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Benchmark indices Sensex and Nifty ended little connected Friday (June 5, 2026) amid profit-taking aft the Reserve Bank of India (RBI) lowered its maturation expectations for the existent fiscal twelvemonth and forecast ostentation to emergence to 5.1%.
Also adding to the bearish inclination successful equities were overseas money outflows, geopolitical uncertainties and a anemic inclination successful Asian markets.
The 30-share BSE Sensex declined 116.67 points, oregon 0.16%, to settee astatine 74,243.34. During the day, it deed a precocious of 74,717.57 and a debased of 73,988.75, gyrating 728.82 points. The 50-share NSE Nifty dipped 49.85 points, oregon 0.21%, to extremity astatine 23,366.70.
The RBI connected Friday (June 5, 2026) kept its benchmark repo complaint unchanged astatine 5.25%, arsenic expected, and announced a raft of measures to pull overseas capital and enactment the rupee amid increasing risks to maturation and ostentation from the prolonged West Asia conflict, elevated vigor prices and planetary supply-chain disruptions.
To enactment the rupee, the measures included scrapping taxes connected involvement income and superior gains for eligible overseas investors successful authorities securities, offering concessional presumption for foreign-currency deposits from non-resident Indians and subsidising hedging costs for prime offshore borrowings.
The Monetary Policy Committee (MPC) unanimously voted to permission the argumentation repo complaint unchanged astatine 5.25%, and proceed with its "neutral" stance. From the 30-Sensex firms, Trent, Tata Consultancy Services, Tata Steel, NTPC, HCL Tech, and Bharti Airtel were among the biggest laggards.
Hindustan Unilever, Axis Bank, Adani Ports, and Bajaj Finance were among the biggest gainers.
The RBI lowered its maturation expectations for the existent fiscal year, projecting existent GDP maturation astatine 6.6% successful 2026-27, beneath the 6.9% April forecast. The projection is besides little than 7.6% estimated for 2025-26.
It forecast ostentation to emergence to 5.1% successful 2026-27, with terms pressures expected to highest astatine 5.9% successful the 3rd 4th earlier easing.
"Domestic equities closed level arsenic the monetary argumentation result aligned with expectations, portion supportive measures announced by the RBI politician helped fortify the rupee. However, the downward revision successful maturation forecasts and a calibrated ostentation outlook prompted nett booking arsenic investors reassessed near-term request and net prospects," Vinod Nair, Head of Research, Geojit Investments Limited, said.
The authorities said it would scrap taxes connected involvement income and superior gains for eligible overseas investors successful authorities securities from April 1, 2026, portion the RBI broadened the beingness of sovereign bonds disposable nether its unrestricted overseas concern route.
The cardinal slope besides announced concessional forex swaps for state-run firms raising overseas indebtedness and said it would carnivore hedging costs connected caller three-to five-year FCNR(B) deposits until September 30 to pull dollar inflows from non-resident Indians.
Together, the measures are aimed astatine shoring up the rupee which has plunged implicit 6 per cent this twelvemonth connected war-driven surge successful crude prices and grounds overseas money outflows.
Alongside the argumentation decision, the RBI and the authorities announced a wide bundle of measures to pull overseas superior and enactment the Indian rupee amid persistent FPI outflows, Amar Ambani, Executive Director and Head Institutional Equities Research, YES Securities, said.
Brent crude, the planetary lipid benchmark, dipped 0.11% to USD 94.93 per barrel.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite scale and Hong Kong's Hang Seng scale ended lower. The Kospi sank 5.5%.
Markets successful Europe were quoting mostly higher. U.S. markets ended mostly higher connected Thursday (June 4, 2026).
"Indian equity markets ended connected a mildly antagonistic note, reflecting a deficiency of condemnation among investors amid mixed planetary signals and persistent home concerns. Although the Nifty opened higher, gains proved short-lived arsenic selling unit emerged done the day, highlighting the market's continued sensitivity to outer risks and macroeconomic uncertainties," Ponmudi R, CEO of Enrich Money, an online trading and wealthiness tech firm, said.
Globally, Israel-Lebanon's latest ceasefire showed small signs of holding arsenic Hezbollah rejected the presumption and Israel signalled its violative would continue, putting further unit connected the broader US-Iran bid process arsenic the Lebanon ceasefire had been seen arsenic a cardinal measurement toward removing a large obstacle betwixt Washington and Tehran, helium added.
Foreign Institutional Investors (FIIs) offloaded equities worthy ₹4,447.06 crore connected Thursday (June 4, 2026), according to speech data.
On Thursday (June 4, 2026) the Sensex went up marginally by 13.84 points, oregon 0.02%, to settee astatine 74,360.01. The Nifty eked retired a marginal summation of 10.95 points, oregon 0.05%, to extremity astatine 23,416.55.
