After opening on a lower note, Indian benchmark indices extended their upward momentum throughout the session, ending the session in green.

The BSE and the NSE benchmark indices witnessed a sharp rally as investors cheered a 50-basis-point repo rate cut by the Reserve Bank of India's Monetary Policy Committee (MPC).

At the closing bell, the BSE Sensex  closed higher by 746 points (up 0.9%)

Meanwhile, the NSE Nifty closed points 252 higher (up 1%)

Bajaj Finance, Axis Bank, and Maruti Suzuki are among the top gainers today

Bharti Airtel, Tata Steel, and Sun Pharma, on the other hand, were among the top losers today.

The GIFT Nifty was trading at  25,09,8, higher by 244 points at the time of writing.

The BSE MidCap index ended 0.9% higher, and the BSE SmallCap index ended 0.4% higher.

Barring the industrial sector and the consumer goods sector, all other sectoral indices are trading positively today, with stocks in the auto sector and the metal sector witnessing buying.

The rupee is trading at Rs 85.8 against the US$.

Gold prices for the latest contract on MCX are trading 0.3% higher at Rs 99 940 per 10 grams.

Meanwhile, silver prices were trading 2.8% higher at Rs 1,07,000 per 1 kg.

Here are the four key factors driving the market's momentum:

#1 RBI's 50 bps repo rate cut surprises Street

RBI cut interest rates by 0.5% to 5.5% to boost economy, which may benefit sectors like housing, autos and consumer goods.

#2 CRR cut boosts banking stocks

RBI cut CRR by 1% to 3%, releasing Rs 2,500 bn into the banking system, boosting liquidity and supporting credit growth, which is expected to benefit banking stocks and overall economic momentum.

#3 Firm cues from global markets

Asian markets like South Korea and Japan rose, boosting investors sentiment and US market also looked positive before opening.

#4 Trump-Xi call eases trade worries

U.S. President Donald Trump and Chinese President Xi Jinping discussed on-going trade issues and rare earth supplies.

Trump described the conversation as very positive and announced plans for further trade talks between two countries.

#5 Crude oil decline

Brent crude oil dropped slightly to Rs 5,568 which is good news for India since the country relies heavily imported oil, meeting about 85% of its needs through imports.
 

Azad Engineering Shares Plummet on Block Deal

In the news from engineering sector, shares of Azad Engineering dropped 8% on 6 June 2025 after a block deal worth Rs 7.3 billion (bn).

Azad Engineering in the month of May has signed 6-year agreements with GE Vernova Power to supply precision components for global power sector.

Azad Engineering will supply precision components worth Rs 45.2 bn to GE Vernova Power for use in nuclear, industrial and thermal power application.

Azad Engineering in January signed a long-term deal with GE Vernova to supply components for gas turbine engines, boosting its presence in the global power generation market.

Over the past year, Azad Engineering has gained 4% but dropped 8% in last six months.

Gravita India Surges on Recycling Scheme

Moving on to the news from auto sector, shares of Gravita India jumped 4% on Friday as the government's critical mineral recycling scheme is reportedly nearing approval.

India is nearing approval of scheme to incentivise recycling critical minerals, supporting its clean energy goals.

The scheme will offer subsidies to recycle for 24 key minerals like lithium and cobalt, likely launching later this year.

Commerce Minister Piyush Goyal said the world should address risk of critical mineral supply chains being limited to few countries and noted India and Italy can collaborate in this sector.

Critical Mineral like cobalt, lithium and rare earths are essential for clean energy tech, such as wind turbines and electric vehicles.

Gravita India is a recycling company that produces and recycles materials like lead, aluminium and plastic.
 

Cochin Shipyard shares surge on defence

Moving on to the news from defence sector, Cochin Shipyard's share jumped 8% on optimism about rising defence spending in India and globally, extending its 4-day winning streak.

Defence Secretary said India may increase defence spending to 2.5% of GDP by FY30, boosting the sector, after which Cochin Shipyard's stock rallied.

NATO is planning to boost defence spending and stockpiles, which has increased investors confidence in the defence sector globally.

Cochin Shipyard has a strong order book of Rs 220 bn, ensuring good revenue visibility for the next few years.

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