Closing Bell: Sensex Falls 117 Points, Nifty 50 Slips Below 23,400 Despite RBI Measures; Media Index Jumps 3.48%

Market Update at 04:04 PM: Indian equity benchmarks ended lower on Friday, June 5, as investors reacted to the Reserve Bank of India's monetary policy decision. While the central bank kept the key policy rate unchanged and maintained its "neutral" stance as widely expected, caution prevailed after the RBI raised its inflation forecast and lowered its economic growth projection for the current financial year.

The Nifty 50 opened 62 points lower and failed to hold on to early gains amid persistent selling pressure throughout the session. The benchmark index settled below the 23,400 mark, ending the day at 23,366.70, down 49.85 points or 0.21 per cent. The Sensex also closed in negative territory, declining 116.66 points or 0.16 per cent to finish at 74,243.35. In contrast, Bank Nifty extended its winning streak for a fourth consecutive session, rising 0.35 per cent, while India VIX, the market's fear gauge, remained largely stable.

The RBI retained the repo rate but revised its macroeconomic projections. The central bank increased its inflation estimate for FY27 to 5.1 per cent from 4.6 per cent while reducing its GDP growth forecast to 6.6 per cent from 6.9 per cent. Market participants viewed the rate pause as supportive for financial stocks and public sector banks, as it reduces the risk of higher funding costs, supports credit growth and allows lenders to continue benefiting from previous rate cuts.

The RBI also announced measures aimed at attracting foreign currency inflows and easing pressure on the rupee, which has been impacted by elevated crude oil prices and continued foreign capital outflows. Adding to the positive sentiment for debt markets, India exempted foreign institutional investors from capital gains Tax on interest earned from government securities. The move is expected to encourage foreign investments, support the rupee, lower bond yields and improve overall market sentiment.

Global oil prices remained elevated, with Brent crude futures trading near USD 95 per barrel on Friday. The commodity had fallen nearly 3 per cent in the previous session amid hopes that the U.S. and Iran could still reach a diplomatic solution to end the conflict and reopen the Strait of Hormuz.

Sectorally, eight of the eleven major indices ended in positive territory. Among broader markets, the Nifty Midcap 100 index declined 0.35 per cent, while the Nifty Smallcap 100 index managed to close 0.06 per cent higher. The Nifty Media index emerged as the top-performing sector, rising 3.48 per cent with eight of its ten constituents ending in the green. The index has now gained 5.75 per cent over the last two trading sessions. On the other hand, the Nifty Metal index was the worst-performing sector, falling 1.6 per cent and extending its losing streak to three consecutive sessions.

Among individual stocks, Rajesh Exports remained in focus and declined another 5 per cent after falling 5 per cent in the previous session. The weakness followed allegations by the market regulator that the jewellery company inflated revenue through unverified overseas entities. Rajesh Exports has denied the allegations.

ICICI Bank contributed the most to limiting losses in the Nifty 50, adding 16.14 points to the index. Axis Bank followed with a contribution of 11.83 points, while Bajaj Finance added 8.67 points. On the downside, Trent emerged as the biggest drag on the benchmark, weighing on the index by 106.53 points. HDFC Bank and Reliance Industries also pressured the market, dragging the index lower by 23.73 points and 18.60 points, respectively.

Market breadth on the NSE remained slightly negative. Of the 3,411 stocks traded during the session, 1,623 advanced, 1,694 declined and 94 remained unchanged. A total of 99 stocks touched their 52-week highs, while 43 stocks hit their 52-week lows. Additionally, 111 stocks were locked in Upper Circuits, whereas 93 stocks were locked in Lower Circuits.

Market Update at 2:29 PM: Benchmark equity indices Sensex and Nifty 50 traded lower on Friday as investors assessed the outcome of the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) meeting. The central bank unanimously decided to keep the policy repo rate unchanged at 5.25 per cent while maintaining its neutral policy stance, citing heightened global uncertainties.

At around 2:00 PM, the Nifty 50 declined 91.05 points, or 0.39 per cent, to 23,299.20, while the Sensex fell 218.29 points, or 0.29 per cent, to 74,141.72.

In its policy announcement, RBI Governor Sanjay Malhotra said the government has exempted capital gains tax on foreign investments in the government securities market. The move is aimed at enhancing the attractiveness of Indian debt markets for overseas investors.

The central bank also unveiled several measures to encourage foreign capital inflows into domestic financial markets. These include an increase in the investment limit for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) in equities, along with an expansion of the universe of government securities eligible under the Fully Accessible Route (FAR).

