In a week marked by major policy announcements, strategic deals, and sectoral movements, the Reserve Bank of India (RBI) took centre stage by delivering a surprise 50 basis points rate cut on June 6, bringing the repo rate down to 5.50%. This marked the third straight reduction in 2025, totaling a 100 bps cut to support growth amid global uncertainty. RBI Governor Sanjay Malhotra signaled continued comfort with inflation, lowering the CPI forecast for FY26 to 3.7% from 4% and retaining GDP growth expectations at 6.5% for the year. In a liquidity-boosting move, the central bank also slashed the Cash Reserve Ratio (CRR) by 100 bps to 3%, to be implemented in four tranches between September and November, unlocking ₹2.5 lakh crore into the banking system. Further, the RBI raised the loan-to-value (LTV) cap for small gold loans up to ₹2.5 lakh from 75% to 85%, a move that significantly benefited gold financing stocks.
Among corporate highlights, the RBI gave a clean regulatory signal to IndusInd Bank, affirming its accounting standards, which pushed its shares up by over 5%. Infrastructure firm Ashoka Buildcon, however, faced a setback as its ₹1,673 crore project under CIDCO’s NAINA initiative encountered execution hurdles.
In the energy and defense sectors, Coal India signed a key MoU with Indian Port Rail & Ropeway Corporation to develop rail infrastructure, while GRSE expanded its global presence by signing MoUs in Sweden and Denmark for cruise vessel and marine propulsion collaboration. Similarly, Bharat Electronics Limited (BEL) secured orders worth ₹2,323 crore from MDL and GRSE, strengthening its defense manufacturing portfolio.
JSW Energy exited Beempow Energy for ₹302.66 crore, completing a strategic realignment, and RailTel bagged a ₹274 crore ITMS project in Maharashtra’s Vidarbha Circle, aimed at enhancing road safety across blackspots and accident-prone zones. Meanwhile, KEC International won ₹2,211 crore worth of new orders across international T&D, pipelines, and cable supply businesses, reinforcing its infrastructure footprint in the Middle East and Africa.
In the equity markets, Gravita India surged 4% on expectations of a government-backed critical mineral recycling scheme. Tata Investment gained 8% on reports of Tata Capital’s impending IPO, while shares of ICICI Lombard and Go Digit also moved higher as the government weighed a 25% hike in third-party motor insurance premiums.
Lastly, global cues remained mixed. While Asian markets were relatively steady, U.S. indices such as Nasdaq and S&P 500 dipped amid fresh tariff tensions and a high-profile online spat between Elon Musk and Donald Trump—an episode that dented Tesla’s valuation and contributed to market volatility.
Overall, the week was dominated by aggressive monetary easing, strong defense-industry momentum, and corporate actions that may shape the economic narrative for the weeks ahead.
