Here’s a concise overview of what’s moving the Indian stock market today, June 6, 2025, ahead of the RBI’s monetary policy announcement:
Thank you for reading this post, don't forget to subscribe!Indian Markets Brace for RBI Policy Amid Mixed Global Cues
Indian equities are set for a cautious start today as investors await the Reserve Bank of India’s (RBI) monetary policy decision. While Asian markets show strength, Wall Street’s overnight dip and key global developments are creating a mixed sentiment. Economists are widely expecting the RBI to announce a 25 basis point repo rate cut, bringing the rate to 5.75%.
Key Market Movers Overnight:
- RBI Rate Cut Expectations: The market is largely pricing in a 25 bps rate cut from the RBI today, marking the third consecutive cut. This expectation has fueled optimism in rate-sensitive sectors like banking, real estate, and auto.
- Gift Nifty Signals Tepid Open: Gift Nifty trading around 24,845 suggests a slightly subdued opening for Indian benchmark indices, indicating some caution.
- Asian Markets Rise on US-China Talks: Sentiment in Asia improved after a phone call between US President Donald Trump and Chinese President Xi Jinping. The leaders discussed trade, with Trump indicating a “very positive conclusion” and plans for further discussions, boosting markets like Japan’s Nikkei 225 and South Korea’s Kospi.
- Wall Street Dips; Tesla Plunges: US stocks closed lower, largely dragged down by a significant 14.26% slump in Tesla shares. The electric vehicle maker’s stock has taken a hit amid an intensifying public feud between CEO Elon Musk and President Trump over a new US tax bill. Other tech giants like Nvidia, Apple, and AMD also saw declines.
- ECB Cuts Rates, Hints at Pause: The European Central Bank (ECB) cut its key deposit rate by 25 basis points to 2%, as anticipated. This marks its seventh consecutive reduction, but the central bank suggested a potential pause in its easing cycle going forward.
- US Unemployment Claims Rise: New applications for unemployment benefits in the US increased to a seven-month high last week, reaching 247,000.
- Gold Prices Gain: Gold prices rose, heading for weekly gains, with spot gold up 0.3% to $3,361.36 an ounce.
All eyes will be on RBI Governor Sanjay Malhotra’s announcement later today, as his commentary will be crucial in shaping market direction amid these diverse global and domestic signals.
