Indian equity markets ended Friday’s trading session with impressive gains after the Reserve Bank of India (RBI) delivered a double surprise—a 50 basis point cut in the repo rate along with a 100 basis point reduction in the Cash Reserve Ratio (CRR). The moves spurred expectations of stronger credit growth and a boost to domestic economic activity, reigniting bullish sentiment among investors.
The rally came at a critical juncture, as markets had recently been under pressure, with the Nifty 50 retreating over the past two weeks amid valuation concerns and global trade uncertainties. Rate-sensitive sectors led the day’s advance, with financials, real estate, and auto stocks seeing significant buying. Optimism around an expected above-normal monsoon also buoyed the fast-moving consumer goods (FMCG) segment.
Key Highlights from Today’s Market Session:
1. Benchmark Indices Climb Over 1% Each
Both the Nifty 50 and Sensex surged more than 1%, driven by the RBI’s dovish stance. The Nifty 50 closed up 252 points, or 1.02%, at 25,003, while the Sensex rose 443 points, or 1%, to finish at 82,188. The RBI’s actions helped both indices turn positive for the week, with the Nifty 50 gaining 1.02% and the Sensex advancing 0.91%.
2. Investors Add ₹3.6 Lakh Crore in Market Value
A broad-based rally lifted the total market capitalisation of BSE-listed firms to ₹451.1 lakh crore, up from ₹447.5 lakh crore in the prior session—resulting in a one-day wealth increase of ₹3.6 lakh crore for investors.
3. Top Contributors to Nifty 50 Rally
Five stocks accounted for nearly half of the Nifty 50’s gains. HDFC Bank led the pack with a 1.5% jump, contributing 48 points. Bajaj Finance added 25.44 points, followed by Axis Bank (23 points), Mahindra & Mahindra (13 points), and Shriram Finance (11 points).
4. Realty Sector Leads the Charge
The Nifty Realty index was the day’s best-performing sector, soaring 4.68% on expectations that lower borrowing costs would fuel demand for housing. Banking stocks also shone, with the Nifty Bank index hitting a 52-week high of 56,584 and ending 1.47% higher. Other sectoral gainers included Nifty Auto, FMCG, Consumer Durables, and Oil & Gas—all up over 0.60%.
5. Mid-caps Outperform Large-caps
Mid-cap stocks outpaced their large-cap peers, with the Nifty Midcap 100 index climbing 1.21%—its biggest one-day gain since May 12. The index’s weekly return rose to 2.4%. Small-cap stocks also fared well, with the Nifty Smallcap 100 up 0.80%.
6. Broad Market Participation
The rally was broad-based, with 45 out of 50 Nifty constituents closing in positive territory. Shriram Finance and Bajaj Finance were among the top gainers, rising 5.7% and 5%, respectively. Leading private banks such as Axis Bank, IndusInd Bank, and Kotak Mahindra Bank advanced more than 1.6%. Auto majors like Eicher Motors, Hero MotoCorp, Maruti Suzuki, and Mahindra & Mahindra rose between 1.6% and 3%.
7. Nearly 120 Stocks Hit 52-Week Highs
A total of 119 stocks recorded fresh 52-week highs. Prominent names included Abbott India, APL Apollo Tubes, AU Small Finance Bank, Bajaj Holdings & Investment, Bharat Electronics, HDFC Asset Management, HDFC Bank, Muthoot Finance, SBI Cards, Solar Industries India, and SRF.
8. 36 Stocks Hit New Lows
In contrast, 36 stocks touched their 52-week lows. Among them were Protean eGov Technologies, Axita Cotton, Naksh Precious Metals, and Uma Exports.
9. Heavy Trading Volumes in Select Stocks
Rama Steel Tubes topped the volume charts, with 237 million shares traded across NSE and BSE. The stock closed up 4.5% at ₹13.79. IDFC First Bank followed with 133 million shares traded. Other heavily traded stocks included Jaiprakash Power, Ujjivan Small Finance Bank, and KBC Global.
10. Upper Circuit Frenzy
According to NSE data, 95 stocks hit their upper circuit limits during the session, with gains ranging from 2% to 20%. Notable names included TVS Electronics (20% upper circuit), Dhunseri Tea & Industries, and Wealth First Portfolio Managers.
Market Outlook
The RBI’s aggressive rate cuts have injected fresh optimism into the market, particularly among rate-sensitive sectors. Analysts believe that if credit demand picks up as expected and monsoon forecasts hold true, equities could see continued momentum in the near term.
