News

MPC VOTED TO CUT REPO RATE BY 50 BPS TO 5.50%                

Alert: RBI Cuts Repo Rate For The Third Straight Policy

FY26 CPI INFLATION SEEN AT 3.70% Vs 4% EARLIER

RBI STANCE CHANGED TO NEUTRAL FROM ACCOMMODATIVE

MSF & SDF Rates Adjusts To 5.75%  & 5.25% Respectively

FY26 REAL GDP GROWTH PROJECTION UNCHANGED AT 6.50% 

Real GDP Projection For Q2FY26 Unchanged At 6.70%

Real GDP Projection For Q3FY26 Unchanged At 6.60%

Real GDP Projection For Q4FY26 Unchanged At  6.30%

Q1FY26 CPI Inflation Projection Revised Lower To 2.90% Vs 3.60% Earlier

Q2FY26 CPI Inflation Projection Revised Lower To 3.40% Vs 3.90% Earlier

Q3FY26 CPI Inflation Projection Revised Higher To 3.90% Vs 3.80% Earlier

Q4FY26 CPI Inflation Projection Unchanged 4.40%

CASH RESERVE RATIO CUT BY 100 bps   

CRR CUT TO 3% FROM 4%

TO CUT CRR IN FOUR TRANCHES OF 25 bps EACH

CRR CUT TO RELEASE `2.5 LK CR OF LIQUIDITY

Industrial Activity Recovering Gradually, Though Uneven              

MPC Felt It Is Now Left With Very Limited Space To Support Growth

Current Account Deficit For FY26 To Remain Well Within Sustainable Levels

Net FDI Important For Forex Reserves

Gross FDI Invest Increased Sharply In FY25

Rise In Repatriation Of FDI A  Sign Of A Maturing Market

Stress In Unsecured Loans & Credit Card Portfolios Has Abated

Policy Actions Should Be Seen As  Step Towards Boosting Growth

Global Backdrop Remains Fragile, Highly Fluid

Global Growth And Trade Projections Have Been Revised Downwards

Last Mile Of This Inflation Is Turning Out To Be A Little More Protracted

Global Growth, Trade Projections  Cut By Multilateral Agencies

Indian Economy Presents A Picture  Of Strength, Stability

Indian Economy Offers Immense Opportunities To Investors

The Nifty realty sectoral index surged majorly by about 3% after the RBI announced its decision to cut interest rates by 50 bps, apart from cutting CRR by 100 bps.

Top Stocks 

Godrej Properties up 5%

DLF up 4.2%

Oberoi Realty 2.9%

Sobha Ltd up 2.5%

The Nifty Bank index has bounced back after a period of relative decline. The index is currently trading with gains of above 0.75%.

The top-performing stocks in this index include Axis Bank, IDFC First Bank and PNB Bank.

The central bank has introduced a 100 basis point slash. Bringing it down from 4% to 3%.

The Reserve Bank of India has retained its GDP growth projection for FY26 at 6.5%.

#RBIPolicy | @RBI revises inflation forecast for FY26 lower to 3.7% from 4% pic.twitter.com/ijoWq0SOW4

— CNBC-TV18 (@CNBCTV18Live) June 6, 2025

The Monetary Policy Committee (MPC) has shifted its policy stance from ‘Accommodative’ to ‘Neutral’.

The Nifty Bank made a sharp recovery after the RBI announced a major decision to cut the interest rates or repo rate by 50 basis points, reducing it to 5.50%.#RBIPolicy | Global growth and trade projections have been revised downwards

Indian economy presents a picture of strength & stability, says RBI Governor #SanjayMalhotra pic.twitter.com/5iNO0SD7TW

— CNBC-TV18 (@CNBCTV18Live) June 6, 2025

The Reserve Bank of India, led by Governor Sanjay Malhotra, has cut the interest rate, or repo rate, further by 50 basis points.

The interest rate now stands at 5.50%.

