Domestic equity markets opened on a cautious note Friday, with benchmark indices trading flat ahead of the Reserve Bank of India’s monetary policy announcement. Investor sentiment remained subdued, even as select buying was observed in IT and PSU bank stocks during early trade.
At around 9:23 a.m., the BSE Sensex was down by 82.43 points, or 0.10 per cent, at 81,359.61. The NSE Nifty slipped 7.70 points, or 0.03 per cent, to 24,743.20.
The Nifty Bank index was marginally higher by 4.85 points at 55,765.70. The Nifty Midcap 100 gained 146.25 points, or 0.25 per cent, to trade at 58,449.25, while the Nifty Smallcap 100 rose 65.50 points, or 0.36 per cent, to 18,498.10.
Markets are closely watching the RBI’s Monetary Policy Committee (MPC) announcement, where a 25 basis points rate cut is widely expected and already priced in by investors.
Analysts suggest that the central bank’s commentary on growth and inflation outlook for FY26 will be a more decisive factor for market movement.
“If the inflation forecast is revised downward from 4 per cent, it could trigger a positive response in the markets,” said Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
On technical levels, analysts believe Nifty has immediate support at 24,500, followed by 24,400 and 24,300. Resistance levels are seen at 24,850, 24,900, and the key psychological mark of 25,000.
“A breach below 24,500 could trigger further selling pressure, while a breakout above 25,000 may open the door to fresh all-time highs,” said Mandar Bhojane, Equity Research Analyst at Choice Broking.
Meanwhile, the India VIX, which indicates market volatility, declined by 4.21 per cent to 15.08, suggesting reduced short-term volatility expectations. However, with the RBI policy decision due, analysts urge caution as market volatility may increase depending on the central bank’s guidance.
In the Sensex basket, top gainers included Bajaj Finserv, Tata Steel, IndusInd Bank, ITC, NTPC, Titan, and Eternal. On the other hand, Tata Motors, Bajaj Finance, ICICI Bank, HDFC Bank, and SBI were among the top laggards.
Across Asian markets, indices in Hong Kong, China, and Bangkok were trading in the red, while Japan was the only major market in positive territory.
In the U.S. markets, the Dow Jones Industrial Average closed 108 points lower at 42,319.74 in the previous session. The S&P 500 dropped 31.51 points to 5,939.30, while the Nasdaq Composite fell 162.04 points to 19,298.45.
On the institutional front, Foreign Institutional Investors (FIIs) were net sellers on June 5, offloading equities worth ₹208.47 crore. In contrast, Domestic Institutional Investors (DIIs) remained strong buyers with net purchases of ₹2,382.40 crore, offering support to the domestic markets.
-IANS