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This past week was marked by volatility, with cautious sentiment in the early days giving way to strong gains by the end. In this weekly market snapshot we shall delve into MPC decision, market movers and vehicle sales figures. Several factors influenced market movements, including developments in global geopolitics and economic reports, while the ongoing exchange between Trump and Musk provided investors with unexpected comic relief. Notably, automakers reported their May 2025 sales figures, offering insights into industry trends.
The Reserve Bank of India (RBI) released its Annual Report for FY24-25, followed by a surprise decision by the Monetary Policy Committee (MPC), which revised the repo rate and cash reserve ratio in a bid to stimulate growth. Meanwhile, the OECD Economic Outlook Report—published on June 3, 2025—adjusted global GDP growth projections downward from 3.1% to 2.9%, signaling economic uncertainty. Throughout the week, several sectors delivered strong returns, with PSU stocks remaining investor favorites, alongside Private Banks, NBFCs, and Realty.
Monetary Policy Committee Meeting & Key Announcements
The MPC met from June 4-6, 2025, making decisive moves to support economic expansion.
- Repo Rate: Reduced by 50 basis points, exceeding market expectations, after previous tranches of 25 basis points in early 2025. The stance was changed from accommodative to neutral.
- Liquidity Boost: RBI has injected ₹9.5 lakh crore into the banking system since January 2025, transitioning liquidity from a deficit to a surplus.
- Cash Reserve Ratio (CRR): Lowered from 4.0% to 3.0%, to be implemented in four tranches of 25 basis points starting September 6, 2025. This move is expected to release ₹2.5 lakh crore into the banking system by December 2025.
- Inflation Projection: CPI inflation is expected to remain low during FY25-26.
Following the rate cut announcement, a broad market rally ensued, with banking and finance stocks leading the charge while all indices moved into positive territory.
Weekly Gainers & Losers
Realty stocks performed well throughout the week, with several recently listed stocks—previously under pressure—experiencing a strong rebound. Among the top losers, some stocks that had surged over 20% in May 2025 saw corrections.
Top Gainers
- AstraZeneca Pharma India
- Cochin Shipyard Ltd
- Brainbees Solutions Ltd
- Sobha Limited
- Prestige Estates Projects
- Brigade Enterprises
- KFin Technologies Ltd
- Godrej Industries
- IRCON International Ltd
- Valor Estate Ltd
Top Losers
- MMTC
- Avanti Feeds
- Aptus Value Housing Finance India Ltd
- Suzlon Energy
- Gallantt Ispat Ltd
- ITI
- Jyoti CNC Automation Ltd
- Hitachi Energy India Ltd
- Sona BLW Precision Forgings Ltd
- Godfrey Phillips India
May 2025 Vehicle Sales Overview
Mahindra & Mahindra
- Utility Vehicles: 52,431 (+21% YoY)
- Commercial Vehicles: 21,392 (+8%)
- Three-Wheelers: 6,635 (+11%)
- Total Vehicle Sales: 84,110 (+17%)
- Total Tractor Sales: 40,653 (+10%)
Tata Motors
- Total CV Sales: 28,147 (-5%)
- Total PV Sales: 42,040 (-11%)
Eicher Motors
- Motorcycles: 89,429 (+26%)
- Eicher Trucks & Buses: 7,258 (+8%)
- Volvo Trucks & Buses: 144 (-21%)
- VECV: 7,402 (+7%)
Escorts Kubota
- Tractors: 10,354 (+0.7%)
- Construction Equipment: 321 (-30%)
Hero MotoCorp
- Two-Wheelers: 507,701 (+2% YoY)
TVS Motor Company
- Two-Wheelers: 416,666 (+16%)
- Three-Wheelers: 15,109 (+46%)
Bajaj Auto
- Two-Wheelers: 332,370 (+9%)
- Commercial Vehicles: 52,251 (+5%)
Maruti Suzuki
- Passenger Cars: 68,736 (-13%)
- Utility Vehicles: 54,899 (+1%)
- Total Exports: 31,219 (+80%)
- Total Sales: 180,077 (+3%)
Ashok Leyland
- Domestic Vehicles: 14,534 (+5%)
- Export Vehicles: 950 (+14%)
- Total Vehicles: 15,484 (+5%)
Atul Auto
- Total Vehicles: 2,502 (+7%)
This week’s market performance reflected shifting economic conditions, key policy decisions, and evolving investor sentiment. PSU stocks and realty players led the gains, while select stocks that surged in May saw corrections. Meanwhile, the automobile sector displayed mixed results, with Mahindra, TVS, and Eicher posting strong growth, while Tata Motors and Maruti Suzuki faced declines in specific segments.
Also Read: Weekly Market Snapshot (Week 22, 2025)
References
- RBI Governor’s Statement after Monetary Policy Committee (MPC) Meeting
- Monetary Policy Statement, 2025-26: Resolution of the Monetary Policy Committee, June 4 to 6, 2025
- Reserve Bank of India Annual Report for 2024-25
- OECD Economic Outlook: Tackling Uncertainty, Reviving Growth, June 2025, Volume 2025/1
- Global Trade Outlook and Statistics, April 2025
