Stock Market Today: Sensex Gains 4th Day After RBI Rate Cut

On June 9, 2025, the BSE Sensex and NSE Nifty extended gains for a fourth consecutive day—driven primarily by the Reserve Bank of India’s (RBI) surprise 50 bps rate cut and global market optimism. Sensex rose by over 250 points, while Nifty closed above the 25,100 mark.

RBI’s “Bazooka” Step

• Details of the policy: A 50 bps repo rate reduction to 5.50%, alongside a 100 bps CRR cut totalling ₹2.5 trillion in liquidity.
• Policy stance: Shift from “accommodative” to “neutral”—a signal that further cuts aren’t off the table.
• Macroeconomic backdrop: With inflation easing to ~3.16% and Q1 FY26 GDP at 7.4%, RBI now balances growth and stability.

Market Reactions

A. Benchmark Indices

• Sensex rose ~250 pts; Nifty rose past 25,100, marking an 8-month high.
• U.S. jobs data and easing global trade tensions further supported sentiment.

B. Sectoral Performance

• Banking & Financials: Axis (+2.06%), SBI (+0.86%), others also saw strong buys.
• NBFCs: Bajaj Finance up nearly 10% over 2 days, outperforming › banks due to lending advantages.
• Other sectors: Real estate, autos, metals, IT, pharma also gained momentum.

C. Liquidity & Bond Markets

• 5-year yield dropped to ~5.815%, 10-year stayed near 6.237% .
• Rupee strengthened to ~85.6250/$ .

Analyst Insights

• Mayuresh Joshi (Marketsmith) sees strong earnings support across financials and discretionary sectors.
• Citi predicts further rupee appreciation and bolstered FPI flows.https://www.thehindubusinessline.com/
• Tech and pharma poised for extended growth with global tailwinds .

Comparison with Past RBI Moves

• A rare, aggressive jumbo cut last seen in March 2020; compares to earlier 25 bps or CRR-only cuts.
• Past patterns show volatility immediately post-cut—this time markets rallied consistently .

Investor Strategies & Implications

• Analysts recommend “buy-on-dips” particularly in rate-sensitive sectors.
• Increased liquidity favors bond-income plays and balanced portfolios.
• Crucial for investors to track lending transmission to borrowers.

Risks & Challenges Ahead

• Policy stance change may limit further cuts.
• Global uncertainties: U.S.–China tensions, U.S. jobs data .
• RBI’s cue to banks to transmit cuts remains key for real economy impact .

Macro Outlook

• RBI projects FY26 GDP at 6.5%. Sees balanced growth environment.
• Inflation forecasts lowered to ~4%, reinforcing policy flexibility.

Global Market Tie-ins

• Asian peers rallied (~0.7% gain in MSCI Asia ex-Japan).
• U.S. job data boosted risk appetite globally .

Investor Voices (Reddit)

“Despite the rate cut being already priced in… PSU banks and FMCG were hit”.
“The 25 bps CRR cut injecting ₹1.16 lakh crore… market remained subdue due to growth concerns”.
These reflect a cautious, opinion-divided investor community.

Potential Next Moves & Triggers

• RBI might cut an additional ~25 bps by Oct 2025.
• FPO activity, global trade policy developments, and domestic fiscal updates will guide equity flows.

Outlook: What’s Next?

• Market momentum expected to persist if RBI transmits cuts and global sentiment holds.
• Stress testing for overheating and valuation risk essential given swift rally.

Conclusion

Monday’s rally points to a structurally improved growth-supportive environment. Yet, vigilance is needed on liquidity transmission, central bank guidance, and global headwinds.