Indian stock markets soared on June 6, 2025, with the Sensex jumping 746 points to close at 77,890 and the Nifty 50 crossing the psychological 25,000 mark. The rally came in direct response to the Reserve Bank of India’s decision to cut the repo rate by 50 basis points and reduce the CRR by 100 basis points. Banking, real estate, and auto sectors led the charge, with top gainers including HDFC Bank, ICICI Bank, Axis Bank, and Tata Motors. Analysts called this move a “bullish breakout,” especially since it came on high volumes and strong institutional participation. Foreign Institutional Investors (FIIs) poured in over ₹3,000 crore during the trading session, further fueling market momentum. Domestic institutions followed suit, sensing an improved outlook for economic growth and corporate earnings. The rally is being interpreted not just as a short-term spike, but as a potential signal of a sustained uptrend driven by improved macroeconomic fundamentals. Technical indicators now show the Nifty has formed a strong base near 24,700, making the 25,500 zone a realistic target in the near future. The rally also saw improved investor interest in midcaps and smallcaps, indicating wider market participation. Many brokerages have revised their year-end Sensex targets upward, expecting policy-driven gains and continued FII interest. The RBI’s easing, coupled with stable inflation and a pickup in private investments, has turned investor sentiment decisively bullish. As India remains one of the fastest-growing economies globally, the market outlook remains highly optimistic.
