Market Roars: Nifty Tops 25,100, Sensex Gains for 4th Day on RBI Cheer & Global Cues

Indian equity benchmarks extended their winning streak for the fourth straight session on Monday, June 9, 2025, as investor sentiment remained buoyant following the Reserve Bank of India’s (RBI) recent monetary easing and supportive global cues. The NSE Nifty 50 index successfully breached and closed above the significant 25,100 level, while the BSE Sensex also registered healthy gains, with financial stocks leading the charge.

Markets Continue Upward March

The trading session on Monday commenced on a positive note, reflecting the optimism carried over from the previous week. The Nifty 50 opened strong above 25,160 and, after a day of steady trading, closed at 25,103.20, up by 100.15 points or 0.40% from its previous close. This marked the second consecutive session the index settled above the 25,000 milestone.

Similarly, the BSE Sensex started the day at 82,574 and reached an intraday high of 82,669. It eventually settled at 82,445.21, gaining 256.22 points or 0.31%.

The positive momentum was not confined to the headline indices. Broader markets also participated in the rally, indicating widespread buying interest. The Nifty Midcap 100 index climbed 1.10%, and the Nifty Smallcap 100 index advanced by a more significant 1.60%. However, the India VIX, a measure of market volatility, saw a slight uptick, rising 0.43% to 14.69, suggesting a degree of caution among traders despite the gains.

Catalysts Behind the Rally

Several factors contributed to the sustained bullishness on Dalal Street:

1. RBI’s Dovish Stance: The primary driver for the market’s enthusiasm was the RBI’s monetary policy announcement on Friday, June 6, 2025. The central bank delivered a larger-than-anticipated 50 basis point (bps) cut in the repo rate and a 100 bps reduction in the Cash Reserve Ratio (CRR). This “monetary bazooka,” as some analysts termed it, was aimed at injecting liquidity into the system and stimulating economic growth, which significantly boosted investor confidence, especially in rate-sensitive sectors.

2. Positive Global Cues: Supportive signals from international markets also played a crucial role:

• U.S. Jobs Data: Better-than-expected employment figures from the United States eased concerns about a global economic slowdown and improved sentiment in IT stocks.
• Trade Talk Optimism: Progress in U.S.-India trade negotiations and upcoming U.S.-China trade talks in London fostered a positive outlook for global trade, benefiting metal counters among others.
• Asian Markets: Broader Asian equity markets also traded higher, partly due to easing deflationary concerns in China.

3. Sectoral Strength: Financials were at the forefront of Monday’s rally. The Nifty Bank index was a standout performer, surging to a new all-time high of 57,049.50 during intraday trade. PSU Banks, Private Banks, and NBFCs saw robust buying interest. Other sectors contributing to the gains included IT, Auto, Oil & Gas, and Energy. The expectation that lower interest rates could boost sales of entry-level automobiles, which had seen subdued demand, led to a spike in auto stocks. Conversely, the Nifty Realty index saw some profit-booking and ended lower, snapping its recent gaining streak.

4. FII and DII Activity: On Friday, June 6th, Foreign Institutional Investors (FIIs) were net buyers of Indian equities to the tune of ₹1,010 crore, while Domestic Institutional Investors (DIIs) showed even stronger conviction, with net purchases amounting to ₹9,342 crore. This robust domestic participation has been a key pillar of support for the markets.

Expert Commentary

Market experts largely viewed the current rally positively but also advised a degree of caution.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, “The monetary bazooka fired by the RBI on Friday will keep the market spirits alive in the near-term. But this is not sufficient to sustain the rally triggered on Friday. More important is the trend in earnings growth.” He suggested that FY26 earnings are unlikely to reach mid-teens, which is necessary for the market to remain resilient and move up further, projecting a Nifty range of 24,500-25,500.

Akshay Chinchalkar, Head of Research at Axis Securities, highlighted key technical levels: “Getting past 25,116 is the only thing that bulls need to do from hereon, and a break of 25,260 will open the doors toward 25,800.” He identified resistance for the Nifty at 25,120 and support at 24,820.

Om Mehra, Technical Research Analyst at SAMCO Securities, pointed to Nifty resistance near 25,120 and support in the 24,880–24,900 zone. For Bank Nifty, he cited resistance at 56,900 and support at 56,200.

Implications for Retail Investors

The current market environment, characterized by strong domestic flows and a supportive central bank, presents opportunities. However, the rally has also pushed valuations higher in several segments. Retail investors should:

• Focus on Fundamentals: Invest in companies with strong earnings visibility and sound business models rather than chasing momentum blindly.
• Diversify: Maintain a diversified portfolio across sectors and market capitalizations to mitigate risks.
• Adopt a Staggered Approach: Consider Systematic Investment Plans (SIPs) for long-term wealth creation, especially when markets are at higher levels.
• Stay Informed: Keep abreast of macroeconomic developments, corporate earnings, and global trends that could impact market direction.

What to Watch Next

Looking ahead, several factors will be crucial in determining the market’s trajectory:

• Macroeconomic Data: Upcoming releases of domestic inflation (CPI) and industrial production (IIP) data will be closely watched for cues on the economy’s health and potential future RBI actions.
• Global Cues: The outcome of U.S.-China trade talks, global inflation trends, and actions by other major central banks will continue to influence sentiment.
• Monsoon Progress: The advancement of the monsoon and its impact on agricultural sowing will be important for rural demand and overall economic growth.
• Corporate Earnings: As the next earnings season approaches, company performances and management commentaries will be critical for justifying current valuations.
• Technical Levels: For the Nifty 50, the immediate resistance is around 25,120-25,260. A sustained move above this could open up further upside towards 25,500 and then 25,800. Key support levels are pegged around 24,800-24,900.

The Indian stock market’s current rally is a welcome sign, but investors should navigate it with a blend of optimism and caution, focusing on long-term fundamentals.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before investing.