Opening Bell: Nifty 50, Sensex Trade Higher Ahead of RBI MPC Decision; Realty and Media Stocks Lead

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.

What’s your strategy for today’s volatile market? Share in the comments!