Market Wrap, 5 June 2026: Sensex, Nifty Slip As RBI Holds Repo Rate Amid Global Uncertainty

Sensex and Nifty 50 traded lower at the end of Friday's trade. This was after the Reserve Bank of India's Monetary Policy Committee (MPC) unanimously decided to keep the policy repo rate unchanged at 5.25%. The RBI retained its neutral policy stance.

The policy outcome came as market participants assessed the central bank's view on inflation, growth and liquidity conditions amid increasing uncertainty in the global environment.

The MPC cited rising global uncertainties while announcing its decision to leave rates unchanged. The move signalled a wait-and-watch approach at a time when investors were looking for fresh cues on the future path of monetary policy. At the closing bell:

• Nifty 50 stood at 23,366.70, down 0.21%

• Sensex stood at 74,243.34, down 0.16%

Weakening Of Broader Markets

Broader markets also weakened alongside the frontline indices. At the end of Friday’s trade, the:

• Nifty Midcap 100 index declined 0.35%

• Nifty Smallcap 100 index fell 0.06%

The decline across segments indicated cautious sentiment beyond large-cap stocks as traders evaluated the implications of the policy decision.

Other Major Headlines

Some of the other major headlines of the day include:

• The Defence Ministry has doubled the financial powers of field commanders, with the cap for army commanders being raised from ₹30 crore to ₹100 crore.

• Maruti Suzuki India Ltd plans to invest ₹925 crore by FY 2030-31 towards green energy initiatives, which include a couple of biogas projects.

• The Central Bank of India aims to mobilise over ₹3,500 crore from the recovery of bad loans to enhance its balance sheet during FY27.

• Hindustan Zinc shares tumbled nearly 5% in early trade after reports emerged that the government is planning to sell as much as 2% stake in it for up to ₹5,000 crore.

• Tata Steel shares dropped almost 3% in early trade following a fire at the company’s plant at Port Talbot in the UK.

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Gold And Silver Watch

Gold and silver prices saw a sharp decline in early trade on the Multi-Commodity Exchange of India (MCX) amid escalating tensions in the Middle East.

At 15:41, Gold June futures on the MCX stood at ₹1,58,064 per 10 grams, down 0.93%. July silver futures during the same time stood at ₹2,59,622 per kg, down 1.95%.

Markets are likely to take cues from the detailed interpretation of the RBI's policy communication, movement in global equities and institutional investor activity. Traders will also watch interest rate-sensitive sectors, broader market participation and any fresh signals on inflation and growth that could shape expectations around future monetary policy decisions.

Sources:

Moneycontrol

The Economic Times