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The Hindu
2 days ago
- Business
- The Hindu
Indices rise 1% as RBI slashes repo rate by 50 basis points
Benchmark indices rose nearly 1% on Friday following the Reserve Bank of India (RBI)'s repo rate cut of 50 basis points. Markets opened lower and hit an intra-day low within hours of the opening trading session, but shot up immediately after the central bank announced easing of monetary policy. The BSE Sensex rose 0.9% to close at 82,189 points, while Nifty climbed 1% to settle at 25,003 points. Barring Nifty Media, all indices improved, with Nifty realty indices increasing over 4%. The rupee appreciated 11 paise to 85.63 a dollar in response to RBI's dovish moves and changing stance. 'This decisive, growth-driven policy move provided a significant boost to the local currency and fueled optimism among domestic equity investors,' said Dilip Parmar, senior research analyst, HDFC Securities. He, however, cautioned that a 'resurgent Dollar Index and weakening regional currencies' could limit further gains for the rupee. Going by the expectation of experts who had forecast the repo rates to settle down at 5.5% by the end of the year, the central bank front loaded the rate cuts along with cutting cash reserve ratio by 100 basis points. A basis point is 1/100th of a percentage. The RBI also changed stance to neutral from accommodative. 'From a technical perspective, Nifty posted a strong close and is on the verge of breaking above its recent swing high of 25,116. A sustained move above this level could propel the index toward 25,307…On the downside, 24,845 may offer near-term support,' said Devarsh Vakil, head of Prime Research at HDFC Securities.
Mint
2 days ago
- Business
- Mint
Banking stocks rally as RBI delivers surprise rate and CRR cuts; Nifty Bank jumps 1.6%, Nifty Fin Services surges 2%
Shares of banking and financial services companies soared on Friday after the Reserve Bank of India (RBI) delivered a larger-than-expected 50 basis point (bps) cut in the benchmark repo rate and a surprise 100 bps reduction in the Cash Reserve Ratio (CRR). The Monetary Policy Committee's (MPC) aggressive move, along with a shift in policy stance from 'accommodative' to 'neutral', injected fresh optimism into the markets. The RBI cut the repo rate to 5.50 percent and slashed the CRR by 100 bps in a staggered manner, signaling a clear pivot toward boosting liquidity and credit growth. The CRR, which dictates the portion of deposits that banks must park with the central bank, will now be reduced by 25 bps each over four tranches starting September 6 through November 29, 2025. According to RBI Governor Sanjay Malhotra, this move will infuse approximately ₹ 2.5 trillion into the banking system by the end of the year. In tandem, the Standing Deposit Facility (SDF) rate has been adjusted to 5.25 percent and the Marginal Standing Facility (MSF) rate now stands at 5.75 percent. Reacting to the policy announcement, the Nifty Bank index surged 1.66 percent, Nifty Financial Services gained nearly 2 percent, Nifty Private Bank climbed 2 percent, and the Nifty PSU Bank index advanced 0.6 percent. IDFC First Bank led the gainers, rallying 7 percent, while AU Bank climbed 4 percent. Axis Bank, HDFC Bank, and IndusInd Bank also rose 2–3 percent intraday. Devarsh Vakil of HDFC Securities termed the policy a 'jumbo rate cut' and emphasized that the liquidity injection from the CRR reduction will aid bank margins and bolster private sector investment in the second half of FY26. While global headwinds remain—from US tariffs to geopolitical tensions—the growth-inflation dynamic offered sufficient rationale for monetary easing. Chanchal Agarwal, CIO of Equirus Credence Family Office, highlighted that the RBI's cumulative easing of 100 bps in 2025, coupled with a record ₹ 2.69 trillion dividend and ₹ 9.5 trillion in liquidity infusions since January, marks a strong pro-growth stance. He, however, cautioned that further rate cuts may be limited going forward, especially with the MPC adopting a 'neutral' stance. Sundeep Mohindru of M1xchange noted the policy's positive implications for MSMEs. 