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• Equity benchmark Nifty closed at an eight-month high above the 25,100 mark, driven by strong gains in banking, pharma, IT, and oil & gas sectors. The rally followed a slew of positive developments, including the RBI’s unexpected monetary easing, stronger-than-expected U.S. job data, optimism around a potential U.S.-China trade deal, and signs of progress in U.S.-India trade negotiations.

• The market witnessed broad-based buying, particularly in mid-cap financials, after the Reserve Bank of India surprised with a 50 basis point rate cut and a 100 basis point reduction in the Cash Reserve Ratio (CRR). Sentiment was further boosted by upbeat U.S. non-farm payroll figures and renewed optimism over U.S.-China trade talks, which resumed today.

• The Nifty 500’s advance-decline ratio stood at 3:1, indicating robust momentum in mid- and small-cap stocks. The Nifty Midcap and Smallcap indices each rose over 1%. Nifty gained 100 points or 0.4% to close at 25,103, while the Sensex climbed 256 points or 0.4% to end at 82,445.

• Nifty Bank hit a new all-time high, crossing the 57,000 level for the first time. The IT sector also advanced, with the Nifty IT index up 1%, supported by strong U.S. job numbers. The Nifty PSU Bank index rose 1.5% as major state-run banks — PNB, Bank of Baroda, Indian Bank, and Bank of India — lowered home loan interest rates. Stocks of BOI, SBI, Bank of Maharashtra, and Indian Bank gained between 2-4%.

• Gold loan finance companies like Muthoot Finance, IIFL Finance, and Manappuram Finance surged 4-8% after the RBI raised the loan-to-value (LTV) ratio for gold loans under Rs 2.5 lakh from 75% to 85%, boosting investor sentiment.

• Globally, Asian markets rose up to 1.5%, while European markets remained flat, as investors awaited the outcome of renewed U.S.-China trade discussions and took comfort in the strong U.S. employment data.

Technical Outlook

• Nifty Index opened with a strong gap-up of over 150 points at 25160, marking the day’s high at the open itself. Following the open, the index traded sideways within a very narrow range of just 40–50 points throughout the session. The good thing is that Nifty managed to stay above the 25000 level which is an important support.

• It formed a small bodied bearish candle on daily chart but continuing its sequence of higher high - higher lows for the last four sessions which shows supports are shifting higher. Now it has to hold above 25000 zones for an up move towards 25200 then 25400 levels while supports are shifting higher at 25000 then 24850 zones.

Derivative Outlook:

• Nifty future closed positive with gains of 0.35% at 25185 levels. Positive setup seen in IIFL Finance, Bandhan Bank, MCX, MGL, Manappuram Finance, RBL Bank, IREDA, Laurus Labs, Bank Of India, OFSS, Muthoot Finance and Hindustan Zinc while weakness in Kalyan Jewellers, APL Apollo, Kaynes Technology, ICICI Bank, Mazagon Dock, Concor, ABFRL, Lupin and UPL.

• On option front, Maximum Call OI is at 25500 then 26000 strike while Maximum Put OI is at 25000 then 24800 strike. Call writing is seen at 25100 then 25200 strike while Put writing is seen at 25100 then 24400 strike. Option data suggests a broader trading range in between 24600 to 25600 zones while an immediate range between 24900 to 25300 levels.

• Tata Steel - Tata Seel UK’s export to the United States could be significantly impaired, with its £150 million annual trade facing disruption due to technicalities in the UK-US steel trade agreement.

• Indo Borax & Chemicals - Company plans to launch a new product, Boron Oxidey, using its existing product boric acid as raw material. The company is setting up a manufacturing facility at Indore in MP with a proposed investment of Rs20cr to produce Boron Oxide used in refractories with capacity of 4,000 M.T. per annum, and its full capacity is expected to be achieved phase-wise within a year.

• Olectra Greentech - Company’ s chairman and MD KV Pradeep resigns.

• L&T Finance - Company has successfully completed the acquisition of Paul Merchants Finance's gold loan business. This strategic move to marking a significant expansion in L&T Finance's portfolio.

• Kalpataru Power - Company received construction orders worth Rs 3,789 crore in buildings and factories segment.

• JSW Steel Ltd. - Company recorded consolidated steel production of 22.73 lakh tonnes in May 2025, which is higher by 8% as compared with production volume of 20.98 lakh tonnes reported in May 2024.

• Glenmark Pharma - Company will launch DCGI-approved Brunkinsa in India. Brunkinsa is used for advance treatment of Hematological Malignancies.

• Valor Estate and Prestige Estate - Valor Estate has announced its involvement in a significant slum redevelopment project in collaboration with Prestige Estates Projects. This initiative, known as the Worli Urban Development Project, aims to transform the area and improve living conditions for its residents. Valor Estate holds a 50% economic interest in this projects.

Global Market Update

• European Market - European stocks were muted as investors awaited the US and China trade negotiations in London following a phone call between leaders Donald Trump and Xi Jinping last week. UK, Germany and France Index are trading flat to negative.

• Asian Market - Asian stocks rallied Monday on hopes that a fresh round of China-US trade talks later in the day will ease tensions between the economic superpowers, while investors were also cheered by forecast-topping US jobs data. Japan, China, Taiwan and South Korea Index gained up to 1.5%.

• US Data - Wholesale Inventories.

• Commodity - Oil steadied after a weekly surge as a renewed round of US-China trade talks offered the potential for reduced global tensions. Brent traded above $66 a barrel.

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