Markets Wrap: Sensex, Nifty Rebound with Over 1% Weekly Gain; RBI Rate Cut, Sectoral Rallies Lift Sentiment
By Business Desk | June 7, 2025
MUMBAI – Indian equity markets bounced back this week, snapping a multi-week losing streak as the Sensex and Nifty surged over 1%, largely buoyed by a strong rally in the final trading session and renewed investor optimism following the Reserve Bank of India’s rate cut.
RBI Boost Lifts Indices
The Nifty 50 jumped 252 points (1.02%) on monetary policy day, erasing two weeks of losses. Angel One noted a notable long build-up in index futures, indicating bullish sentiment. Bank Nifty led the charge, scaling a fresh all-time high, rising 1.4% intraday, with a 13% surge in open interest, underlining strong buying momentum.
Sector Watch: Auto, Realty, and Metals Outperform
- The Auto sector, highly sensitive to interest rates, rebounded sharply from its 20-EMA support, breaking past key resistance levels and setting the tone for continued positive movement.
- Realty stocks topped the sectoral charts with 4.6% gains, followed by Metals, which logged their best weekly performance with a 2% rise.
- Gold finance stocks also rallied 2–7% after the RBI raised Loan-to-Value (LTV) ratio for sub-₹2.5 lakh gold loans to 85%.
- However, Media, IT, and Energy stocks underperformed.
Market Breadth and Technical Outlook
- India VIX, the volatility index, cooled further to a 9-week low, suggesting lower risk perception.
- More than 75% of Nifty 50 and Nifty 500 stocks are trading above their 20- and 50-day EMAs, reflecting broad-based market strength.
- Angel One’s technical analysis suggests that post-May’s consolidation phase, the Nifty has broken out of a congestion zone. The index is now eyeing 25,300 in the near term, corresponding to the 78.6% Fibonacci retracement level.
Global Cues Mixed
- Asian markets were mixed: Japan’s Nikkei gained 0.5%, while Hong Kong’s Hang Seng slipped by the same margin.
- European indices remained largely flat, offering little directional support.
Stock Movers & Corporate Highlights
- Tata Investments jumped 8% on reports of SEBI’s approval for Tata Capital’s ₹17,200 crore IPO.
- Hindustan Zinc gained nearly 3% to hit a 5-month high as silver prices soared to ₹1.05 lakh/kg amid global tensions.
- Bajaj Finserv initially rose 2.35% before paring gains after promoters launched a ₹5,800 crore stake sale via block deal.
- SBI Cards climbed 7% weekly, confirming technical breakouts on daily and weekly charts.
- AU Small Finance Bank rose 4%, with RSI hitting 71, signaling strong breakout patterns across all timeframes.
- Jindal Stainless rallied 3% on a trendline breakout, supported by a 6%+ rise in open interest.
- Imagicaaworld Entertainment Ltd. secured a ₹275 crore loan from HDFC Bank to fund acquisitions of theme parks in Lonavala and Shirdi.
- Bajaj Finance neared its all-time high, just 3% shy, with breakouts backed by above-average volumes.
In the News:
- Starlink, Elon Musk’s satellite broadband venture, received a GMPCS licence from the Department of Telecommunications and is now awaiting In-SPACe approval to launch operations in India.
- SEBI has ordered attachment of assets worth ₹2.1 crore belonging to Mehul Choksi, in an insider trading case linked to Gitanjali Gems.
- The RBI has rejected one banking licence application as evaluations continue for applicants including AU Small Finance, Ujjivan, Fino, Annapurna, and VFS, under a committee chaired by a former Deputy Governor.
Stocks and Sectors to Watch:
- M&M, NIFTY AUTO sector
- Gold Finance, Banking, and Consumer Lending stocks
- Continued momentum expected in SBI Cards, AU SFB, and Jindal Stainless
As investor sentiment strengthens and technical patterns support further upside, analysts believe Indian equities are poised for continued gains — with macro cues, monetary policy, and global risk appetite being key determinants in the coming sessions.
(This article makes no recommendation for buy or sell of shares of any company or any kind of trades in the stock market)
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