Stock Market Today: Banking Stocks Lead Charge As BSE Sensex, Nifty 50 Rally After RBI Repo Rate Cut

The Indian stock market saw a strong rebound on June 6, 2025, following the Reserve Bank of India’s (RBI) decision to cut the repo rate by 50 basis points. Before the Monetary Policy Committee (MPC) announcement, markets had shown signs of weakness.

The BSE Sensex, which had closed at 81,442.04 in the previous session, opened slightly lower at 81,434.24 and even touched a low of 81,140.11 during early trading hours.

However, sentiment turned positive soon after the RBI policy update. By 11 AM, the Sensex surged to 82,113.12, gaining 671.08 points or 0.82%. Similarly, the Nifty 50 was up 220.20 points, trading at 24,971.10, a rise of 0.89%.

What Market Expert Said?

Sugandha Sachdeva, Founder of SS WealthStreet, said, “The market was expecting just a 25 basis point rate cut, but then the RBI has front-loaded with a 50 basis point rate cut and a CRR cut of 100 basis points. So this is a very pro-growth RBI policy and is likely to lift sentiments and boost credit growth in the economy in a significant manner.”

She added, “It also signals a bit of caution here because RBI may go in for a pause after this rate cut, which is the third consecutive rate cut this year. So there could be a pause possibly for the next two to three meetings. Apart from this, it also signals a lot of uncertainty because of the global dynamics."

"That’s why the RBI has delivered a front-loaded cut — signaling that growth may not reach 6.5% next year, and they are trying to give it a push. In the short term, especially for banking counters, this is a very positive move. Bank Nifty has already spiraled to a new record high,” Sachdeva asserted.

Also Read: RBI's Hat-trick Rate Cut: Repo Down to 5.5% as Inflation Falls to 3.7%,

On the technical front, Sachdeva pointed out that the Nifty has found support in the 24,400–24,524 zone and is likely to head towards the 25,100 level soon. “If it crosses that, we could see 25,500 and even 25,800 levels are on the cards. Bank Nifty is already targeting the Rs 57,000–Rs 57,200 zone, with support at around 55,500, while key support for Nifty now lies near 24,800,” she added.

Top Gainers: Bank Stocks Lead Rally

Bank Stocks lead the gain on BSE and NSE. The Nifty Bank index also spiked 1.37% to hit 56,525.55, with banking counters leading the rally. 

"The CRR cut complements the repo rate cut. With adequate liquidity in the system, banks are more likely to pass on the benefits of lower interest rates to borrowers, ensuring that the RBI's monetary policy decisions effectively transmit to the real economy," Sachdeva said.

"This is a smart and aggressive move by the central bank to inject liquidity and stimulate economic growth by boosting credit growth and thereby consumption in the economy amidst an environment of global uncertainty," said, Sugandha Sachdeva.

Meanwhile, several key stocks were among the top gainers. Bajaj Finance rallied 3.74% to Rs 9,266.80, Axis Bank rose 2.88% to Rs 1,192.00, and Maruti gained 2.53% to Rs 12,430.00. Kotak Bank added 2.03%, while HDFC Bank and Bajaj Finserv were up 1.65% and 1.79%, respectively. 

Other banking and financial stocks like IndusInd Bank, SBI, and ICICI Bank also saw moderate gains.

Auto, FMCG, and metal stocks contributed to the rally as well. Tata Steel rose 1.23%, Power Grid gained 0.71%, and M&M advanced to Rs 3,068.40. Reliance, Titan, Adani Ports, and NTPC also traded higher. However, a few stocks like Sun Pharma and Nestlé India ended in the red.

Disclaimer: The views expressed in this article are purely informational, and Republic Media Network does not vouch for, promote or endorse any opinions stated by any third party. Stock market and Mutual Fund investments are subject to market risks, and readers are advised to seek expert advice before investing in stocks, derivatives and Mutual Funds.