More Stories

Informist, Monday, Jun. 9, 2025

By Akash Mandal

MUMBAI – The benchmark indices ended higher for the fourth straight session Monday, buoyed by the 100 basis-point rate cut "bonanza" and reduction in cash reserve ratio announced by the Reserve Bank of India Friday. The Nifty 50 closed at its highest level in nearly eight months, and the BSE Sensex closed at its highest level since May 15. Sentiment was positive as investors bought into most sectors in the hopes of a revival in corporate earnings and a boost in consumer demand.

Banking, financial services, and insurance stocks surged again as analysts expect the net interest margins of these companies to rise, though in varying timelines. Non-banking finance companies, which will see a more immediate fall in cost of funds compared to banks, saw the most gains. Capri Global Capital, Five-Star Business Finance, and IIFL Finance ended 8-19% higher. Other non-bank lenders which give loans for homes, automobiles, and gold, also ended higher. Bajaj Finance, Shriram Finance, and Muthoot Finance ended 1-4% higher.

Bank stocks also rose, though not as sharply, with public-sector banks gaining more than those in the private sector. Emkay Global Financial Services expects the "front-loaded" 100 bps cut in policy rate by the RBI to cause near-term pressure on the margins of banks, with the impact being more gradual for public-sector banks due to their higher share of margin cost of lending rate-based loans. Bank of India, Bank of Maharashtra, and Indian Bank all ended 3-4% higher. Both the Nifty Bank and Nifty Financial Services indices notched fresh record highs, surpassing the all-time highs they had made after the RBI's policy outcome Friday.

The Nifty 50 ended at 25103.20 points, up 100.15 points or 0.4%. Banking, financial services, and information technology stocks were the biggest contributors to the rise in the benchmark index. The broader market indices also gained sharply with small- and mid-cap stocks ending 1-2% higher. The BSE Sensex closed at 82445.21, up 256.22 points or 0.3%.

Barring the Nifty Realty and Nifty India Defence, all other sectoral indices ended higher. Information technology stocks ended sharply higher on hopes of a tariff truce between the US and China. Top officials from the governments of the two countries were scheduled to meet in London Monday. Better-than-expected US employment data for May also sooothed concerns regarding an economic slowdown in the country. Oracle Financial Services Software, Mphasis, and Persistent Systems ended 2-4% higher.

Some automobile stocks also gained as analysts expect an uptick in demand for vehicles, especially those in the entry-level segment, after the RBI's rate cut and the income tax rebate announced in the Union Budget for the financial year 2025-26 (Apr-Mar) in February. Hero MotoCorp, Maruti Suzuki India, and Tata Motors ended 1-2% higher. Tata Motors said it aims for a higher market share in commercial vehicles by 2027 amid low demand in the personal vehicles segment.

Food delivery and quick commerce companies Swiggy and Eternal ended 3% and 2% lower, respectively, after media reports said Rapido is set to enter the food delivery market. Rapido is expected to offer a flat commission of INR 25 on orders worth up to INR 400, and INR 50 on orders worth over INR 400, which works out to 8-15%, much lower than the 15-30% commission charged from restaurants by Swiggy and Zomato, the food-delivery platform of Eternal.

Kalpaturu Projects International ended 3% higher, having gained over 7% at its intraday high after it got new orders adding up to INR 37.89 billion. Afcons Infrastructure gained nearly 6% after it said Saturday it had got an order worth INR 7.00 billion from Reliance Industries to construct vinyl projects in Dahej, Gujarat. The stock ended 3% higher.

* Of the Nifty 50 stocks, 39 rose and 11 fell 

* Of the Sensex stocks, 22 rose and 8 fell

* On the NSE, 2,066 stocks rose, 904 fell, and 85 were unchanged

* On the BSE, 2,798 stocks rose, 1,409 fell, and 128 were unchanged

* Nifty PSU Bank: up 1.5%; Nifty Oil & Gas: up 1%; Nifty India Defence: down 0.2%

BSE                                               NSE

Sensex: 82445.21, up 256.22 points or 0.3%        Nifty 50: 25103.20, up 100.15 points or 0.4%

End

Edited by Rajeev Pai

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.