Broader market indices also remained under pressure. The Nifty MidCap index was down 0.51 per cent, while the Nifty SmallCap index slipped 0.32 per cent.

Despite the overall weakness in the market, rate-sensitive sectors witnessed buying interest following the RBI's policy decision. The Nifty PSU Bank, Nifty Financial Services, and Nifty Realty indices outperformed the broader market.

On the other hand, sectors such as metals, information technology, and fast-moving consumer goods faced selling pressure. The Nifty Metal, Nifty IT, and Nifty FMCG indices traded lower during the session.

Market participants continue to monitor the impact of the RBI’s policy measures and the potential benefits of increased foreign participation in India's financial markets amid an uncertain global economic environment.

Market Update at 12:14 PM: Benchmark equity indices traded mixed on Friday as investors assessed the outcome of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting. While the Sensex edged higher, the Nifty 50 remained largely unchanged after the central bank unanimously decided to keep the policy repo rate unchanged at 5.25 per cent and maintain its neutral policy stance amid rising global uncertainties.

At around 11:30 AM, the Sensex was up 37.19 points, or 0.05 per cent, at 74,397.20. The Nifty 50, meanwhile, slipped 10.10 points, or 0.04 per cent, to 23,410.85.

In a significant move aimed at attracting foreign capital, RBI Governor Sanjay Malhotra announced that the government has exempted capital gains tax on foreign investments in the government securities market. The central bank also unveiled a series of measures to encourage foreign fund inflows into domestic financial markets.

Among the key initiatives, the investment limit in equities for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) has been increased. Additionally, the universe of government securities eligible under the Fully Accessible Route (FAR) has been expanded, providing overseas investors with greater access to India's debt market.

Rate-sensitive sectors responded positively to the policy announcements. The Nifty PSU Bank, Nifty Financial Services, and Nifty Realty indices emerged as the top performers during the session. On the other hand, the Nifty Metal, Nifty IT, and Nifty FMCG indices traded in negative territory.

The RBI also left the Standing Deposit Facility (SDF) rate unchanged at 5.00 per cent. The Marginal Standing Facility (MSF) rate and the Bank Rate were maintained at 5.50 per cent.

On the macroeconomic front, the central bank projected India's GDP growth at 6.6 per cent for FY26. Commenting on inflation, Governor Malhotra said price pressures remain below the RBI's target despite global shocks. However, the central bank revised its inflation forecast upward and now expects inflation to average 5.1 per cent in FY27.

The MPC's decision to maintain rates, coupled with measures to attract foreign investments, provided support to financial and realty stocks, helping benchmark indices hold steady despite weakness in select sectors.

Market Update at 09:35 AM: Indian equity benchmark indices traded in positive territory during the early session on Friday as investors remained focused on the outcome of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting.

The Nifty 50 gained 42.80 points, or 0.18 per cent, to trade at 23,459.40, while the Sensex advanced 193.76 points, or 0.26 per cent, to 74,553.77 at around 9:17 AM.

Market participants are closely tracking the RBI's policy announcement, with the central bank widely expected to keep the repo rate unchanged at 5.25 per cent. Investors will also watch RBI Governor Sanjay Malhotra's commentary for indications on the country's inflation outlook and economic growth trajectory.

Among the Nifty 50 constituents, Tech Mahindra, HDFC Life Insurance Company, and Mahindra & Mahindra emerged as the Top Gainers in early trade, supporting the benchmark indices.

The broader market also witnessed buying interest. The Nifty MidCap index was up 0.43 per cent, while the Nifty SmallCap index gained 0.39 per cent, reflecting positive sentiment beyond Large-Cap stocks.

On the sectoral front, the Nifty Realty and Nifty Media indices outperformed the broader market, whereas the Nifty Metal and Nifty Oil & Gas indices lagged and traded under pressure.

Investors are expected to remain cautious throughout the session as they assess the RBI's policy stance and its implications for interest rates, inflation, and economic growth.

Pre-Market Update at 7:50 AM: The Indian stock market is expected to open flat to slightly cautious on Friday, June 5, as investors await the Reserve Bank of India (RBI) monetary policy decision amid mixed global cues. Gift Nifty was trading near 23,531, around 7 points below the previous close of Nifty futures, indicating a muted start for domestic equities.

Market participants will closely monitor the RBI's policy announcement later in the day. The Monetary Policy Committee (MPC), headed by RBI Governor Sanjay Malhotra, is widely expected to keep the repo rate unchanged. Investors will also track the central bank's commentary on inflation, liquidity, crude oil prices and the rupee for indications on the future policy path.

