The BSE Sensex closed at 82,189, up by 746.95 points, or 0.92%. The Nifty50 closed at 25,003.05, gaining 252.15 points or 1.02%. Investors were clearly buoyed by the RBI’s decision to cut interest rates. The repo rate now stands at 5.50%, down from 6.00%, which provided a shot of optimism across multiple sectors.
In the broader market, the Nifty MidCap and SmallCap indices also saw gains, with the Nifty MidCap rising by 1.28% and the Nifty SmallCap climbing 0.92%. The rally was broad-based, and many investors were optimistic about the future as the central bank’s actions seemed to provide the needed liquidity boost for the economy.
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Impact on the stock market
The news of the rate cut had a significant impact across various sectors. As anticipated, rate-sensitive sectors like real estate, banking, and automobiles were the main beneficiaries.
- Nifty Realty Index surged nearly 5%, which signals the likely revival of the real estate market thanks to the reduction in borrowing costs. This is excellent news for home buyers and real estate developers, who are expected to benefit from cheaper loans.
- Nifty Bank Index rose 1.5%, hitting an all-time high of 56,650. This was a direct reaction to the RBI’s rate cut, which is typically seen as positive for banking stocks. Investors seemed to expect better margins for banks in the future due to lower rates.
- Nifty Auto Index also performed well, climbing 1.4%. This could be a reflection of expectations that lower interest rates will boost vehicle sales, making loans more affordable for consumers.
| Sector/Index | Performance |
| IT & BPM sector | 0.50% |
| Healthcare sector | 0.52% |
| Oil & Gas sector | 0.57% |
| Real estate sector | 4.68% |
| PSU Bank in India | 0.58% |
Top gainers today
| Company | Price (in ₹) | Change % |
| Shriram Finance Share Price | 688.25 | 5.65 |
| Bajaj Finance Share Price | 9,371.50 | 4.90 |
| JSW Steel Share Price | 1,004.90 | 3.73 |
| Axis Bank Share Price | 1,194.60 | 3.07 |
| Maruti Suzuki Share Price | 12,462.00 | 2.77 |
Top losers today
| Company | Price (in ₹) | Change % |
| HDFC Life Share Price | 755.10 | -0.85 |
| Bharat Elec Share Price | 390.70 | -0.71 |
| Bharti Airtel Share Price | 1,870.20 | -0.46 |
| Tata Steel Share Price | 157.49 | -0.30 |
| Sun Pharma Share Price | 1,679.20 | -0.23 |
Market aftermath: Impact on stocks
Hi-Tech Pipes – A 7% surge
Hi-Tech Pipes was one of the standout performers of the day. Shares of the steel pipe manufacturer surged by over 7%, driven by the RBI’s surprise 50 bps rate cut. The rally was further fueled by a “Buy” rating issued by SBI Securities, with the brokerage setting a target price of ₹138 per share. This 44% upside potential caught the attention of investors who saw the company benefiting from both the rate cut and its strong operational performance in FY25.
The company has managed to maintain strong growth in the construction and infrastructure segments, which are expected to see further demand due to the rate cuts. As the construction industry gains momentum, Hi-Tech Pipes stands to benefit significantly from increased infrastructure spending.
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Cochin Shipyard – A 25% gain in 4 Days
Cochin Shipyard shares continued their upward trajectory, gaining another 8% today, adding to a 25% surge over the last four sessions. This rally is largely attributed to increased optimism about India’s defence spending and global defence initiatives. With the Indian government likely increasing its defence budget and the global defence industry ramping up its preparedness, Cochin Shipyard is seen as a key beneficiary.
The company’s solid order book, which currently stands at ₹22,000 crore (more than five times its annual revenue), provides a strong revenue visibility for the medium term. Investors are confident that this PSU shipbuilder will play a significant role in India’s growing defence indigenisation efforts.
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JSW Steel- 4% surge
The rally in metal stocks was another highlight today, with JSW Steel leading the charge. The stock surged by over 4%, reaching ₹1,010. The Nifty Metal index rose by 1.4%, supported by increased hopes of demand growth from the construction and infrastructure sectors. With metal stocks benefiting from the lower interest rates and increased demand, JSW Steel stands to see continued strength in the short-to-medium term.
Alongside JSW, Jindal Stainless also saw significant gains, rising over 3%. Hindustan Zinc, benefiting from higher silver prices, also surged by nearly 2%.
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Crude oil market update
While Indian markets saw optimism, the global crude oil market presented a different picture. Brent crude oil futures were trading at $65.16, down by 0.28%. Similarly, WTI crude futures dropped by 0.30%. This decline in crude prices comes despite ongoing trade talks between the US and China. The uncertainty in the global oil market is being closely watched, as any change in supply or demand dynamics could have significant implications for the global economy.
The decline in oil prices is a relief for Indian consumers, as lower oil prices help ease inflationary pressures. However, geopolitical factors, such as tensions between the US and China and continued instability in Ukraine, could cause volatility in the crude markets in the coming weeks.
Conclusion
Today, the Indian stock market experienced a positive day with a broad-based rally across various sectors. The 50-basis point repo rate cut by the RBI acted as a major catalyst, bringing relief to sectors like real estate, banking, and metals. While the overall market sentiment was positive, specific stocks like Hi-Tech Pipes, Cochin Shipyard, and JSW Steel saw significant gains.
The drop in crude oil prices provided further relief, benefiting consumers, though the global oil market remains volatile due to geopolitical tensions.
As we look ahead, the key factors to watch will be the RBI’s future stance on rate cuts and the continued growth in infrastructure and defence spending. For now, the market is riding high on the expectations of cheaper loans and a strong recovery in demand across various sectors.
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