'Lower rates and higher liquidity will improve formal credit flow to small businesses through microfinance and TReDS platforms. The CRR cut ensures more active participation by banks,' he said. InCred Equities, in its latest banking sector update, cautioned that the repo rate downcycle could squeeze net interest margins (NIMs), particularly for state-owned enterprises (SOE) banks. Large private banks, they said, are better positioned to weather the margin pressure due to their stronger starting point and more flexible pricing strategies. The brokerage maintained an 'ADD' rating on Axis Bank, HDFC Bank, and ICICI Bank, and said HDFC Bank may outperform ICICI over the coming years due to stronger deposit growth. Among PSUs, Punjab National Bank and Canara Bank earned 'ADD' ratings for their on-balance sheet liquidity buffers and margin levers. However, State Bank of India and Bank of Baroda received 'HOLD' ratings due to elevated valuations. In conclusion, the RBI's surprise double-barreled action—cutting both the repo rate and CRR—has breathed fresh life into Indian banking stocks, with broader implications for liquidity, credit growth, and private investment. While the front-loaded easing cycle could taper off, analysts believe that the immediate impact will be supportive of economic momentum and market sentiment. As transmission kicks in and liquidity flows rise, sectors such as banking, real estate, and MSMEs are expected to be the key beneficiaries of this bold monetary policy shift. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
2 days ago
- Business
- Mint
Stocks to buy under ₹100: Experts recommend six shares to buy today — 6 June 2025
Stock market today: Ahead of the weekly expiry, the Indian stock market ended higher on Thursday. The Nifty 50 index ended 130 points higher at 24,750, the BSE Sensex finished 443 points upside at 81,442, while the Bank Nifty index added 84 points and closed at 55,760. Eternal, Trent and Dr Reddy were major gainers on the Nifty, while major losers were IndusInd Bank, Tata Consumer, and Axis Bank. Trading volumes on the NSE cash market were higher by 6% compared to Wednesday's session. The Mid-cap and the Small-cap indices continued to outperform the benchmark. The Nifty Mid-cap 100 Index rose by 0.53%, while the Nifty Small-cap 100 Index surged by 0.96%. Nifty small-cap index continued its upward journey for the fourth day to close at a four-month high. Market breadth remained positive for the fourth consecutive day, with advancing stocks outpacing declining ones, as indicated by a BSE advance-decline ratio of 1.33. On the outlook of the Nifty 50 today, Devarsh Vakil, Head of Prime Research at HDFC Securities, said, "Technically, the Nifty has regained its level above the 20-day EMA, indicating a potential strengthening of the underlying trend. The index appears to have established a strong base near 24,500. On the upside, 24,900 could offer short-term resistance for the Nifty, as investors also looked ahead to the Reserve Bank of India's (RBI) monetary policy decision on June 6, with the central bank widely expected to cut interest rates by 25 basis points for the third consecutive time." Asked about the outlook of the Bank Nifty today, Om Mehra, Technical Research Analyst, SAMCO Securities, said, "The Bank Nifty index is trading above all major moving averages, and the ascending triangle visible on the daily chart suggests the potential for an upward push. A close above 56,162 could open room for a fresh leg of gains." Speaking on the outlook for the Indian stock market today, Siddhartha Khemka, Head of Research — Wealth Management at Motilal Oswal, said, 'We expect markets to consolidate with a positive bias, tracking global markets, macro-economic indicators and progress in US-India trade negotiations.' Regarding stocks to buy today, market experts Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher; Mahesh M Ojha, AVP — Research at Hensex Securities; Sugandha Sachdeva, Founder of SS WealthStreet; and Anshul Jain, Head of Research at Lakshmishree Investment and Securities — recommended these six intraday stocks for today under ₹ 100: Shriram Properties, Subex, Sagility India, Ujjivan Small Finance Bank, YATRA, and Ugar Sugar. 1] Shriram Properties: Buy at ₹ 97.95, Target ₹ 103, Stop Loss ₹ 95.50; and 2] Subex: Buy at ₹ 15.30, Target ₹ 18, Stop Loss ₹ 14. 3] Sagility India: Buy at ₹ 38.50 to ₹ 39.10, Targets ₹ 40.75, ₹ 42.50, ₹ 45, Stop Loss ₹ 37.70; and 4] Ujjivan Small Finance Bank: Buy at ₹ 44 to ₹ 44.60, Targets ₹ 45.60, ₹ 46.50, ₹ 48, ₹ 50, Stop Loss ₹ 42.80. 5] YATRA: Buy at ₹ 95.90, Targets ₹ 100.80, ₹ 104, Stop Loss ₹ 93.80. 6] Ugar Sugar: Buy at ₹ 49.70, Target ₹ 53, Stop Loss ₹ 48.50.