Investor sentiment remains sensitive to developments in the Middle East. Reports suggest former U.S. President Donald Trump has shelved a proposed military operation targeting Iran's enriched uranium facilities. Meanwhile, the Israel-Lebanon ceasefire collapsed shortly after being announced, with fresh military action reported from both sides.

Fresh data showed U.S. unemployment claims rose more than expected. Initial jobless claims increased by 13,000 to 225,000 for the week ended May 30, above economists' estimates of 213,000. The four-week moving average also climbed to 214,750.

Gold prices edged lower and were on track for a weekly decline. Spot gold fell 0.3 per cent to USD 4,462.22 per ounce and is down around 1.6 per cent this week. Spot silver declined 0.6 per cent to USD 73.45 per ounce.

Oil prices remained largely stable after sharp losses in the previous session. Brent crude traded at USD 95.24 per barrel, down 0.22 per cent, while U.S. West Texas Intermediate (WTI) crude eased 0.11 per cent to USD 92.94 per barrel.

The U.S. dollar remained firm amid safe-haven demand driven by geopolitical uncertainty. The dollar index stood at 99.434 and was headed for a weekly gain of about 0.5 per cent.

Derivatives positioning suggests a range-bound market. The Put-Call Ratio (PCR) stands at 0.95. Significant Put open interest remains concentrated at the 23,000 strike, indicating support, while the highest Call open interest among near out-of-the-money strikes is at 24,000, making the 23,500 zone a key resistance area.

Nifty 50 continues to trade within a crucial consolidation range. Immediate support is placed between 23,150 and 23,250. A breakdown below this zone could trigger a deeper correction towards 22,700.

On the upside, resistance is seen in the 23,547-23,556 zone, which coincides with the 8-day exponential moving average and the neckline of a double-bottom pattern. A decisive close above this range could open the door for a move towards the 50-day moving average at 23,678 and the 20-day moving average at 23,691. A breakout or breakdown from the current range may result in a sharp 200-300 point move.

Among stocks in focus, Titan Company management reiterated its retail market outlook of 8-9 per cent CAGR through FY30. Aurobindo Pharma received final approval from the U.S. FDA to manufacture and market Tofacitinib tablets used for arthritis treatment. Groww witnessed a block deal where Friale Fund sold 1.1 crore shares at Rs 185.5 per share, with participation from institutional investors including Goldman Sachs Bank EU.

Ola Electric's qualified institutional placement (QIP) issue closes today after raising Rs 780 crore through the allotment of 21.8 crore shares at Rs 35.86 apiece. ICICI Prudential Life Insurance announced its AGM schedule and released its FY26 integrated annual report. InterGlobe Aviation temporarily suspended services to six international destinations as part of network optimisation efforts.

JSW Steel highlighted its focus on product development, energy efficiency and cost reduction, while the BPSL steel business transaction is expected to conclude by the third quarter. Premier Energies is executing a Rs 12,500 crore capital expenditure programme focused on Solar manufacturing, battery storage and clean-energy expansion. ACME Solar Holdings closed its QIP issue with the allotment of 10 crore shares at Rs 279.50 each.

United Spirits said operations at its Hyderabad manufacturing facility are expected to cease by August 31. The unit contributed Rs 599 crore in revenue during FY26.

Amber Enterprises India and Kaynes Technologies remain under the futures and options (F&O) ban list for June 5.

Foreign Institutional Investors (FIIs) were net sellers on June 4, offloading equities worth Rs 4,447.06 crore. Domestic Institutional Investors (DIIs) purchased shares worth Rs 4,360.14 crore during the session.

Indian benchmark indices ended Thursday's volatile session largely unchanged. The Sensex gained 13.84 points to close at 74,360.01, while the Nifty 50 rose 10.95 points to settle at 23,416.55.

U.S. markets ended mixed on Thursday. The Dow Jones Industrial Average surged 874.86 points, or 1.73 per cent, to a record close of 51,561.93. The S&P 500 gained 0.41 per cent to 7,584.31, while the Nasdaq Composite slipped 0.09 per cent to 26,830.96.

Among major technology stocks, Nvidia gained 1.82 per cent, Amazon rose 1.51 per cent, Apple added 0.31 per cent and Alphabet climbed 3.82 per cent. However, AMD declined 3.56 per cent, Broadcom fell 12.59 per cent, Micron Technology dropped 7.74 per cent, Qualcomm lost 2.98 per cent and Tesla slipped 1.24 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.

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