Market This Week: Indian Stock Market on RBI Rate Cut Boost, IPOs And Global Trends In Focus

Indian stock markets closed the week on a high note, recovering from early losses after the Reserve Bank of India (RBI) surprised investors with the mega interest rate cut. The central bank reduced the repo rate by 50 basis points to 5.50%, which was twice what the markets had expected.

Additionally, it cut the Cash Reserve Ratio (CRR) by 100 basis points, which is estimated to add Rs 2.5 lakh crore into the banking system. These moves were aimed at supporting economic growth amid global and domestic uncertainties.

Indian Stock Market

Throughout most of the week, the Sensex and Nifty 50 traded in a narrow range. However, on Friday, both indices surged sharply. The Sensex rose by 747 points or 0.92% to end the day at 82,188, while the Nifty 50 gained 252 points or 1.02% to settle at 25,003.

The rate cut gave a major push to rate-sensitive sectors like banking, real estate, finance, and automobiles. These sectors saw strong buying interest as investors anticipated lower borrowing costs and better credit availability.

Several factors will influence the Indian stock market. Key triggers include India's retail inflation data, global trade policies, foreign investment trends, and other macroeconomic indicators.

IPO Market Updates

Sacheerome Ltd. IPO:
Sacheerome Ltd., a leading manufacturer of fragrance and flavour compounds for various industries, is launching an initial public offering (IPO) worth Rs 61.62 crore. The IPO is a fresh issue of 60.4 lakh shares. The subscription will open on Monday, June 9, and close on Wednesday, June 11. Shares will be listed on the NSE SME platform on Monday, June 16. The price band for the IPO is set between Rs 96 and Rs 102 per share, and the lot size is 1,200 shares. GYR Capital is managing the IPO.

Jainik Power and Cables Ltd. IPO:
Another company entering the IPO market is Jainik Power and Cables Ltd., which manufactures aluminium wire-rods and power cables for the power sector in North India. The company aims to raise Rs 51.30 crore through a fresh issue of 46.63 lakh shares. The IPO will open on Tuesday, June 10, and close on Thursday, June 12. Shares are expected to be listed on Tuesday, June 17, on the NSE SME platform. The price band is Rs 100 to Rs 110 per share, with a lot size of 1,200 shares. The proceeds will be used for corporate purposes.

FII and DII Activity

Foreign investors (FPIs) turned net buyers of Indian stocks on Friday after being sellers the previous day. They purchased equities worth Rs 1,009.7 crore, as per provisional data from the National Stock Exchange.

Domestic institutional investors (DIIs) remained consistent buyers, investing Rs 9,342.5 crore worth of stocks. This marked the 14th straight session of net buying by DIIs, showing strong domestic confidence in the market.

Global Cues

Global market cues, especially developments in trade negotiations and fluctuations in U.S. bond yields, will continue to impact investor sentiment and market movement. Also, Wholesale inventories of the US, Trump's travel ban on 12 countries going into effect will be a key player.

Corporate Action

Several well-known companies will go ex-dividend in the coming week, starting Monday, June 9. These include Indian Bank, Asian Paints, Tata Elxsi, Trent, Tata Chemicals, Canara Bank, and NELCO. This could attract investor attention and affect short-term price movements in these stocks.

Rupee Movement

On the currency front, the Indian rupee closed slightly lower at 85.78 against the US dollar, falling by 0.04 points. The movement was modest despite the major announcements from the RBI.