The key equity indices posted significant gains this week, driven by the Reserve Bank of India's surprise 50 basis points rate cut and a shift in its monetary policy stance from accommodative to neutral. The easing inflation outlook and strong Q4 FY25 GDP growth of 7.4% boosted investor confidence, signaling a stable and supportive economic environment. Broader markets outperformed, reflecting renewed optimism around domestic demand and lower borrowing costs. Despite global headwinds and geopolitical concerns, sentiment remained upbeat as macroeconomic indicators pointed toward a healthy growth-inflation balance.
In the week ended on Friday, 6 June 2025, the S&P BSE Sensex surged 737.98 points or 0.90% to settle at 82,188.99. The Nifty 50 index jumped 252.35 points or 1.01% to settle at 25,003.05. The BSE Mid-Cap index rallied 2.12% to close at 46,096.51. The BSE Small-Cap soared 1.95% to end at 53,440.26.
Weekly Index Movement:
The key equity benchmarks ended marginally lower on Monday as global trade jitters resurfaced after U.S. President Donald Trump hinted at hiking tariffs on imported steel and aluminium to 50%, effective June 4. The S&P BSE Sensex declined 77.26 points or 0.09% to 81,373.75. The Nifty 50 index fell 34.10 points or 0.14% to 24,716.60.
The headline equity benchmarks ended deep in the red on Tuesday, marking their third consecutive day of losses. The S&P BSE Sensex advanced 294.85 points or 0.37% to 80,796.84. The S&P BSE Sensex declined 636.24 points or 0.78% to 80,737.51. The Nifty 50 index dropped 174.10 points or 0.70% to 24,542.50.
The benchmark indices snapped a three-day losing streak and closed higher on Wednesday, supported by broad-based buying across sectors. The S&P BSE Sensex advanced 260.74 points or 0.32% to 80,998.25. The Nifty 50 index added 77.70 points or 0.32% to 24,620.20.
The domestic equity indices closed with strong gains on Thursday, extending their rally for a second straight session. The uptrend was driven by positive global cues and the return of foreign fund inflows after recent outflows. The S&P BSE Sensex advanced 443.79 points or 0.55% to 81,442.04. The Nifty 50 index jumped 130.70 points or 0.53% to 24,750.90.
The key domestic benchmarks ended with major gains on Friday, extending their rally for the third straight session in a row, after the RBI cut the repo rate by 50 bps to 5.50%, amid a favorable domestic environment. The S&P BSE Sensex, surged 746.95 points or 0.92% to 82,188.99. The Nifty 50 index jumped 252.15 points or 1.02% to 25,003.05.
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 Committee’s (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.
Economy:
India's GDP growth touched a four-quarter high of 7.4% in Q4 FY25, with full-year growth ending at 6.5%, according to data released by the government post-market hours Friday. The GDP growth, higher than the previous quarter's 6.4%, was lower than the 8.4% growth logged in Q4 FY24.
Meanwhile, India’s fiscal deficit for FY25 stood at 4.8% of GDP, meeting the revised estimate, according to data released by the Comptroller General of Accounts on Friday. The central government’s fiscal deficit stood at Rs 15.77 lakh crore, or 100.5% of the revised annual target, compared with 95.4% a year before.
Further, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) declined to 57.6 in May 2025, down from 58.2 in April 2025, highlighting the weakest improvement in operating conditions since February. The headline figure was nevertheless well above both the neutral mark of 50.0 and its long-run average of 54.1.
Panelists suggested that demand strength continued to support sales and production, though competition, inflation, and the India-Pakistan conflict had reportedly weighed on growth.
The seasonally adjusted HSBC India Services PMI Business Activity Index rose to 58.8 in May from 58.7 in April 2025. Growth was reportedly underpinned by healthy demand conditions, new client wins, and greater staffing capacity.
The HSBC India Composite PMI Output Index came in at 59.3 in May, down only marginally from 59.7 in April. The downward movement in the headline index reflected softer growth of factory production, as services activity rose at a quicker pace.
Monthly Auto Sales:
Tata Motors fell 1.07%. The company's total sales stood at 70,187 units in May 2025, registering a decrease of 8.57% compared with 76,766 units in May 2024.
Bajaj Auto rose 0.33%. The company has recorded total sales of 3,84,621 units in May 2025, which is higher by 8.25% compared with the sales volume of 3,55,323 units sold in May 2024.
Hero MotoCorp shed 0.83%. The company said that it has dispatched 507,701 units of motorcycles and scooters during May 2025, which is higher 1.92% as compared with the dispatch figure of 498,123 units recorded in May 2024.
Mahindra & Mahindra added 4.25%. The company’s overall auto sales grew by 17.33% to 84,110 vehicles sold in May 2025 as against 71,682 vehicles sold in May 2024.
SML Isuzu rose 0.94%. The company said that it sold 1,543 units in May 2025, registering a de-growth of 1.3% from 1,563 units sold in the same period last year.
Hyundai Motor India (HMIL) rose 0.56%. The company reported total sales of 58,701 units in May 2025, marking a marginal increase of 1% from 58,502 units sold in May 2024, including 43,861 units sold in the domestic market and 14,840 units exported.
Eicher Motors added 1.18%. The company has reported 26% jump in total motorcycle sales to 89,429 units in May 2025 from 71,010 units in May 2024.
Atul Auto fell 1.02%. The company reported 7.34% increase in total sales to 2,502 units in May 2025 as against 2,331 units sold in May 2024.
