Market Midday, 5 June 2026: Sensex, Nifty Gain As RBI Holds Repo Rate At 5.25%, Keeps Neutral Stance

Benchmark equity indices gained on Friday after the Reserve Bank of India’s Monetary Policy Committee (MPC) unanimously decided to keep the policy repo rate unchanged at 5.25% and retained its neutral policy stance. At 12:31 pm:

• The Sensex was up 0.13%

• The Nifty 50 was up 0.025%

Investors also reacted to a series of measures aimed at attracting foreign capital into domestic financial markets. RBI Governor Sanjay Malhotra said in the policy statement that the government has exempted capital gains taxes on foreign investments in government securities.

The RBI also announced steps to improve foreign participation in Indian markets. These include a higher investment limit in equities for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs), along with an expansion of the universe of government securities available under the Fully Accessible Route (FAR).

Rate-Sensitive Sectors Outperformed

Rate-sensitive sectors outperformed after the policy announcement. The Nifty PSU Bank, Nifty Financial Services and Nifty Realty were in the positive territory.

Investors appeared to favour banking and real estate counters after the RBI maintained the status quo on interest rates. However, a decline was witnessed in Nifty IT, Nifty Metal and Nifty FMCG.

RBI MPC: Major Highlights

Some of the major highlights, apart from the repo rate being unchanged at 5.25%, from RBI’s MPC meet are:

• Standing deposit facility rate stands at 5%

• Marginal standing facility rate stands at 5.5%

• Projection of India’s GDP growth at 6.6% for FY26

Top Stocks On Nifty 50

At 12:33 pm, the top five stocks on the Nifty 50 index were:

• Bajaj Finance Ltd

• Adani Enterprises Ltd

• Adani Ports & Special Economic Zone Ltd

• SBI Life Insurance Company Ltd

• HDFC Life Insurance Company Ltd

Stock-Specific Action

• Rajesh Exports shares hit a 5% lower circuit on the second consecutive day after SEBI issued an interim order against the company and its promoter over financial irregularities.

• InterGlobe Aviation shares fell over 1% in early trade after the company suspended flights to six countries.

• Juniper Hotels shares rallied above 7% in early trade after the company announced an acquisition update.

• Wipro shares fell over 4% in early trade on the company's share buyback record date today.

Also, the following stocks, along with 30 others, are likely to take centre-stage next week (8 June to 12 June) following dividend announcements to their shareholders:

• Adani Enterprises

• Infosys

• Tata Elxsi

• Inox India

• Tata Chemicals

• Adani Ports & Special Economic Zone

• Trent

• Tata Motors Commercial Vehicles

• Tata Investment Corporation

Also Read - Eicher Motors Gets ₹1.64 Crore Customs Duty Demand Order; Company Plans To Appeal

Afternoon Trade Outlook

Market participants are likely to remain focused on the detailed commentary from the RBI and the response of foreign investors to the latest measures. Banking, financial and realty stocks may continue to remain in focus through the second half of the session, while investors will also track global market cues and currency movements for further direction.

Sources:

Business Standard

The Economic Times