Sensex, Nifty Decline in Volatile Trading Following RBI Policy Statement

Indian Benchmark Indices End in Marginal Losses as RBI Maintains Repo Rate

The Indian benchmark indices, Sensex and Nifty, closed with marginal losses on June 5, following the Reserve Bank of India's (RBI) decision to maintain the repo rate at 5.25% and retain a 'neutral' stance. This move came as the RBI lowered its FY27 GDP growth forecast to 6.6% from around 6.9%, while raising its inflation forecast to approximately 5.1%.

At the close of the session, the Sensex was down 116.67 points or 0.16 percent at 74,243.34, and the Nifty was down 49.85 points or 0.21 percent at 23,366.70. For the week, the BSE Sensex and Nifty50 indices shed 0.7 percent each.

Market Reaction

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The Indian rupee recorded a strong recovery on June 5, closing 85 paise higher at 94.94 per US dollar against the previous close of 95.79. However, the broader market showed a mixed trend, with the Nifty Midcap Index ending about 0.3% lower and the Nifty Smallcap Index closing largely flat.

Among the Nifty constituents, Hindalco Industries, Wipro, Trent, Coal India, and TCS were the top losers. On the positive side, Adani Enterprises, Hindustan Unilever, Adani Ports, Bajaj Finance, and Axis Bank emerged as the top gainers. Sectorally, the Media index outperformed with a gain of 3.5%, while PSU Banks, Realty, Consumer Durables, and Healthcare indices advanced about 0.5% each.

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Gainers and Losers

More than 120 stocks touched their 52-week high on the BSE, including Adani Energy, Data Patterns, Apar Industries, Adani Enterprises, Himadri Speciality, AIA Engineering, Vodafone Idea, RBL Bank, Syrma SGS, Laurus Labs, ACME Solar, CG Power, Cemindia Project, among others. Among individual stocks, Bluspring Enterprises surged 10% after securing a contract worth Rs 2,049.8 crore. Lupin advanced following USFDA approval for its ranibizumab product, while Aurobindo Pharma added 1.5% after receiving final USFDA approval for Tofacitinib Tablets.

Outlook for June 8

According to Rupak De, Senior Technical Analyst at LKP Securities, the index has been oscillating within a defined range as it absorbs the RBI policy announcement. Sentiment continues to remain weak, with the index sustaining below its critical moving averages. The RSI also remains weak, indicating a lack of positive momentum. In the short term, the index is likely to consolidate within the 23,300–23,500 range. A decisive breakout above 23,500 could trigger a rally towards 25,700 and higher, while a breach below the 23,300 support level may lead to a sharp correction.