Sensex, Nifty end lower after RBI policy; defence stocks surge as Paras Defence, Ideaforge hit 52-week highs. Photo: AI
The stock market on Friday, June 5, closed marginally lower after a volatile trading session. Investors assessed the Reserve Bank of India’s latest economic projections alongside measures. The announcements were made to boost the foreign capital inflows and support the money. While benchmark indices, including NIFTY 50 and Sensex, ended in the red, defence stocks emerged as standout performers. Shares of Paras Defence and Space Technologies, Ideaforge Technology, Astra Microwave Products, Data Patterns (India), and Adani Enterprises, constituents of the BSE India Defence Index, touched their respective 52-week highs during intra-day trading. Despite recovering from intraday swings, both benchmark indices ended lower at the end of the trading session. On a weekly basis, the Nifty 50 fell 0.8 per cent, extending its losing streak to a second straight week. The Sensex also ended lower for the second consecutive week.
Nifty 50: declined 49.85 points, or 0.21 per cent, to settle at 23,366.70.
BSE Sensex: fell 116.67 points, or 0.16 per cent, closed at 74,243.34.
The Reserve Bank of India (RBI) kept the key repo rate unchanged at 5.25 per cent. However, the central bank adopted a more cautious tone on the economy in view of risks from the West Asia conflict.
The RBI revised its FY27 growth forecast downward to 6.6 per cent from the 6.9 per cent estimate announced in the April monetary policy review. At the same time, it raised its inflation projection to 5.1 per cent from 4.6 per cent, triggering concerns over the possibility of stagflationary pressures.
RBI Governor Sanjay Malhotra said in his policy statement that “monetary policy has turned more cautious” as the global economic outlook remains clouded by the ongoing “geopolitical impasse” in the Middle East.
Geopolitical developments in the Middle East remained a major source of uncertainty for investors. Signals from the region continue to be mixed, with prospects of a significant breakthrough between the United States and Iran appearing limited as core differences remain unresolved. Although US President Donald Trump has indicated reluctance to escalate the situation into a full-scale war and has signalled support for maintaining the ceasefire unless US forces are directly targeted, diplomatic progress has remained limited.
Among major stocks, Hindustan Unilever emerged as the top gainer, rising 2.10 per cent.
Top Gainers
HINDUNILVR: +2.10%
ADANIPORTS: +1.98%
AXISBANK: +1.86%
BAJFINANCE: +1.79%
ETERNAL: +1.06%
TITAN: +0.90%
M&M: +0.83%
ICICIBANK: +0.74%
L&T: +0.52%
SUNPHARMA: +0.48%
ASIANPAINT: +0.45%
POWERGRID: +0.30%
ITC: +0.25%
Stocks Closing Marginally Lower
INFY: -0.05%
MARUTI: -0.12%
SBIN: -0.26%
TECHM: -0.39%
BAJAJFINSV: -0.40%
BEL: -0.46%
ULTRACEMCO: -0.73%
KOTAKBANK: -0.79%
HDFCBANK: -0.80%
INDIGO: -0.86%
RELIANCE: -0.90%
HCLTECH: -1.07%
BHARTIARTL: -1.12%
NTPC: -1.46%
Top Losers
TRENT: -2.37%
TCS: -1.90%
TATASTEEL: -1.78%
Also Read: Stock Market Today, June 5 | Opening Bell: Sensex, Nifty Open In Green; Can RBI Fuel A Bigger Rally?
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
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