Nifty trades near 24,800 level; RBI cuts repo rate by 50 bps to 5.50%

The key equity indices pared early losses and traded with minor gains in morning trade after the RBI cut the repo rate by 50 bps to 5.50%, amid favourable domestic environment. Market participants are also closely monitoring bond markets and global trade developments. The Nifty traded near the 24,800 level.

Realty shares witnessed buying demand for the second consecutive trading session.

At 10:25 IST, the barometer index, the S&P BSE Sensex advanced 70.42 points or 0.09% to 81,512.46. The Nifty 50 index added 40.50 points or 0.17% to 24,796.80

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.16% and the S&P BSE Small-Cap index added 0.31%.

The market breadth was strong. On the BSE, 2,122 shares rose and 1,388 shares fell. A total of 205 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, declined 1.47% to 14.86.

RBI Monetary Policy Outcome:

The Reserve Bank of India (RBI) cut the policy repo rate by 50 basis points to 5.50%, signaling a shift in its monetary policy stance from accommodative to neutral.

The decision, announced at the conclusion of the Monetary Policy Committees (MPC) 55th meeting held from June 4 to 6, 2025, was driven by easing inflation and a stable growth outlook.

With the rate cut coming into effect immediately, the standing deposit facility (SDF) rate now stands at 5.25%, while the marginal standing facility (MSF) rate and the Bank Rate are adjusted to 5.75%.

This decision is in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4% within a band of +/- 2%, while supporting growth.

The RBI maintained its real GDP growth projection for FY26 at 6.5%, with quarterly growth seen at 6.5% in Q1, 6.7% in Q2, 6.6% in Q3, and 6.3% in Q4.

On the inflation front, the RBI revised its forecast downward to 3.7% for FY26 from the earlier estimate of 4%. Quarterly projections suggest CPI inflation at 2.9% in Q1, 3.4% in Q2, 3.9% in Q3, and 4.4% in Q4.

The RBI cited broad-based moderation in inflation over the past six months, with headline CPI now well below target. It noted that both food and core inflation are expected to remain soft, helped by easing global commodity prices amid a global growth slowdown.

Looking ahead, the MPC emphasized a data-dependent approach, stating it will closely monitor evolving domestic and global conditions to guide future policy moves.

The minutes of the MPC meeting will be released on June 20, and the next policy meeting is scheduled from August 4 to 6, 2025.

Buzzing Index:

The Nifty Realty index jumped 1.17% to 1,004.70. The index jumped 2.94% for the two trading sessions.

Prestige Estates Projects (up 1.8%), Sobha (up 1.3%), Godrej Properties (up 1.2%), DLF (up 0.78%), Oberoi Realty (up 0.56%), Macrotech Developers (up 0.51%), Phoenix Mills (up 0.5%) and Anant Raj (up 0.18%) advanced.

Stocks in Spotlight:

Medplus Health Services rose 0.35%. The companys subsidiary, Optival Health Solutions has received one suspension order for a drug license for store situated at Maharashtra.

Brigade Enterprises rose 0.05%. The companys wholly owned subsidiary, Brigade Tetrarch has incorporated a limited liability partnership (LLP) named Auraterra Developers LLP, with an initial capital contribution of Rs 99,990. The said LLP will take up development of real estate projects.

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