43 stocks hit 52-week lows, 119 stocks at 52-week high as stock market ends in green after RBI's steep rate cut

43 Stocks Hit 52-Week Lows, 119 at Highs as Markets Close in Green Post RBI’s Steep Rate Cut

June 6, 2025 | Mumbai — The Indian stock market ended Friday’s session on a positive note after the Reserve Bank of India (RBI) surprised investors with a steep and unexpected interest rate cut, igniting strong buying across sectors. The benchmark indices closed in the green despite a striking divergence in stock performance—43 stocks slumped to their 52-week lows while 119 surged to their 52-week highs.

RBI Surprises with 50-Basis-Point Rate Cut

The Monetary Policy Committee (MPC) of the RBI slashed the repo rate by 50 basis points to 5.75%, citing softening inflation and a pressing need to stimulate economic growth. This was steeper than the market expectation of a 25-bps cut.

RBI Governor Shaktikanta Das, in his post-policy address, emphasized that while inflation has eased within the comfort band, domestic demand remains fragile. “We believe a front-loaded rate cut will provide the momentum needed for a sustainable recovery,” Das said.

Market Reaction: Indices Rise, Volatility Persists

The BSE Sensex rose 312 points to close at 76,180, while the NSE Nifty 50 gained 92 points, ending at 23,210. Midcap and smallcap indices also saw significant movement, with the Nifty Midcap 100 up 0.7% and the Nifty Smallcap 100 rising 1.1%.

However, the broader market trend was mixed. Of the total traded stocks on the NSE, 43 touched their 52-week lows, indicating pressure in specific pockets, particularly in cyclical sectors and highly leveraged companies. Meanwhile, 119 stocks scaled fresh 52-week highs, mostly from rate-sensitive sectors like real estate, auto, and consumer durables.

Sectoral Snapshot: Rate-Sensitive Stocks Rally

Rate-sensitive sectors were the biggest beneficiaries of the RBI’s dovish stance.

• Nifty Realty surged 3.5%, led by gains in Godrej Properties, DLF, and Oberoi Realty.

• Nifty Auto rose 2.2%, with Mahindra & Mahindra, Maruti Suzuki, and Bajaj Auto among top gainers.

• Bank Nifty gained 1.1%, lifted by private sector lenders such as HDFC Bank and Axis Bank.

Conversely, IT stocks lagged amid concerns that the weakening rupee might pressure margins, and FMCG stocks saw marginal profit booking after a recent rally.

Analysts Weigh In

Richa Singh, Senior Economist at Prabhudas Lilladher, said, “The RBI’s aggressive cut sends a clear signal that growth is the central focus for the second half of 2025. It is likely to boost credit demand, particularly in retail lending, housing, and SMEs.”

Ajay Menon, Head of Equities at Kotak Securities, noted, “The rate cut has re-rated realty and auto stocks. However, the rise in 52-week lows is a cautionary signal that certain segments of the market remain under stress, especially export-oriented and debt-heavy firms.”

52-Week Highs & Lows: A Tale of Divergence

The sharp contrast between stocks hitting 52-week highs and lows indicates sectoral bifurcation in the current market environment.

Stocks at 52-week highs included:

• Titan Company

• LTIMindtree

• Shriram Finance

• L&T

• Ashok Leyland

Stocks at 52-week lows included:

• Zee Entertainment

• Vodafone Idea

• Jindal Stainless

• NBCC

• Canara Bank

Some of these lows are driven by company-specific concerns, while others reflect broader structural challenges in their respective sectors.

Foreign and Domestic Flows

Foreign Institutional Investors (FIIs) turned net buyers after a week of outflows, injecting ₹2,163 crore into Indian equities. Domestic Institutional Investors (DIIs) also supported the rally with a net purchase of ₹1,781 crore.

The RBI’s clear growth pivot is seen as a green light for foreign investors, especially in sectors where rate cuts directly improve cash flows and valuations.

Currency and Bond Market Update

The Indian rupee weakened marginally to ₹83.41/USD, reflecting global dollar strength. However, the 10-year benchmark bond yield fell sharply by 15 bps to 6.85%, signaling bond market optimism around inflation control and accommodative policy.

Investor Outlook: Optimism with Caution

While the market has welcomed the RBI’s rate cut, analysts caution against overexuberance.

“Liquidity-driven rallies can be sharp, but investors must stay selective. Quality names in real estate, housing finance, and consumer discretionary are good bets, but speculative low-cap names still pose risk,” said Dipen Sheth, CIO at Raymond James India.

Investors are advised to watch for earnings commentary in the upcoming Q1FY26 season to gauge whether lower rates are translating into real demand.