The Nifty 50 surged past the 25,000 mark for the first time since May 27, rallying 253.65 points or 1.02% to 25,004.55 on June 6, following the Reserve Bank of India’s unexpected monetary easing. The sharp rebound in the benchmark index came after the RBI’s Monetary Policy Committee (MPC) announced a 50 basis point cut in the repo rate, lowering it from 6.00% to 5.50%, and shifted its policy stance from “accommodative” to “neutral.”
The rally was broad-based, with rate-sensitive sectors like real estate, NBFCs, and banking stocks leading the charge. The RBI’s policy decision was backed by a 5-1 majority vote and is aimed at supporting growth amid global uncertainties and easing inflationary pressures.
The central bank also revised the CPI inflation forecast for FY26 to 3.7%, down from the previous estimate of 4%. The inflation outlook reflects benign food prices, record Rabi crop production, and the forecast of a favourable monsoon. Additionally, the Cash Reserve Ratio (CRR) will be reduced from 4% to 3% in four tranches of 25 bps starting September 2025, further supporting liquidity.
Investor sentiment was buoyed by expectations of stronger credit growth, improved affordability in housing, and enhanced liquidity in the system—all pointing to a more accommodative macro environment for equities.
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