Weekly Update-06 June 2025

NIFTY50

The index closed the week with a gain of 1.02%, settling at 25,003. The week began on a flat note with limited movement on Monday, followed by notable selling pressure on Tuesday amid global cues. However, the index rebounded strongly from support levels and maintained a steady upward trajectory through the rest of the week. The highlight came on Friday, when the market witnessed a sharp rally following the RBI policy announcement, which included a 50 basis point rate cut—boosting liquidity sentiment across sectors. This positive momentum, supported by broad-based buying, particularly in rate-sensitive sectors, reinforced overall market confidence. For the upcoming week, key resistance is expected near 25,500 and support around 24,500. The preferred strategy remains to adopt a buy-on-dips approach, with focus on strong fundamental stocks.

BANKNIFTY

The index closed the week with a gain of 1.49%, settling at 56,578. The week began on a flat note on Monday with sideways movement, followed by notable selling pressure on Tuesday amid global uncertainties and cautious sentiment. However, from mid-week onwards, the index rebounded strongly from support levels, showing consistent upward momentum. The highlight came on Friday, when a sharp rally was triggered by the RBI policy announcement, which included a 50 basis point rate cut—providing a major boost to the banking and financial sector. This policy-driven optimism supported strong buying interest across sectors. Key resistance for the coming week is seen around 57,000, while support is placed near 55,500. The preferred strategy remains buy on dips.

Best Performing Sector of the week

The Nifty Realty was best performing sector of this week

Major gainers include:-

Sobha: up by 17.21%

Prestige: up by 16.91%

Brigade: up by 16.78%

DLF: up by 10.34%

Important News:-

• The Reserve Bank of India’s (RBI) monetary policy had taken the market by surprise with 3 actions: Repo rate cut of 50 bps, cash reserve ratio (CRR) cut by 100 bps in 4 tranches starting from September 2025, change in stance to “neutral”.

• Broader indices outperform the main indices, with the small-cap index rising 2 percent, extending the gaining streak in the fourth week as investors welcome the RBI's growth support measures with a cut in repo rate by 50 basis points and CRR by 100 basis points.

• Gravita India Ltd shares rallied four percent on Friday, June 6, after reports suggested that the domestic incentive scheme to recycle critical minerals is close to approval.

• The Centre is considering raising the Motor Third Party (TP) insurance premium based on the recommendation of the insurance regulator IRDAI, CNBC-TV18 reported on June 6 citing people familiar with the matter, sending shares of general insurers like ICICI Lombard General, Go Digit General Insurance and New India Assurance Company sharply higher.
  
• Realty shares rallied sharply on Friday, with the Nifty Realty index topping sectoral charts after the Reserve Bank of India (RBI) delivered a larger-than-expected interest rate cut of 50 basis points and also lowered the cash reserve ratio to infuse additional liquidity into the banking system.