India’s Moment Amid Global Turmoil 📈

Market Performance

Markets had a spring in their step this past week. The Nifty climbed 1% (up 252 points) and the Sensex followed suit, rising by 737 points.

The cheer was courtesy of a surprise 50 basis point repo rate cut by the RBI—double the 25 bps the street had priced in. That unexpected pivot towards growth lit a fire under the benchmarks and sent broader indices marching higher.

Even the long-stuck Bank Nifty finally broke out of its 30-day range. Meanwhile, midcaps and smallcaps, already leading the charge, kept up their strong run.

Here's how the major indices fared:

Index	May 30, 2025	June 06, 2025	% Change
Nifty	24,750.7	25,003.0	1.02
Bank Nifty	55,749.7	56,578.4	1.49
Midcap Nifty	57,420.0	59,010.3	2.77

Sector Performance

Most sectors ended the week in the green, with Realty (up 9.5%) and Capital Markets (up 9%) leading the charge, buoyed by the surprise rate cut.

Real estate stocks had already started moving before the announcement and gained further momentum post-policy.

Metal (+2.3%) and PSU Banks (+1.8%) were the next best performers, while Auto, Pharma, and Financial Services posted modest gains.

IT (-0.07%) and Media (-0.32%) were the only laggards.

Indices	Weekly Change (%)
Nifty Realty	9.51
Nifty Select Midcap	3.41
Nifty Metal	2.32
Nifty PSU Bank	1.78
Nifty Bank	1.49
Nifty Auto	1.44
Nifty Financial Services	1.32
Nifty Pharma	1.13
Nifty FMCG	0.94
Nifty Energy	0.13
Nifty IT	-0.07
Nifty Media	-0.32

Weekly Top Gainers (Nifty 500)

Company	Weekly Gain (%)
Cochin Shipyard	23.10
Astrazeneca Pharma	22.80
First Cry	19.57
FACT	17.49
Sobha Developers	17.21

Weekly Top Losers (Nifty 500)

Company	Weekly Loss (%)
MMTC	-12.31
Niva Bupa Health	-9.62
Aditya Birla Fashion	-9.41
Aptus Value Housing Fin.	-6.73
Suzlon	-6.67

Cochin Shipyard stole the show this week with a 23% rally, powered by strong earnings and defence orders. Sobha Developers also rode the rate-cut wave, as real estate stocks surged after the big rate cut.

On the flip side, block deals dragged down names like Niva Bupa and Aditya Birla Fashion, while MMTC and Suzlon saw some profit booking after recent gains.

Liquidity Conditions

Despite persistent selling from FIIs totalling Rs. 3,565 crore during the week, Indian markets held firm—thanks to strong DII support with inflows of Rs. 25,603 crore.

The surprise rate cut and CRR tweak by the RBI acted as a tailwind, triggering aggressive buying, especially from domestic institutions.

On the global front, FPI flows remained mixed across emerging markets—while countries like South Korea and Vietnam saw inflows.

On the other hand, India continued to see outflows (USD 445 million), reflecting cautious sentiment amid macro uncertainties.

India Equity - Institutional Funds Flow (in Rs. crore)

Date	FII	DII
June 02, 2025	-2,589	5,314
June 03, 2025	-2,854	5,908
June 04, 2025	1,076	2,567
June 05, 2025	-208	2,382
June 06, 2025	1,010	9,432
Total	3,565	25,603

Rate Cut Bolsters Market Sentiment

The RBI’s jumbo 50 bps rate cut, paired with an unexpected 100 bps CRR reduction, is a major boost for markets. This move will inject around Rs 2.5 lakh crore liquidity by November, supporting bank margins in 2HFY26 and sustaining growth momentum while encouraging private investment.

Despite external challenges such as US tariffs, global trade tensions, and geopolitical risks, the growth-inflation outlook justifies this monetary easing.

The rate cut should help Nifty break past the 25,000 mark and revive market momentum.

Global Snapshot

Global equities ended mixed to negative amid weak US jobs data, rising bond yields, and geopolitical concerns. While India and Brazil posted gains, some Southeast Asian markets slipped.

US indices closed marginally lower: S&P 500 (-0.53%), Dow Jones (-0.25%), Nasdaq (-0.80%). European markets dipped slightly, with FTSE 100 (-0.01%) and DAX (-0.17%). In Asia, Hang Seng fell 0.63%, Shanghai inched up 0.04%, and Kospi rose 1.49%.

Other Asset Class

Gold prices held steady near Rs 96,786. The rupee remained stable at 85.71/USD, aided by RBI intervention. Brent crude rebounded 2.1% to USD 67.02 per barrel after three weeks of decline. The 10-year G-Sec yield closed at 6.21%.

Technical Perspective

Nifty and Sensex bounced sharply after holding support near 24,500/80,600. A double bottom and weekly bullish candle suggest more upside.

The 20-day SMA at 24,800/81,600 is the key level—staying above it supports gains toward 25,100/82,600 and possibly 25,400–25,500/83,500–83,900. Falling below 24,800/81,600 risks a retest of 24,500/80,600 or lower.

Bank Nifty’s breakout points to further gains, with support at 56,000 and 55,500. Above these, it may target 57,200–57,700; below 55,500, the uptrend could falter.

India’s Moment Amid Global Turmoil

Amid global challenges, India shines bright. Easing inflation, potential rate cuts, and disciplined fiscal management set the stage for a solid GDP rebound.

Key strengths like a young population and resilient domestic demand position India as a clear winner in the shifting global landscape.

Markets have already climbed beyond pre-trade war levels, signalling renewed investor confidence.

Some profit booking may occur, but a daily close above 25,050 is crucial to push towards all-time highs.

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