Indian Markets Rally on RBI Liquidity Boost and Global Tailwinds – Nifty Crosses 25,100

Market Overview

On June 9, 2025, the Indian stock market witnessed a notable rally, with benchmark indices extending gains for the fourth consecutive day. The Nifty 50 closed at 25,100, while the Sensex rose by 256 points, reflecting a 0.40% increase. This upward momentum was primarily driven by aggressive monetary policy measures from the Reserve Bank of India (RBI), robust U.S. job data, and positive developments in U.S.-India trade negotiations .moneycontrol.com reuters.com

The RBI’s decision to implement a 50 basis point repo rate cut and a 100 basis point reduction in the cash reserve ratio injected liquidity into the system, boosting investor sentiment . Additionally, strong U.S. job data and progress in U.S.-India trade talks provided further optimism, particularly benefiting sectors like IT and pharmaceuticals.reuters.com

Sectoral Performance

Financials: State-owned banks led the rally, benefiting from the RBI’s policy measures.
Information Technology (IT): IT stocks gained 1.1%, driven by positive global cues.m.economictimes.com+3reuters.com+3bajajbroking.in+3
Gold Loan Companies: Stocks like Manappuram Finance and Muthoot Finance saw gains following RBI’s relaxation of gold loan regulations.reuters.com
Infrastructure: Kalpataru Projects surged 4% due to substantial new orders .valueresearchonline.com+6reuters.com+6economictimes.indiatimes.com+6

Global Influences

Global markets exhibited a positive trend, with the MSCI Asia ex-Japan index rising 0.7%, mirroring Wall Street’s gains. This global optimism, coupled with favorable domestic policies, contributed to the bullish sentiment in Indian equities.reuters.com+1bajajbroking.in+1

Technical Outlook

The Nifty 50’s 20-day Simple Moving Average (SMA) around 24,800 will act as a crucial support level. A sustained move above this level could confirm a bullish trend, with potential targets at 25,300 and 25,500. Conversely, a breach below 24,800 might indicate a consolidation phase .livemint.com

Tips for Tomorrow’s Market (June 10, 2025):

Monitor Global Cues: Keep an eye on U.S. market movements and economic data releases, as they can influence investor sentiment in India.
Sector Rotation: Consider diversifying investments across sectors that are likely to benefit from current economic policies and global trends.
Risk Management: Implement stop-loss orders to protect against potential market volatility.ithy.com
Stay Informed: Regularly review RBI announcements and global economic indicators to make informed investment decisions.

Financial Sector

Financial stocks led the market rally, benefiting from the RBI’s decision to implement a 50 basis point repo rate cut and a 100 basis point reduction in the cash reserve ratio, which injected liquidity into the system. Notable performers included:

HDFC Bank: Gained 1.2%, supported by the RBI’s policy measures.
ICICI Bank: Rose 1.1%, reflecting positive investor sentiment.timesofindia.indiatimes.com
BSE Limited: Shares surged 2.84% amid high trading volumes, closing at ₹3,016.50 .tradingview.com

Information Technology (IT) Sector

The IT sector experienced significant gains, with the Nifty IT index closing at 39,023, up 4.51%, crossing the 39,000 mark for the first time since January 2022. This also marked the biggest intraday rally for the index since December 2023, coming close to its record high of 39,446 .livemint.com

Key contributors included:

Tata Consultancy Services (TCS): Shares rose 1.1%, closing at ₹3,421, among the top gainers on the Nifty 50 in today’s session .marketwatch.com+2moneycontrol.com+2tradingview.com+2
Infosys: Gained 3.2%, reflecting strong investor confidence.
Coforge: Jumped 7.4%, leading the index.
Mphasis: Increased by 4.2%, contributing to the sector’s performance.

Automobile Sector

The automobile sector saw a major boost, with Hyundai Motor India (HMIL) shares reaching an all-time high amid wider advances for the Nifty Auto index. This surge was attributed to strong sales performance and the RBI’s liquidity push .groww.in

Infrastructure & Construction

Infrastructure stocks remained in focus, with companies like Kalpataru Projects and Larsen & Toubro (L&T) benefiting from increased government spending on infrastructure development.

Market Outlook for June 10, 2025

Given the current market momentum, investors should monitor the following:tradingview.com+2reddit.com+2reddit.com+2

Global Cues: Keep an eye on U.S. market movements and economic data releases, as they can influence investor sentiment in India.
Sector Rotation: Consider diversifying investments across sectors that are likely to benefit from current economic policies and global trends.
Risk Management: Implement stop-loss orders to protect against potential market volatility.
Stay Informed: Regularly review RBI announcements and global economic indicators to make informed investment decisions.