Markets March Ahead: RBI Rate Cut Sparks Sector-Wide Surge

Indian Developments

For the week ending June 6, 2025, the Indian stock market logs weekly gain, buoyed by 50 bps rate cut and reduction in CRR by Reserve Bank of India (RBI), easing inflation, and positive global cues. DIIs have been net buyers to the tune of approximately ?2,832 crore, effectively offsetting the net selling by FIIs.

Despite the slight pullback earlier this week, gold prices held steady around ?96,786.

The rupee remained relatively stable and stands at 85.71 levels against US dollar supported by RBI interventions in the forex market.

The Nifty 50 ended the week at 25,003 marking a gain of 1.02%, while Nifty Midcap 150 and Nifty Small cap 250 surging at 2.67% (21,688) and 2.69% (17,285) respectively during the period.

Sectoral Developments

For the week ending June 6, 2025, the Indian stock market saw a broad-based rally, with most sectoral indices ending in the green, driven by the RBI’s rate cut.

Nifty Realty led the gains at 9.51%, followed by Nifty Metal (2.32%), Nifty PSU Bank (2.73%) and Nifty Realty (1.78%). Nifty Financial Services, Nifty Pharma and Nifty Auto registered a weekly positive performance for the period at 1.32%,1.60% and 1.44% respectively.

On the other end of the spectrum, Nifty IT and Nifty Media suffered mil losses of 0.07% and 0.32% respectively.

Global Developments

Global equity markets posted mixed but generally negative performance driven by weak US job data, rising bond yields, geopolitical tensions and global growth concerns.

Emerging markets saw mixed performance, with gains in India and Brazil offset by weakness in some Southeast Asian markets.

US Indices remained volatile throughout the week and ultimately closed in negative territory. S&P 500 index ,Dow Jones and Nasdaq 100 were marginally lower vis-à-vis previous week by 0.53% , 0.25% and 0.80%respectively. European Markets FTSE 100 and DAX markets experienced mix reactions dipped slightly by 0.01% and 0.17% respectively. Asian Market Hang Seng led the losses with 0.63% drop, while Shanghai posted modest gains of 0.04% and Kospi outperformed with 1.49% rise.

Other Markets:

• Brent crude prices after 3 weeks of decline marking weekly gain of 2.1% at $ 67.02 per barrel.
• The rupee was depreciated to 85.71 levels against the US dollar.
• The 10 Year Benchmark G-Sec yield closed at 6.21% this week.

Source: www.nseindices.com; google finance, MCX Gold Prices; www.rbi.org.in; Morningstar and tradingeconomics.com, ccilindia.com, Economic times

Data for week ended on June 6th , 2025.

Disclaimers:

The views and investment tips expressed by experts are their own and are meant for informational purposes only and should not be construed as investment advice. Investors should check with their financial advisors before taking any investment decisions.

The word ‘more’ does not imply more returns or assurance of scheme performance.it refers to the additional value provided by the joint venture, as compared to Baroda AMC and BNP Paribas AMC individually.

In the preparation of the material contained in this document, Baroda BNP Paribas Asset Management India Ltd. (“AMC”) (formerly BNP Paribas Asset Management India Private Limited) has used information that is publicly available, including information developed in-house. The AMC, however, does not warrant the accuracy, reasonableness and/or completeness of any information. This document may contain statements/opinions/ recommendations, which contain words, or phrases such as “expect”, “believe” and similar expressions or variations of such expressions that are “forward looking statements”. Actual results may differ materially from those suggested by the forward looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, which have an impact on our investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices, etc. The AMC (including its affiliates), Baroda BNP Paribas Mutual Fund (“Mutual Fund”), its sponsor / trustee and any of its officers, directors, personnel and employees, shall not be liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this document in any manner. The recipient alone shall be fully responsible / liable for any decision taken based on this document. All figures and other data given in this document are dated and may or may not be relevant at a future date. Prospective investors are therefore advised to consult their own legal, tax and financial advisors to determine possible tax, legal and other financial implication or consequences of subscribing to the units of the schemes of Baroda BNP Paribas Mutual Fund.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

Download Pdf

View All