Indian equities ended on Friday with stellar gains after the Reserve Bank of India surprised markets with a double policy boost—a 50 basis point cut in the repo rate and a 100 basis point reduction in the cash reserve ratio (CRR). The moves, aimed at reviving credit demand and supporting domestic growth, sparked a broad-based rally across sectors.
The unexpected easing came at a time when Indian equities had been losing steam, with the Nifty declining over the previous fortnight amid concerns around elevated valuations and global trade uncertainty. Rate-sensitive sectors such as real estate, financials, and automobiles led the charge, while optimism around an above-normal monsoon lifted fast-moving consumer goods stocks.
1. Nifty 50 and Sensex end over 1% higher
The benchmark indices rebounded sharply. The Nifty 50 closed up 252 points, or 1.02%, at 25,003, while the Sensex climbed 443 points, or 1%, to 82,188. This reversed the week’s losses, with the Nifty 50 posting a 1.02% weekly gain and the Sensex 0.91%.
2. Five stocks contribute nearly half of Nifty gains
HDFC Bank led the rally with a 1.5% gain, contributing 48 points to the Nifty 50’s advance. Bajaj Finance added 25.44 points, followed by Axis Bank (23 points), Mahindra & Mahindra (13 points), and Shriram Finance (11 points).
3. Realty index outperforms all sectors
Nifty Realty surged 4.68%, becoming the day’s top sectoral gainer. The 100 basis point CRR cut bolstered hopes of improved homebuyer sentiment, particularly in urban areas. Banking stocks also saw strong gains, with the Nifty Bank hitting a fresh 52-week high of 56,584, ending the session up 1.47%. Nifty Auto, FMCG, Consumer Durables, and Oil & Gas also closed over 0.6% higher.
4. Midcaps shine brighter than largecaps
The Nifty Midcap 100 index rose 1.21%, its best session since May 12, lifting its weekly return to 2.4%. Small-cap stocks also fared well, with the Nifty Smallcap 100 gaining 0.80%.
5. 45 out of 50 Nifty stocks end in the green
Market breadth was strong, with 45 Nifty 50 constituents closing higher. Shriram Finance and Bajaj Finance rose 5.7% and 5%, respectively. Among private banks, Axis Bank, IndusInd Bank, and Kotak Mahindra Bank advanced more than 1.6%. Auto stocks such as Eicher Motors, Hero MotoCorp, Maruti Suzuki, and M&M climbed between 1.6% and 3%.
6. Nearly 120 stocks hit 52-week highs
A total of 119 stocks touched fresh one-year highs, including names such as Abbott India, APL Apollo Tubes, AU Small Finance Bank, Bharat Electronics, HDFC AMC, HDFC Bank, Muthoot Finance, SBI Cards, Solar Industries, and SRF.
7. 36 stocks hit new one-year lows
Meanwhile, 36 stocks touched 52-week lows, including Protean eGov Technologies, Axita Cotton, Naksh Precious Metals, and Uma Exports.
8. Heavy turnover in select stocks
Rama Steel Tubes led the volume charts, with 237 million shares traded across BSE and NSE, closing 4.5% higher at ₹13.79. IDFC First Bank followed, with 133 million shares changing hands. Jaiprakash Power, Ujjivan Small Finance, and KBC Global also witnessed significant trading activity.
9. 95 stocks hit upper circuit limits
According to NSE data, 95 stocks hit their respective upper circuits, with price gains ranging from 2% to 20%. Among these, 8 stocks hit the 20% limit, including TVS Electronics, Dhunseri Tea & Industries, and Wealth First Portfolio Managers.
10. Market sentiment turns optimistic
Today’s strong rally marks a shift in sentiment following two weeks of correction. With the RBI signalling its intent to support growth and liquidity, investors appear more confident heading into the monsoon season and corporate earnings cycle.
(By arrangement with livemint.com)
