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HomeMarket NewsNifty closes at 2025 high as RBI's rate cut boosts rate-sensitive banks
The NSE Nifty 50 climbed 100 points, or 0.40%, to end at 25,103, marking its highest closing level in 2025 and holding firmly above the psychological 25,100 mark. The BSE Sensex advanced 256 points to settle at 82,445. Gains were broad-based, led by banks, autos, and midcaps.
Indian markets rose for a fourth consecutive session on Monday, with the benchmark Nifty 50 closing at its highest level of the year, as a sharper-than-expected interest rate cut by the Reserve Bank of India (RBI) bolstered banking and financial stocks and lifted overall sentiment.
The NSE Nifty 50 climbed 100 points, or 0.40%, to end at 25,103, marking its highest closing level in 2025 and holding firmly above the psychological 25,100 mark. The BSE Sensex advanced 256 points to settle at 82,445. Gains were broad-based, led by banks, autos, and midcaps.
The Nifty Bank index gained 261 points to finish at 56,840 after hitting an all-time high of 57,010 earlier in the session—its second consecutive record high. The Nifty Midcap 100 surged 665 points to 59,675, reflecting robust risk appetite among investors.
Banking and financials lead on rate optimism
The RBI’s larger-than-anticipated rate cut, announced late last week, continued to support the rally in banks and non-bank financial companies (NBFCs), with nearly 40 Nifty constituents ending in positive territory.
Jio Financial Services led the gainers on the Nifty, rising over 6% after the company’s asset management joint venture with BlackRock announced its executive leadership team. Kotak Mahindra Bank and Bajaj Finance also saw strong buying interest, each gaining over 3%.
Gold loan financiers rallied between 4% and 8% after the central bank relaxed norms for gold-based lending, further fueling expectations of higher disbursements and credit growth in the sector.
Autos accelerate on hopes of stronger consumer demand
Auto stocks moved higher on hopes that lower interest rates would stimulate vehicle demand. Hero MotoCorp and Maruti Suzuki were among the top performers in the auto pack, with Tata Motors adding 1% on optimism around its mid-term growth outlook.
Life insurers gain on monthly growth trends
Shares of HDFC Life and Max Life rose as investors reacted positively to the companies’ May business updates, which indicated outperformance relative to peers in terms of new business growth.
Other movers
Mahanagar Gas Ltd (MGL) surged 6% after the city gas distributor said it would prioritize volume growth over margins and forecasted double-digit volume growth over the next 2–3 years.
Multi Commodity Exchange (MCX) jumped 7% after receiving regulatory approval from SEBI to launch electricity contracts, a move expected to diversify its revenue streams.
Hindustan Zinc extended its winning streak, gaining 15% over the last nine sessions, tracking a sharp rally in silver prices.
On the downside, shares of food tech firms Swiggy and Eternal Technologies fell between 2% and 3% after ride-hailing app Rapido announced its foray into the food delivery space, intensifying competitive pressures.
Advances outpaced declines in Monday’s session, with the advance-decline ratio at 5:2 on the NSE, suggesting underlying strength in the broader market.
Investors are expected to closely monitor further monetary signals from the RBI and macroeconomic data, including inflation and industrial output figures due later this week, for cues on the market's trajectory.