Pharma Watch: Vishal Manchanda, Research Analyst, Systematix Group 

On Dr Reddy’s Laboratories

So I have a hold on DRL as of now. So the sector itself has lot of uncertainties. DRL probably has been doing a lot in terms of putting in lot of licencing relationships with companies to kind of ensure that they continue to grow even with one of their large opportunities. So, basically Revlimid coming off next year, they are putting in pieces together to replace what they lose from Revlimid.

But while they’re putting in pieces together, we are not sure how long these efforts will take in terms of reflecting in the numbers. So one of the large opportunities we have for DRL is semaglutide launch in Canada next year. Again, it’s a large market. They are one of the four filers in Canada who are targeting to launch semaglutide there. We might see more coming through before the patent expiry. So there are a lot of uncertainties in terms of whether the innovator will give market share to the generic players or not. So we’ll have to wait and see. The market size is large, but execution is where things can go wrong. Right now the market size is about a billion dollar in Canada. But that can expand, because once prices come down in terms of volume, the opportunities can expand 20-30% or even higher.

On Divi’s Laboratories

So I have a target valuation multiple of 40 times on FY27 while on my numbers, it’s trading around 60 times FY27. So if I look at the price earning to growth ratio, it’s it should be around 2.5 times of what growth we expect.

While if I look at global peers like Lonza, Buchi which probably have the same growth rates, so their PEG ratios are around, Lonza would be around 1.3x and Buchi is at less than 1x in terms of the valuation. So that is where the disconnect is but having said that Divi’s Laboratories probably does a higher return on equity versus these guys.

On Sun Pharma

my broader rationale for the sector is we need to not be into names that have large US generics exposure. There might be a US exposure, but less of US generics exposure is what I prefer. And if I look at Sun Pharma, their US generics exposure is about 15% of the overall sales, while the peers are around 40-50% so I think US generics is where we I think there will be struggle in terms of growth.

So probably US generics will pull down the growth rate for most companies over the next three to four years. So Sun not being positioned there, and the rest of the 85% of the business of Sun can grow high single digit to mid-teens. So probably Sun can deliver higher growth in the sector versus the peer names.

On Cipla, Ajanta Pharma

Cipla and Ajanta Pharma are the other names I prefer. So again, Cipla, I think there is visibility on a pipeline as far as the US is concerned, their US exposure is also not that large like others.

They are around 30% exposed to the US, so a relatively lower exposure, maybe higher than Sun, but still lower than Zydus, Lupin or Dr Reddy’s Laboratories. So that’s one positive, and I think that domestic franchise is relatively much stronger than other companies in the large cap space, those two are the ones that I like.#JustIn | #AzadEngineering Large Trade: 48 lk shares (7.4% eq) worth ₹780 cr change hands at an avg ₹1,640/sh via block deals pic.twitter.com/YkElxBA4Iy

— CNBC-TV18 (@CNBCTV18Live) June 6, 2025

Here are a couple of stock recommendations by Siddhartha Khemka, Head-Research, Wealth Management at Motilal Oswal Financial Services

On Bajaj Finserv: Today’s block is an overhang in the last few days, but make a point to look at it from a positive perspective. We prefer the underlying business of Bajaj Finance over the holding company, Bajaj Finserv. However, both stocks move in tandem, and hence, a positive view on both stocks is warranted.

On Niva Bupa Health Insurance Company: Recently initiated coverage on Niva Bupa. Positive on the entire health insurance space, where Niva Bupa comes in the midcap space, so we have a buy rating and a target price of ₹100 on Niva Bupa.

The shares of the defence company Cochin Shipyard surged on Friday’s trade by over 7%. This marks the 4th straight session of gains for the company. In these 4 sessions, that company’s shares have risen by close to 25%, with Thursday’s session, with a 12% gain, being the biggest of all. The current price stands at ₹2,478.20.

