Trendlyne Marketwatch
Trendlyne Marketwatch
06 Jun 2025, 03:56PM
Market closes higher, RBI’s MPC slashes the Cash Reserve Ratio from 4% to 3%
By Trendlyne Analysis

 

 

Nifty 50 closed at 25,003.05 (252.2, 1.0%), BSE Sensex closed at 82,188.99 (747.0, 0.9%) while the broader Nifty 500 closed at 23,165.10 (230.6, 1.0%). Market breadth is in the green. Of the 2,452 stocks traded today, 1,294 were in the positive territory and 1,107 were negative.

Indian indices closed higher after the Reserve Bank of India announced a larger-than-expected rate cut. RBI lowered the repo rate by 50 bps to 5.5%. It also slashed the Cash Reserve Ratio (CRR) by 100 bps to 3%, which is expected to inject Rs 2.5 lakh crore in liquidity and lower funding costs for banks. The Indian volatility index, Nifty VIX, fell around 3% and closed at around 14.6 points. Tejas Networks closed 1.6% higher after the Ministry of Communications awarded a Rs 123 crore PLI scheme for telecom and networking products.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green. BSE Realty Index and Nifty Private Bank closed higher. According to Trendlyne’s sector dashboard, Diversified emerged as the best-performing sector of the day, with a rise of 4.2%.

European indices are trading mixed. Major Asian indices closed mixed. US index futures are trading higher, indicating a positive start to the session as investors await the key labor market report today. The US economy is expected to add 126,000 jobs in May, down from 177,000 in the previous month, while the unemployment rate is likely to remain flat at 4.2%.

  • Relative strength index (RSI) indicates that stocks like Solar Industries, Pfizer, Central Depository Services India, and Bharat Electronics are in the overbought zone.

  • IndusInd Bank rises as RBI officials express confidence that the recent accounting issues will soon stabilise, indicating improved regulatory sentiment towards the lender.

  • Dishman Carbogen Amcis plans to co-invest over CHF 25 million (approx. Rs 260.8 crore) with a long-standing Japanese customer to expand manufacturing capacity at its Aarau and Neuland sites in Switzerland. The investment will help the company produce more drug linkers to meet increasing global demand.

  • Praj Industries rises sharply as it secures an international assignment from Enersur SA to support a biorefinery project in South America. Praj will assist in planning, evaluating, and executing the plant to produce ethanol and co-products.

  • Jairam Sampath, Whole-time Director & CFO of Kaynes Technologies, reiterates the company’s FY28 revenue guidance of $1 billion. He also projects electronics manufacturing services (EMS) revenue of Rs 4,500 crore for FY26, with a 100 bps margin improvement. The company plans a capex of Rs 800 crore for geographic expansion and Rs 400 crore to strengthen its technology capabilities. It also plans a Rs 1,600 crore QIP to support inorganic growth and expand its tech footprint.

  • Oriana Power is rising as it receives an order worth Rs 98.6 crore for the engineering, procurement, construction, and commissioning of a 20 MW ground-mounted solar photovoltaic project in Banka, Bihar. The contract also includes operation and maintenance services for three years.

  • Rama Steel Tubes rises sharply as it forms a joint venture with Onix IPP to develop a 225 MW solar power project under the PM-KUSUM scheme. The project spans multiple locations in Maharashtra and has 25-year power purchase agreements with Maharashtra State Electricity Distribution (MSEDCL).

  • Tata Investment Corp rises sharply after reports indicate Tata Capital may soon get SEBI’s nod for its Rs 17,200 crore initial public offering (IPO), boosting sentiment around group-linked financial entities.

  • According to data from the Federation of Automobile Dealers Associations (FADA), retail sales of passenger vehicles (PV) decline 3.1% in May to 3,02,214 units, down from 3,11,908 units last year. The association notes that supply chain challenges due to rare-earth mineral shortages in EV components and ongoing geopolitical tensions may dampen urban consumer sentiment.

  • JSW Energy rises as it commissions 281?MW of renewable energy capacity, taking its total installed capacity to 12,499?MW. Additionally, the company's subsidiary, JSW Renew Energy Three, signs a 25-year power purchase agreement (PPA) with Adani Electricity for a 250?MW wind project at a tariff of Rs 3.65/kWh.

  • Muthoot Finance is rising as the Reserve Bank of India (RBI) revises the loan-to-value (LTV) ratio on small gold loans up to Rs 2.5 lakh to 85% from 75%, including the interest component. LTV is the percentage of a loan amount compared to the value of the collateral.

  • Canara Bank's board of directors schedules a meeting on June 12 to consider the capital raising plan for FY26.

  • RBI keeps the FY26 GDP growth forecast unchanged at 6.5% but lowers the CPI inflation forecast to 3.7% from the earlier estimate of 4%. Governor Sanjay Malhotra says an above-normal monsoon bodes well for kharif crops. He adds that India remains an attractive investment destination and highlights that the country's forex reserves are sufficient to cover 11 months of imports.