Mint
2 days ago
- Business
- Mint
Stocks to buy under ₹100: Experts recommend six shares to buy today — 6 June 2025
Stock market today: Ahead of the weekly expiry, the Indian stock market ended higher on Thursday. The Nifty 50 index ended 130 points higher at 24,750, the BSE Sensex finished 443 points upside at 81,442, while the Bank Nifty index added 84 points and closed at 55,760. Eternal, Trent and Dr Reddy were major gainers on the Nifty, while major losers were IndusInd Bank, Tata Consumer, and Axis Bank. Trading volumes on the NSE cash market were higher by 6% compared to Wednesday's session. The Mid-cap and the Small-cap indices continued to outperform the benchmark. The Nifty Mid-cap 100 Index rose by 0.53%, while the Nifty Small-cap 100 Index surged by 0.96%. Nifty small-cap index continued its upward journey for the fourth day to close at a four-month high. Market breadth remained positive for the fourth consecutive day, with advancing stocks outpacing declining ones, as indicated by a BSE advance-decline ratio of 1.33. On the outlook of the Nifty 50 today, Devarsh Vakil, Head of Prime Research at HDFC Securities, said, "Technically, the Nifty has regained its level above the 20-day EMA, indicating a potential strengthening of the underlying trend. The index appears to have established a strong base near 24,500. On the upside, 24,900 could offer short-term resistance for the Nifty, as investors also looked ahead to the Reserve Bank of India's (RBI) monetary policy decision on June 6, with the central bank widely expected to cut interest rates by 25 basis points for the third consecutive time." Asked about the outlook of the Bank Nifty today, Om Mehra, Technical Research Analyst, SAMCO Securities, said, "The Bank Nifty index is trading above all major moving averages, and the ascending triangle visible on the daily chart suggests the potential for an upward push. A close above 56,162 could open room for a fresh leg of gains." Speaking on the outlook for the Indian stock market today, Siddhartha Khemka, Head of Research — Wealth Management at Motilal Oswal, said, 'We expect markets to consolidate with a positive bias, tracking global markets, macro-economic indicators and progress in US-India trade negotiations.' Regarding stocks to buy today, market experts Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher; Mahesh M Ojha, AVP — Research at Hensex Securities; Sugandha Sachdeva, Founder of SS WealthStreet; and Anshul Jain, Head of Research at Lakshmishree Investment and Securities — recommended these six intraday stocks for today under ₹ 100: Shriram Properties, Subex, Sagility India, Ujjivan Small Finance Bank, YATRA, and Ugar Sugar. 1] Shriram Properties: Buy at ₹ 97.95, Target ₹ 103, Stop Loss ₹ 95.50; and 2] Subex: Buy at ₹ 15.30, Target ₹ 18, Stop Loss ₹ 14. 3] Sagility India: Buy at ₹ 38.50 to ₹ 39.10, Targets ₹ 40.75, ₹ 42.50, ₹ 45, Stop Loss ₹ 37.70; and 4] Ujjivan Small Finance Bank: Buy at ₹ 44 to ₹ 44.60, Targets ₹ 45.60, ₹ 46.50, ₹ 48, ₹ 50, Stop Loss ₹ 42.80. 5] YATRA: Buy at ₹ 95.90, Targets ₹ 100.80, ₹ 104, Stop Loss ₹ 93.80. 6] Ugar Sugar: Buy at ₹ 49.70, Target ₹ 53, Stop Loss ₹ 48.50. Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
Hans India
3 days ago
- Business
- Hans India
Trade Setup for June 6: Nifty eyes RBI cue to breakout towards 25,000+
Indian equities saw a volatile but rangebound session on June 5, with the Nifty 50 closing at 24,751, up 131 points. Despite midday gains of nearly 200 points, the index gave up most of them before ending higher. Support at 24,500 remains strong, keeping the bullish bias intact. 🔑 Key Technical Levels Support: 24,500 Immediate Resistance: 24,900 Breakout Trigger: Sustained close above 24,900 could open doors to 25,000+ 🏦 Eyes on RBI Markets are pricing in a 25 bps repo rate cut by the RBI on June 6 — the third cut this year. A deeper cut could spark bullish sentiment and push Nifty past its current ceiling. 💹 Sector & Stock Highlights Outperformers: Realty, Pharma, Healthcare Underperformers: PSU Banks, Auto, Media Top Gainers: Eicher Motors, Trent, Dr Reddy's Top Laggards: IndusInd Bank, Tata Consumer, Axis Bank Buzzing Stocks: Reliance Industries (+1%) on JPMorgan upgrade DLF, Godrej Properties on continued realty rally Hindustan Zinc (+6%) amid record silver prices 📊 Broader Market Trends Nifty Midcap 100: +0.53% Nifty Smallcap 100: +0.96% (4-month high) 📉 Analyst Views Golden crossover on Nifty's daily chart hints at short-term uptrend (Rupak De) Base formation near 24,500 supports bullish continuation (Devarsh Vakil) Watch for a decisive break above 24,900 for momentum to pick up (Om Mehra) Strategy for Traders: Long bias if Nifty holds above 24,500 and breaks past 24,900 Cautious near resistance if RBI outcome disappoints Watch rate-sensitive sectors (Realty, Banks, Auto) closely post-policy
