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Key Points

The Indian stock market continued its winning streak for the fourth consecutive day, with the Sensex jumping 256 points. The Reserve Bank of India's recent rate cut and supportive monetary policy have significantly boosted investor confidence across various sectors. Banking stocks emerged as the top performers, with the Bank Nifty index hitting an all-time high by crossing the 57,000 mark. Positive global economic indicators, including US jobs data, further contributed to the market's optimistic mood.

Key Points: Sensex Rallies 256 Points on RBI Rate Cut Boost

  • RBI cuts repo rate by 50 basis points, boosting market confidence
  • Bank Nifty index breaches 57,000 mark for first time
  • Financial stocks lead market rally
  • Positive US jobs data supports investor sentiment
2 min read

Indian stocks remain in green for fourth day; Sensex jumps 256 points

Indian stocks surge for fourth consecutive day, driven by RBI's aggressive monetary policy and positive global market sentiment

"Banking stocks were the standout performers of the session - Bajaj Broking Research"

Mumbai, June 9

The Indian stock indices ended on a positive note on Monday, rising for the fourth straight session, continuing to take cue from the RBI's decision to cut repo rates by 50 basis points.

The Sensex closed at 82.445.21 per cent, up 256.22 points or 0.31 per cent, while Nifty closed at 25,103.20 points, up 100.15 points or 0.40 per cent.

"Financial stocks extended their rally in Indian markets, driven by the RBI's supportive aggressive policy of rate and CRRA cut. These actions have boosted investor confidence and are expected to enhance liquidity in the near to medium term, especially in midcaps," said Vinod Nair, Head of Research, Geojit Investments Limited.

All the Nifty Sectoral indices ended their day in the green territory except Nifty Realty. Out of all the sectors, Nifty Financial Services Ex-Bank was the top mover, followed by Nifty PSU Bank and Nifty Oil & Gas.

"Banking stocks were the standout performers of the session, with the Bank Nifty index extending its rally to hit a fresh all-time high. For the first time ever, the index breached the 57,000 mark, underscoring the market's optimism following a surprise 50 basis points cut in the repo rate and a simultaneous reduction in the Cash Reserve Ratio (CRR) by the Reserve Bank of India (RBI)," according to Bajaj Broking Research.

According to the latest US jobs data, employers added 1,39,000 jobs last month. Average hourly earnings increased 0.4% in May against a rise of 0.3%, as reported by Reuters.

"The positive US jobs data and renewed optimism over U.S.-China trade talks lifted global sentiment. Domestically even large caps expressed renewed momentum led by FIIs inflows," Vinod Nair added.

On Friday, RBI decided to reduce the policy repo rate under the Liquidity Adjustment Facility by 50 basis points to 5.5 per cent. This rate cut was accompanied by a cut in the Cash Reserve Ratio (CRR) by 100 basis points in four tranches of 25bps each.

- ANI

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Reader Comments

R
Rahul K.
Great to see our markets performing well! RBI's bold moves are clearly boosting investor confidence. But I hope this liquidity reaches small businesses too, not just big players. #MakeInIndia 🇮🇳
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Priya M.
As a small investor, I'm happy but also cautious. The rally seems concentrated in banking and financial stocks. What about other sectors? When will manufacturing and IT see similar growth?
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Sanjay T.
RBI deserves praise for this surprise move! 50bps cut is bold and shows they're serious about growth. But will banks pass on the full benefit to borrowers? That's the real test.
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Ananya R.
Market is celebrating now, but we must watch global factors too. US-China trade tensions and oil prices can change everything overnight. Stay invested but stay alert! 💹
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Vikram J.
Good to see PSU banks performing well finally! But I worry this is temporary. These banks need structural reforms to sustain growth, not just rate cuts.
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Neha P.
As someone who started SIPs last year, this rally is reassuring! But new investors should remember - markets go up and down. Don't panic, stay disciplined with your investments.

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