issue. Bajaj Finance shares rose 6% post RBI outcome on 2025-06-06.
Analyst Insights
Banks, NBFCs, consumer stocks to perform well: Expert view.
On 2025-06-07, Mayuresh Joshi stated that banks and select leadership NBFCs can continue to perform well due to the rate cut. Select consumer discretionary/staple/durable stocks should start making a comeback, with Marico, Campus Activewear and V-Mart Retail as potential beneficiaries.
Religare Broking favors defence, gold; Nifty50 earnings +11-13%.
On 2025-06-07, Gurpreet Sidana, CEO of Religare Broking Ltd., advised disciplined investing, favouring sectors like defence and gold. He expects Nifty50 earnings to grow by 11–13% in FY26.
InCred Equities ratings: HDFC Bank, Bajaj Finance, Maruti Suzuki...
On 2025-06-07, InCred Equities has an ‘ADD’ rating on HDFC Bank with a target price of Rs 2,200 and maintains an ‘ADD’ rating on Bajaj Finance, with a target of Rs 10,800. Maruti Suzuki carries an ‘ADD’ rating with a Rs 13,621 price target, while InterGlobe Aviation (IndiGo) is rated ‘REDUCE’ with a sharp downside to Rs 3,030.
Analyst ratings: Dixon Technologies, LIC Housing Finance, Crompton...
On 2025-06-07, Trendlyne data indicated that 10 BSE Mid-cap stocks, including Dixon Technologies, LIC Housing Finance, Crompton Greaves, and Ipca Laboratories, received strong analyst ratings and are projected to deliver returns of up to 40%. Aurobindo Pharma has a target price of Rs 1,494, suggesting a potential upside of 29%.
Company Beat
Oberoi Realty, Fortis Healthcare: breakout, potential targets.
On 2025-06-07, Rajesh Palviya recommended Oberoi Realty from the real estate space, anticipating a possible target towards 1950 to 1960 in the coming week. He also suggested Fortis Healthcare from the healthcare space, projecting a possible target of 795 in the coming week.
Technical analysis: Aditya Birla Fashion, IDFC, Zydus Wellness.
On June 7, 2025, Akhil Nallamuthu's article mentioned technical levels for Aditya Birla Fashion, IDFC First Bank and Zydus Wellness stocks. Aditya Birla Fashion's stock (₹77.79) has supports at ₹73-77, ₹68, and ₹62, IDFC First Bank's stock (₹71.52) has been rallying since early April, and Zydus Wellness's stock (₹1,944.95) has been appreciating since early March.
Market Movers
Nifty gained 1.02% weekly, resistance at 25,100-25,150.
On Jun 07, 2025, the Nifty showed signs of upward movement after a two-week consolidation, closing with a weekly gain of 1.02%. Resistance is expected at 25,150 and 25,400, with supports at 24,800 and 24,500.
Stock exchanges ADT hits year high; NSE up 15%.
On June 7, 2025, the average daily turnover (ADT) on Indian stock exchanges reached a new high for the year. The ADT on NSE increased by 15% to ₹1.11 lakh crore, and market capitalization on NSE increased by 5% to ₹4.42 lakh crore.
Retail investors cautiously returning to markets: Tradejini COO.
On June 7, 2025, Tradejini COO Trivesh D noted that retail investors are returning cautiously to both primary and secondary markets, avoiding FOMO. They will benefit if the corporate earnings round.
10-year benchmark security yields closed higher at 6.29%.
On 2025-06-07, following the RBI's unexpected 50 bps repo rate cut, the 10-year benchmark security yields closed five basis points higher at 6.29%.
Midcap, smallcap rally continues; Nifty target 25,400-25,500.
On 2025-06-07, Rajesh Palviya from Axis Securities indicated continued momentum in midcap and smallcap stocks, with the potential for a further 3–4% rally. Nifty managed to break above the range it was stuck in and touched the 25,000 levels, with a potential rally towards 25,400 to 25,500 in the coming week.
Dividend Announcements
Ex-dividend dates: Nelco, Tata Investment, Tata Elxsi...
On 2025-06-07, several companies announced their ex-dividend dates: Nelco (Rs 1 on 2025-06-09), Tata Investment Corporation (Rs 27 on 2025-06-10), Tata Elxsi (Rs 75 on 2025-06-11), Tata Chemicals (Rs 11 on 2025-06-12), Trent (Rs 5 on 2025-06-12), ACC (Rs 7.5 on 2025-06-13), Adani Enterprises (Rs 1.3 on 2025-06-13), APSEZ (Rs 7 on 2025-06-13), Ambuja Cements (Rs 2 on 2025-06-13), and Adani Total Gas (Rs 0.25 on 2025-06-13).
Global Markets
US tariff negotiations with EU, India, China ongoing.
As of 2025-06-07, tariff negotiations between the U.S. and its trading partners remain fluid. The European Union and India are working toward ironing out deals, and further U.S.-China talks are promised.
Most Searched Stocks
Most Searched Stocks on June 6, 2025: IRFC, Suzlon, IREDA...
On Jun 06 2025, the most searched stocks included: IRFC (146.41), Suzlon Energy (66.71), IREDA (174.87), Tata Motors (711.0), YES Bank (20.85), HDFC Bank (1978.7), NHPC (89.31), RVNL (428.65), SBI (813.05), Tata Power (399.55) and many others.