Stock Market LIVE: Sensex down 200 pts; Nifty tests 23,300; defence stocks rise up to 12%

Market News Today: The Reserve Bank of India’s MPC on June 5, 2026, unanimously kept the policy repo rate unchanged at 5.25 per cent with a neutral stance. Governor Sanjay Malhotra highlighted the Indian economy’s strong and resilient fundamentals amid external challenges like West Asia tensions, elevated crude oil prices, supply disruptions, and rupee pressure. The central bank revised the financial year 2027 (FY27) GDP growth projection downward to 6.6 per cent from 6.9 per cent and raised the CPI inflation forecast to around 5.1 per cent with upside risks, while noting limited domestic pass-through so far. 

 

Malhotra emphasised a data-dependent approach, vigilance on inflation, monitoring of liquidity and rupee stability, and confidence in domestic consumption, services, agriculture, and MSMEs to withstand shocks with minimal pain.

 

 

The government concurrently announced major tax relief for FIIs/FPIs in G-Secs, including scrapping capital gains tax (LTCG) and potentially removing/reducing the 20 per cent withholding tax on interest income, aimed at boosting foreign inflows, supporting rupee stability, and improving debt market liquidity.

 

 

Equity markets reacted with a mild positive relief rally as the widely expected rate hold removed uncertainty. Nifty 50 and Sensex rose modestly (around 0.2-0.4 per cent) post-announcement, with support in rate-sensitive sectors like banking, NBFCs, real estate, and autos due to stable borrowing costs. The FII tax benefits added a positive catalyst for broader foreign sentiment and liquidity. Overall, the outcome supports a neutral-to-positive near-term outlook with range-bound trading, though volatility may persist based on global cues, inflation data, and the Governor’s full commentary tone. Long-term, policy stability and tax measures could aid valuations if external risks are managed.

 

 

 

View by: Santosh Meena, head, Research at swastika investmart

Nifty50 LIVE: Bajaj Electricals shares gained 4 per cent on BSE, logging an intra-day high of ₹316.6 per share. The buying on the counter came after the company announced its entry into the cables category under its lighting solutions segment. Read more. 

Market LIVE: Hindustan Zinc, National Aluminium Company, and Vedanta were the top losers in the Nifty Metal index. 

Nifty Metal Heatmap 

Stock Market LIVE: Reserve Bank Governor Sanjay Malhotra on Friday said the forex reserve stood at a healthy $682.3 billion, adequate to provide import cover for about 11 months.

 

Sensex LIVE: The Reserve Bank of India (RBI) maintained the status quo in its latest monetary policy meeting by unanimously keeping the repo rate unchanged at 5.25 per cent and retaining its neutral policy stance. The decision reflects the central bank’s cautious approach at a time when global economic uncertainties have increased significantly. Read more. 

Stock Market LIVE: The June monetary policy is a bold statement that addresses the present macro concerns even while striving to keep the resilient growth of the economy intact, says VK Vijayakumar. Read more.