The Indian stock market closed in the red on Friday, June 5, 2026, with the BSE Sensex dropping 116 points and the NSE Nifty settling at 23,366. The decline came after the Reserve Bank of India's Monetary Policy Committee (MPC) announced its decision, which was largely in line with market expectations.
Market Performance
The Sensex opened lower and remained under pressure throughout the session, finally ending at 76,678, down 116 points or 0.15%. The broader Nifty50 index closed at 23,366, losing 38 points or 0.16%. The market breadth was negative, with 1,486 stocks advancing against 1,902 declining on the BSE.
Sectoral Trends
Among sectoral indices, the Nifty Bank index fell 0.5%, led by losses in major private sector banks. Auto stocks also witnessed selling pressure, with the Nifty Auto index declining 0.8%. On the positive side, IT and pharma stocks managed to stay afloat, with the Nifty IT index gaining 0.3% and Nifty Pharma rising 0.2%.
RBI MPC Impact
The RBI MPC kept the repo rate unchanged at 6.5%, maintaining its accommodative stance. The central bank also revised its GDP growth forecast for the current fiscal year to 7.2% from 7.0%, while inflation projection was raised to 5.1% from 4.8% due to rising food prices. Market participants were hoping for a more dovish tone, leading to some disappointment.
Top Gainers and Losers
- Top Gainers: HCL Technologies (up 1.8%), Sun Pharmaceutical (up 1.2%), Infosys (up 0.9%), TCS (up 0.7%), and Dr Reddy's (up 0.6%).
- Top Losers: Mahindra & Mahindra (down 2.1%), Maruti Suzuki (down 1.9%), Bajaj Finance (down 1.5%), ICICI Bank (down 1.2%), and HDFC Bank (down 0.9%).
Broader Markets
The broader markets underperformed the benchmarks, with the BSE Midcap index falling 0.4% and the BSE Smallcap index declining 0.5%. Volatility increased ahead of the weekly expiry.
Global cues were mixed, with Asian markets trading lower while European indices opened on a positive note. The US dollar index weakened against major currencies, while crude oil prices remained stable around $78 per barrel.
According to analysts, the market is expected to remain range-bound in the near term, with focus shifting to corporate earnings and global economic data. The RBI's decision to hold rates was widely anticipated, but the upward revision in inflation may keep the central bank cautious going forward.