  • Imagicaaworld Entertainment signs a Rs 275 crore loan deal with HDFC Bank to fund the acquisition of Wet’n Joy parks in Lonavala and Shirdi, including the Shirdi-based Saiteerth Devotional Theme Park.

  • Bharat Electronics receives orders worth Rs 2,323 crore from Mazagon Dock Shipbuilders (MDL) and Garden Reach Shipbuilders & Engineers (GRSE) to supply base and depot spares for missile systems on Indian Naval ships.

  • City Union Bank is rising as its board of directors schedules a meeting on June 11 to consider and approve raising funds through the issue of one or more instruments/ securities.

  • The RBI’s Monetary Policy Committee (MPC) slashes the Cash Reserve Ratio (CRR) from 4% to 3%, which is expected to inject Rs 2.5 lakh crore in liquidity and lower funding costs for banks. The central bank shifts its policy stance to ‘Neutral.’ RBI Governor Sanjay Malhotra notes that global growth and trade projections are revised downward as the growth-inflation trade-off becomes increasingly challenging.

  • Indian Renewable Energy Development Agency's board of directors approves raising funds worth up to Rs 5,000 crore through a qualified institutional placement (QIP) of equity shares at a floor price of Rs 173.8.

  • CLSA maintains its 'Outperform' call on Bajaj Auto with a target price of Rs 10,149 per share. The brokerage expects 15–20% export growth in FY26, driven by strong demand from Latin America and Africa. The company also plans to launch a new Chetak electric scooter to strengthen its share in the electric two-wheeler (e2W) market.

  • Azad Engineering falls as 48 lakh shares (7.4% stake) worth approximately Rs 780 crore reportedly change hands in a block deal at an average price of Rs 1,640 per share.

  • The Reserve Bank of India(RBI) cuts repo rate for the third consecutive time by 50 bps to 5.5%. The central bank shifts its stance to ‘Neutral’ from Accommodative, during the Monetary Policy Committee meeting.

  • Bajaj Finserv's promoters, Bajaj Holdings and Jamnalal Sons, reportedly plan to sell 3.1 crore shares (1.9% stake), worth Rs 5,800 crore, via a block deal at an average price of Rs 1,880 per share.

  • ZF Commercial Vehicle Control Systems rises as 6 lakh shares (3.2% stake), worth Rs 792 crore, reportedly change hands in a block deal at an average price of Rs 13,191 per share. Promoter WABCO is likely the seller in the transaction.

  • Ashoka Buildcon is rising as its subsidiary secures orders worth Rs 1,387.2 crore from the Maharashtra Motor Vehicles Department to design, implement, operate, and maintain an Intelligent Traffic Management System across various circles in the state.

  • The Ministry of Communications, Department of Telecommunications, awards Tejas Networks a Rs 123 crore PLI (Production Linked Incentive) scheme for telecom and networking products.

  • Nifty 50 was trading at 24,750.35 (-0.6, 0%), BSE Sensex was trading at 81,434.24 (-7.8, 0.0%) while the broader Nifty 500 was trading at 22,963.20 (28.7, 0.1%).

  • Market breadth is overwhelmingly positive. Of the 1,993 stocks traded today, 1,445 showed gains, and 492 showed losses.

Riding High:

Largecap and midcap gainers today include IDFC First Bank Ltd. (71.55, 7.1%), ICICI Lombard General Insurance Company Ltd. (2,006.20, 6.9%) and Godrej Properties Ltd. (2,467, 6.7%).

Downers:

Largecap and midcap losers today include Sona BLW Precision Forgings Ltd. (510.15, -3.4%), Bharti Hexacom Ltd. (1,819.20, -3.2%) and Solar Industries India Ltd. (16,523, -2.9%).

Volume Shockers

39 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Godrej Industries Ltd. (1,359.50, 14.2%), Ramkrishna Forgings Ltd. (656.75, 9.4%) and Aditya Birla Real Estate Ltd. (2,355.80, 9.1%).

Top high volume loser on BSE was Capri Global Capital Ltd. (152.04, -1.3%).

Route Mobile Ltd. (1,021.35, 6.0%) was trading at 13.6 times of weekly average. Ujjivan Small Finance Bank Ltd. (47.83, 7.5%) and PNB Housing Finance Ltd. (1,104.90, 3.9%) were trading with volumes 10.0 and 7.4 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

21 stocks made 52 week highs,

Stocks touching their year highs included - Abbott India Ltd. (31,300, -1.3%), Bajaj Holdings & Investment Ltd. (14,251, 5.7%) and Bharat Electronics Ltd. (390.70, -0.7%).

33 stocks climbed above their 200 day SMA including Aditya Birla Real Estate Ltd. (2,355.80, 9.1%) and ICICI Lombard General Insurance Company Ltd. (2,006.20, 6.9%). 8 stocks slipped below their 200 SMA including BLS International Services Ltd. (398.65, -2.5%) and CG Power and Industrial Solutions Ltd. (681.60, -2.1%).

 
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