Repo Rate Cut in Indian Stock Market


Today on June 6, 2025, the Reserve Bank of India (RBI) was expected to cut repo rate by 25 basis points but the Rate cut was increased to 50 basis points bring it down to 5.5%.This marks the third consecutive rate cut in 2025, totaling a 100 basis point reduction since February.Adding to this the RBI reduced the Cash Reserve Ratio too by 100 basis points to 3%, targeting 2.5 lakh crore more into the banking system.


CRR Cut aims to open up more liquidity into the banking system and make money flow more feasible in the Indian economy.
There is a change in Policy stance from accommodative to neutral showing the country's central bank is inclined towards growing the economy with inflation control.

For borrowers this would lead to lower interest rates, leading to decreased EMIs for borrowers.
On the other hand reducing the CRR would mean that banks will be having more funds to lend to the increased borrowers.

For Investors:
Fixed Deposit Rates: The reduction in repo rate may lead to a decline in fixed deposit interest rates.
This would lead to more investments on other assets like mutual funds etc.

Economic Outlook
The RBI's decision reflects its confidence in the current economic conditions, with inflation projected to remain within the target range. The GDP growth forecast for FY26 stands at 6.5%, indicating a stable growth trajectory.

Conclusion
Are you a trader or investor ? Confused with these terms and there impact.
MHV Education which is the Best Stock Market Institute in Dehradun brings you Best Stock Market Trading Courses that includes in depth study of all these macro factors and how they directly or indirectly impact stock market prices.

Comments

Post a Comment

Popular posts from this blog

Alligator Indicator In Share Market trading

Image
Williams Alligator Indicator: Most used strategy by professional traders specifically for intraday traders, used in chart analysis. Lets discuss this tool in detail. MHV EDUCATION, offers the Best Stock Market Courses in Dehradun , which covers all these tools helping you to make precise decisions while trading the share market. Here, we will explore how this indicator can be used effectively and how you can learn to apply it in real-time. 📈 Williams Alligator Indicator Developed by legendary trader Bill Williams, the Alligator Indicator is a combination of three smoothed moving averages which represent the behaviour of an alligator helping to predict market trends : Jaw (Blue Line) — 13-period SMMA shifted 8 bars into the future Teeth (Red Line) — 8-period SMMA shifted 5 bars into the future Lips (Green Line) — 5-period SMMA shifted 3 bars into the future These lines represent the behavior of an alligator which is a metaphor for market trends. When the three lines are very close to e...
Read more

Time Frames in Technical Analysis

Any Technical Analysis course must guide you how to use the right chart time frames with different trading setups. Whether you’re a day trader or a long-term investor, selecting the correct time frame defines if you are entering the markets as an investor or a trader. Beginner ? Enrolling in the Best Stock Market Course in Dehradun or a Trading Course in Dehradun will help you create a strong foundation to read charts effectively. What Are Chart Time Frames? Chart time frames represent the interval of time each candlestick or bar on a chart covers.A 5 min chart time frame forms a candle after every 5 mins giving the high,low,close,open in those 5 mins while a daily chart shows price changes for the entire day. Let’s discuss more about these time frames : 1. Scalping: Very small Time Frames (1-Minute to 5-Minute Charts) Scalpers tend to take multiple quick trades during the day with an objective to profit from small price fluctuations during the day. They use 1-minute to 5-minute ch...
Read more

How the Global Markets Impact the Indian Stock Market

The Indian stock market is highly influenced by the global market news, particularly from the United States . Investment market is interconnected, where every countries policy impacts the global markets in some or the other way. That is the reason why a trader or an investor should always stay updated with international news. Looking for the   Best Share Market Institute in Dehradun  here at  MHV EDUCATIONS  you will find all the answers you need. 1. How US Stock Market impacts India The US stock market, which is led by indices like the Dow Jones, NASDAQ, and S&P 500, reflects the overall economic conditions of the USA market, which is closely tracked by investors worldwide. Sharp movements in the these indices mostly leads to sharp moves in Indian indices like NIFTY and Sensex due to the increased demand created by buyers globally. 2. Dollar-Rupee Dynamics Global market movements often lead to fluctuations in the USD-INR exchange rate. A strong dollar generally...
Read more