 #CNBCTV18Market | Defence stocks higher, #CochinShipyard up over 6% pic.twitter.com/5223IOveAN

— CNBC-TV18 (@CNBCTV18Live) June 6, 2025

The shares of ZF Commercial jumped over 5% on Friday. This came to pass after a large trade saw 6 Lk shares or 3.17% in equity share,  worth ₹792 Cr change hands at ₹13,191/sh in the Block Deal Window.

 #CNBCTV18Market | Market opens flat ahead of #RBIPolicy pic.twitter.com/dbmUVTLyKi

— CNBC-TV18 (@CNBCTV18Live) June 6, 2025

According to Federation of Automobile Dealers Associations’ (FADA) May data, total vehicle retail sales stood at 22.12 lakh units, marking a 3.3% decline month-on-month (MoM) but a 5% rise year-on-year (YoY).

Two-wheeler sales came in at 16.52 lakh units, down 2.02% MoM but up 7.31% YoY.

Commercial vehicle (CV) sales dropped sharply, falling 11.25% MoM and 3.71% YoY to 75,615 units.

 #RupeeCheck | Rupee Opens At 85.87/$ Vs Thursday’s Close Of 85.80/$ pic.twitter.com/o2yF19CyMe

— CNBC-TV18 (@CNBCTV18Live) June 6, 2025

#JustIn | #ZFCommercial Large Trade: 6 lk shares (3.17% eq) worth ₹792 cr change hands at ₹13,191/sh in block deal window https://t.co/wF7D7lOKsb pic.twitter.com/t7I31IWzBU

— CNBC-TV18 (@CNBCTV18Live) June 6, 2025

Bajaj Finserv witnessed a large block trade with 2.86 crore shares (1.79% equity) changing hands for ₹5,506 crore at ₹1,925 per share.

More Information

Brokerage firm JPMorgan has downgraded shares of Tata Motors Ltd. to “neutral” from its earlier rating of “overweight” on Friday, June 6, citing new headwinds that have emerged for the passenger and commercial vehicle manufacturer.

Tesla shares crashed 14% on Thursday after what started off as a criticism of US President Donald Trump’s Big Beautiful Bill.

The market cap loss of Tesla was more than the entire market cap of India’s largest IT services company, Tata Consultancy Services (TCS), which stood at $142 billion at the end of Thursday’s close.

 #StocksToWatch | Here’s a list of stocks in focus going into trade today???? pic.twitter.com/kFlPT2NrHK

— CNBC-TV18 (@CNBCTV18Live) June 6, 2025

The Reserve Bank of India (RBI) is expected to lower the repo rate by 25 basis points (bps) at its Monetary Policy Committee (MPC) meeting today (June 6), according to a CNBC-TV18 poll. If done, this would mark the third consecutive rate cut.

RBI MPC LIVE Updates Right Here 

Jefferies On Microfinance (MFI) Sector

In Q4FY25, MFI Disbursements Fell 38% YoY but Rose 12% QoQ

AUM Fell 3% QoQ & 14% YoY

Loans Overdue For 31–180 Days Eased Slightly To 6.2% In March From 6.4% In December

Asset Quality May Take 1–2 Quarters To Normalise; MFIN 2.0 In Focus

Election-Related Stress Seen as Low Unless Rules or Waivers Change

Spandana, Fusion, CredAG Vulnerable Due To High 4+ Loan Exposure

Bandhan Bank Is Likely To Perform Better In This Environment

Amid uncertainties surrounding Trump’s tariffs and the chaos surrounding Trump and Musk’s spat, the Asian indices are trading in a mixed bag.

The Hang Seng index is trading in red with losses of around 0.44%.

The Nikkei 225 index in Japan is trading with gains of around 0.49%.

The CSI 300 index is trading with a negligible decline of around 0.026%.#CNBCTV18Market | Here’s a list of global market cues that are in focus going into trade today???? pic.twitter.com/tuY2nOaHQ7

— CNBC-TV18 (@CNBCTV18Live) June 6, 2025

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