Nifty Slips Below 23,400, Sensex Falls 117 Points After RBI Holds Key Rate; Banks Cushion Downside 

Mumbai, June 5: Indian benchmark indices ended marginally lower on Friday in a volatile session as investors assessed the Reserve Bank of India’s monetary policy decision, with gains in banking stocks offset by weakness in information technology and metal counters. 

The BSE Sensex fell 116.67 points, or 0.16%, to close at 74,243.34, while the NSE Nifty 50 declined 49.85 points, or 0.21%, to settle at 23,366.70. Market breadth remained broadly balanced, with 1,966 stocks advancing against 2,049 declining shares, while 197 stocks ended unchanged. 

The RBI’s Monetary Policy Committee unanimously kept the repo rate unchanged at 5.25% and retained its neutral stance, while announcing a series of measures to support the rupee and attract foreign capital. The central bank also raised its inflation forecast and flagged risks to growth from an uncertain global environment and a potentially weak monsoon. 

IT, Metals Lead Declines 

Information technology stocks weighed heavily on the benchmarks, tracking overnight weakness in global technology shares following a selloff in semiconductor stocks in the United States. Heavyweights Wipro and Tata Consultancy Services (TCS) featured among the top losers on the Nifty. 

Sensex ended lower as weakness in IT continued even on policy day. Source: BSE 

 Metal stocks also came under pressure, with Hindalco Industries emerging as one of the worst-performing Nifty constituents. Weakness in commodity-linked counters reflected concerns over global growth and softer risk appetite across international markets. 

Other notable laggards included Trent and Coal India, contributing to the broader market’s subdued performance. 

Banks Provide Support 

Financial stocks helped limit losses after the RBI refrained from tightening monetary policy despite pressure on the rupee from elevated crude oil prices and foreign fund outflows. 

Private lenders Axis Bank and Bajaj Finance were among the top gainers, benefiting from expectations that stable interest rates will continue to support credit growth and borrowing activity. 

Media Shines, PSU Banks Advance 

Among sectoral indices, the Nifty Media index outperformed with a gain of 3.5%, aided by strong buying in broadcasting and entertainment stocks. PSU Banks, Realty, Consumer Durables and Healthcare indices also ended about 0.5% higher. 

Nifty 50 got support from financials after the central bank held key rate but that was not enough to lift the index above chaos. Source: NSE 

 In contrast, Energy, IT, Metal, Oil & Gas and Telecom indices declined between 0.5% and 1.5%, reflecting profit-booking and concerns over rising input costs amid higher crude oil prices. 

Among individual stocks, Adani Enterprises, Hindustan Unilever, Adani Ports, Bajaj Finance and Axis Bank led the gainers’ list. 

Broader Markets Mixed 

The broader market delivered a mixed performance. The Nifty Midcap index ended around 0.3% lower, while the Nifty Smallcap index closed largely unchanged, indicating selective participation outside frontline stocks. 

Going forward, investors are expected to monitor crude oil prices, developments in West Asia, the rupee’s trajectory and foreign institutional investor flows for further direction, while the RBI’s revised inflation and growth forecasts are likely to remain in focus. 

Source:

• NSE
• BSE