Ahead of the RBI monetary policy review outcome later today (June 6, 2025) in the backdrop of benign macros, can Bank Nifty scale a new all-time high after hitting a new peak earlier this week. Nonetheless, the high beta index succumbed to profit booking and then after saw mild gains for two straight sessions.

In the previous session on Thursday, the index closed with gains of 0.15 per cent at 55,760.85.

Overall, while the markets are likely discounting a 25 basis point rate cut as the macros largely have turned quiet favourable including inflation which has come below RBI's targeted level and good expectations around monsoon.

Nonetheless, in a case if RBI's Governor Sanjay Malhotra if he resorts to a 50 basis points repo rate cut - the Street may likely rejoice the move. Repo rate is the key policy rate at which RBI lends money to commercial banks in India.

Zee Business Managing Editor held that 4 reasons can RBI can resort to a 0.5 per cent rate cut due to the following 4 reasons:

1. Inflation remains under control

2. Expecation of good monsoon

3. To boost credit growth which is seeing moderate growth, and

4. For taking advantage amid global uncertainties.

Singhvi said that Bank Nifty is just 400 points away from life high and in case rate cut to the tune of 0.5 per cent is effected, Bank Nifty will gear up to hit a new high. And in such a case, the market momentum will be further boosted and then the high beta index will rise further more and the length of the gains will be more.

And in this backdrop, PSU Banks as well as NBFC shares may see good gains.

Further, he adds that in a case if profit booking is seen after the policy, then Bank Nifty will find support between 54,800-55,000. 

Singhvi added for breaking the rangebound move in Nifty, Bank Nifty will take lead. And there is a high possibility that Nifty will break this range either today or next week, he added.