**Stock Market Outlook: Impact of RBI Rate Cut and Nifty50’s Path to 25,500**

Fast Summary:

• The Indian stock market rallied strongly in the first week of June after a surprise monetary easing by the RBI.
• RBI cut the repo rate by 50 basis points and CRR by 100 basis points, injecting Rs. 2.5 trillion liquidity into banks.
• Nifty ended above the psychological 25,000 mark; Sensex closed at 82,188.99,up by 747 points.
• Key drivers to watch next week include retail inflation data, global trade developments, FII flows reversal (from net buying to selling), industrial output figures, and IPO activity in primary markets.
• Sector trends:

– Realty: Outperformed for four consecutive weeks; stocks like DLF and Godrej Properties gained momentum.
– Banking & Finance: Broke out of consolidation zones with prominent stocks like HDFC Bank showing strength.
– Metals & Industrials/Automobile: Positive momentum persists driven by support levels and stimulus expectations from China.

Nifty is predicted to test an upside target of 25,500 with support at 24,700-24,750. Bank Nifty showed bullish patterns and aims for an upside target of 58,700.

Indian Opinion Analysis:

The RBI’s aggressive policy move demonstrates its focus on bolstering liquidity amidst ongoing global uncertainties such as trade tensions and fluctuating tariffs. By cutting both repo rates and CRR dramatically ahead of schedule-even when inflation forecasts remain contained-the central bank aims to stimulate economic activity through credit growth while maintaining stability in rate-sensitive sectors such as real estate and banking.

Investors appear optimistic about medium-term prospects due to both regulatory interventions (like RBI measures) and historical performance trends during June indicating bullish tendencies. However,challenges persist with foreign investor withdrawals seen this month alongside sensitivity to international market shifts like US CPI releases or China’s trade balance updates.

The implications may extend beyond immediate gains if government actions align cohesively with this monetary push-though uncertainties in FII behavior or negative cues from macroeconomic data could temper broader optimism ahead.

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