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Below the Quote on Market Wrap Up 06 June 2025 by Mr. Ajit Mishra - SVP, Research, Religare Broking Ltd

"Markets ended the week on a firm note, gaining nearly a percent, supported by favorable domestic cues. The tone was initially cautious ahead of the outcome of the MPC’s monetary policy review, but sentiment turned sharply positive following the surprise announcement of a 50-basis points repo rate cut and a staggered 100 basis points reduction in the CRR. This triggered a strong upward move, followed by a range-bound phase for the remainder of the session. Eventually, the Nifty index settled near the day’s high at 25,003.05.

All key sectors contributed to the rally, with rate-sensitive segments such as realty, financials, and auto emerging as top gainers, closely followed by others. The broader indices also extended their winning streak, rising between 0.8% and 1.2%.

Although the Nifty remains in a consolidation phase, the buoyancy in rate-sensitive sectors—particularly the breakout seen in the banking index—has renewed hopes of a trend resumption. A decisive breakout above the 25,200 mark in the Nifty could trigger the next leg of the rally, potentially pushing the index toward the 25,600 level.

Going forward, the impact of the rate cut is expected to continue influencing market sentiment. Rate-sensitive pack, along with select themes like railways, are likely to stay in focus, while other sectors may contribute on a rotational basis. We continue to recommend a “buy on dips” strategy with an emphasis on selective stock picking."

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