Nifty 50 Rides Banking Wave To Close 0.4 Percent Higher; Broader Indices Outperform As Markets Cheer Rate Cuts And Global Signals

Image Source : Business Standard

Indian equity markets delivered another day of robust gains, with the Nifty 50 index provisionally ending 0.4 percent higher, closing above the 25,100 mark on Monday, June 9, 2025. The rally was led by banking and financial stocks, while broader indices continued to outpace the benchmarks, reflecting strong investor optimism across market segments.

Market Overview

The Nifty 50 index provisionally settled at 25,098.40, marking a gain of 95.35 points or 0.38 percent. The BSE Sensex also traded firmly in the green, closing at 82,433.35, up by 244.36 points or 0.30 percent. The upward momentum was supported by positive global cues and anticipation surrounding US-China trade talks in London, as well as ongoing confidence from the Reserve Bank of India’s recent policy decisions.

Key Highlights

- Banking sector leads as Nifty Bank index surges to a fresh all-time high of 57,049.50, driven by strong buying in Kotak Mahindra Bank, Bajaj Finance, Axis Bank, IndusInd Bank, and SBI. Bajaj Finance hit a record high after announcing a stock split and bonus share record date for June 16, 2025, with shares rising sharply in heavy volumes.
- Broader markets outshine as Nifty MidCap and SmallCap indices gain 0.95 percent and 1.15 percent respectively. Nifty Next 50 index also posts a solid rise of 0.58 percent for the day.
- Among sectoral indices, PSU Bank, Private Bank, and IT each advance by 1 percent, while Realty lags, closing 0.44 percent lower.
- Stock-specific action includes Hyundai Motor India shares surging to an all-time high, boosted by robust EV sales and new renewable energy investments. PNC Infratech shares jump nearly 5 percent after securing a 240 crore rupee infrastructure order from PWD-Rajasthan.
- IPO activity sees Ganga Bath Fittings IPO allotment finalized, while Sacheerome SME IPO witnesses strong subscription on its opening day.
- Investors remain watchful of monsoon progress and agricultural sowing, which could influence rural spending and overall economic sentiment. The RBI’s recent repo rate cut and CRR reduction continue to underpin market confidence.
- European markets trade mixed, with Euro Stoxx 50 and CAC 40 slightly down, while FTSE 100 and IBEX 35 remain flat as focus shifts to US-China trade talks for further direction.

Market Depth And Technical Insights

- Resistance and support levels for Nifty 50 stand at 25,115 and 24,962 respectively. The index is trading above all major moving averages, signaling a bullish technical setup.
- Bank Nifty index continues to trade at record highs, with immediate resistance at 56,695 and support at 56,453.
- Bond market sees the yield on the 10-year government bond rise to 6.35 percent, its highest since May 13, reflecting shifting investor expectations ahead of new economic data.

Corporate Developments

- Aditya Birla Real Estate’s arm Birla Estates secures a 420 crore rupee investment from International Finance Corporation for two projects.
- Poonawalla Fincorp approves raising up to 500 crore rupees via non-convertible debentures.

Investor Sentiment And Outlook

Market sentiment remains positive, buoyed by the RBI’s accommodative stance and strong inflows into banking and financial stocks. The outperformance of mid- and small-cap indices suggests a broadening of the rally, with investors increasingly confident about India’s growth trajectory. While global uncertainties persist, the domestic narrative remains firmly bullish.

Source: Business Standard, NDTV Profit, Moneycontrol