Ashok Leyland rallied 2.60%. The company reported a 5% rise in total commercial vehicle sales to 15,484 units in May 2025 from 14,682 units sold in May 2024.
TVS Motor Company shed 1.24%. The company has registered sales of 431,275 units in May 2025, which is higher by 17% as compared with the 369,914 units sold in May 2024.
Escorts Kubota shed 0.68%. The tractor manufacturer announced that its agri-machinery business division recorded a marginal 0.7% year-on-year increase in sales to 10,354 units in May 2025, compared to 10,286 units sold in May 2024.
Force Motors declined 1.02%. The company’s domestic sales jumped 24.46% to 3,002 units in May 2025, as against 2,412 units sold in May 2024.
Stocks in Spotlight:
Angel One zoomed 6.13%. The firm announced that its client base jumped 34.1% to 31.95 million in May 2025, compared with 23.83 million in May 2024.
AstraZeneca Pharma surged 22.53%. The company's standalone net profit rose 47.54% to Rs 58.25 crore, while revenue from operations rose 25.39% to Rs 480.48 crore in Q4 March 2025 over Q4 March 2024.
Larsen & Toubro (L&T) fell 0.70%. The company announced that its water & effluent treatment (WET) vertical has secured significant orders from the Public Health Engineering Department of Rajasthan. The value of the contract ranges from Rs 1,000 crore to Rs 2,500 crore.
Servotech Renewable Power System gained 26.86%. The company secured a prestigious work order from the Rangiya Division of the Northeast Frontier Railway for a 7.8 MW grid-connected solar rooftop project. The order, valued at Rs 33.6 crore, includes a comprehensive 5-year Annual Maintenance Contract (AMC) / Comprehensive Annual Maintenance Contract (CAMC) for multiple buildings within the Rangiya Division.
Ashok Leyland rose 2.60%. The company said that it has bagged an order for supplying 543 units of BS-VI diesel chassis and fully built buses to Tamil Nadu State Transport Corporation. The total consider that would be received by Ashok Leyland is Rs 183.80 crore. The buses have to be delivered during the period from June 2025 to December 2025.
NMDC added 1.82%. The state-owned iron ore miner informed that it has reduced the prices of its lump ore and fines, with the revised rates coming into effect from 4 June 2025. According to the latest update by the company, the prices for lump ore (65.5%, 10-40mm) have been set at Rs 6,300 per ton, while Fines (64%,-10mm) are priced at Rs 5,350 per ton.
Railtel Corporation zoomed 11.42% after the company secured an order worth Rs 274.40 crore from the Motor Vehicles Department, Maharashtra.
Garden Reach Shipbuilders & Engineers (GRSE) jumped 8%. The company announced the signing of memorandum of intent (MoI) and memorandum of understandings (MoUs) with various entities in Norway. It has signed a MoI with Carsten Rehder Schiffsmakler und Reederei GmbH & Co. KG, Germany, for the construction of four follow-on 7,500 DWT multi-purpose vessels. It has signed a memorandum of understanding (MoU) with Aries marine, a Dubai based, established and independent engineering and design firm for offshore platform and vessel design. On the same day, the company has also inked MoU with a global engine manufacturer.
Global Markets:
In Europe, the euro zone eased to 1.9% from 2.2% in May. The drop was largely driven by, a steep monthly drop in services inflation from 4% in April to 3.2% in May, building the case for a widely anticipated interest rate cut from the European Central Bank.
The HCOB Spain Manufacturing PMI climbed to 50.5 in May 2025 from 48.1 in April and the HCOB Composite PMI in Italy rose to 52.5 in May 2025 from 52.1 in April.
German factory orders rose 0.6% in April from the previous month, preliminary data showed on Thursday. This was largely due to a significant increase in the manufacturing of data processing equipment, electrical goods and optical products.
In Australia, the GDP growth came in at 1.3% year-on-year for Q1 2025. It's the same pace as the previous quarter, signaling steady but subdued momentum.
In China, the Caixin/S&P Global manufacturing purchasing managers’ index (PMI) declined to 48.3 in May from 50.4 in April, marking its first drop below the 50-point threshold, indicating contraction, since September of the previous year.
The Caixin China services purchasing managers' index came in at 51.1 in May, rising from 50.7 in April and remaining above the 50-mark, which separates an expansion from a contraction. China's services activity in May climbed from the month before, buoyed by rising tourism activity. However, new export orders slowed at a slightly lower pace, weighed by uncertainty from the U.S. tariffs.
China exports jumped 8.1% last month in U.S. dollar terms from a year earlier, according to data released by customs authority. Imports slumped by 0.2% in April from a year earlier.
In US, the US ISM Manufacturing PMI edged down to 48.5 in May from 48.7, marking the lowest reading since November. This marks the third straight month of contraction, with underlying components still signaling broad-based weakness.
The latest JOLTS report showed job openings at 7.39 million, topping estimates of 7.11 million and up from 7.2 million in the previous month.
The private sector hiring in the U.S. fell to its lowest level in over two years. Data from payroll processor ADP showed that payrolls increased by only 37,000 in May, compared to a revised 60,000 in April. The report has heightened concerns about the impact of trade-related uncertainty on the U.S. economy.
The fresh US labor data showed initial jobless claims climbed to 247,000 last week, up from a revised 239,000. Private sector job growth also slowed, with just 37,000 jobs added in May compared to 60,000 in April.