The Prime Daily: 05 June 2026

By Prime Research | Last Modified: Jun 5, 2026 09:57 AM IST

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All Eyes on RBI’s MPC

The Dow rose 1.7% to a record close of 51,561.93 yesterday, driven by a rotation into blue-chip healthcare and financial stocks. The rally came even as the Nasdaq slipped, signalling a shift in market leadership away from large-cap technology names.

Broadcom tumbled 16% after its second-quarter revenue of $22.2 billion — a 48% year-over-year increase failed to clear the highest investor expectations, with forward guidance seen as merely affirming rather than exceeding the bar. The sell-off in the broader semiconductor sector pulled Micron Technology down 7.7%, ending the S&P 500’s seven-day winning streak and leaving the index with a 0.74% decline.

The 10-year Treasury yield retreated to 4.475%, easing pressure on equity valuations even as broader risk sentiment remained fragile.

Cryptocurrency markets bore some of the sharpest losses. Bitcoin fell to around $61,300 at its session low — its weakest level since February 2026 — before recovering slightly to trade near $62,777, still down more than 14% over the past week and 22.7% below its four-month high.

The decline wiped out over $600 billion in total crypto market value and triggered more than $1.44 billion in liquidations over 24 hours.

Asian markets extended the losses on Friday, with technology shares bearing the brunt of the pressure after Broadcom’s results accelerated a rotation out of artificial intelligence-linked names and into more defensive sectors. South Korea led regional declines, with the Kospi falling 4.11% as the overnight Wall Street tech selloff rippled through Asian markets.

The Reserve Bank of India (RBI) will unveil its monetary policy decision today after the Monetary Policy Committee (MPC) wrapped up its three-day deliberations. Markets overwhelmingly expect the central bank to keep the repo rate unchanged at 5.25 per cent, although a minority of economists believe a 25-basis-point hike remains a possibility amid sustained weakness in the rupee and mounting inflation risks.

The market will focus on how the RBI communicates the impending upturn in inflation amid downside risks to growth. In this context, look for revisions to its inflation and growth projections. Another topic to focus on is the RBI’s measures regarding the INR.

The Centre will release the January-March quarter’s GDP figures for FY26, along with the full year’s growth numbers, today. The GDP data for the full year will be released with the new base year 2022-23. Economists are projecting the full year’s (FY26) figure to be 7.4 per cent, 20 basis points lower than the numbers estimated by the Second Advance Estimates.

The Indian rupee extended its losing streak for a third straight session, slipping 8 paise to close at 95.78 against the US dollar. Despite softer crude oil prices and a weaker dollar against major peers, the currency remained under pressure from strong importer demand and continued foreign fund outflows ahead of tomorrow’s RBI policy announcement.

After opening lower on weak global cues, the Nifty traded in a 200-point range from the intraday low and finished in the green with a 10-point gain at 23,416.

Nifty continues to trade below key moving averages, keeping the medium-term downtrend intact unless a decisive upside breakout emerges from current levels. For short-term support and resistance, remain placed at 23,151 and 23,800, respectively.

Indian markets are set to open mildly higher, with investors looking to the Reserve Bank of India’s policy decision later today for further direction.

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