Weekly market update, Jun 05, 2026

Indian equity markets closed the week lower on mixed global cues, and after the RBI MPC’s announcement, on the back of downward revision in growth forecasts and hiked inflation projections. This overpowered the government’s introduction of a retrospective tax exemption for Foreign Institutional Investors (FIIs) earning income from government securities. Key benchmark indices BSE Sensex and Nifty 50 lost 0.71% and 0.77% respectively. Broader markets indices, the BSE 150 Midcap lost 1.24% and BSE 250 Smallcap rose 0.21% respectively. On the BSE sectoral front, it was mixed. BSE Bankex was the major gainer, up 0.57% followed by Healthcare, up 0.22% and IT, up 0.20%. Fast Moving Consumer Goods was the major loser, down 1.85% followed by Metal, down 1.26%.

Looking ahead, Domestic markets are expected to remain range-bound in the coming week as investors navigate a complex mix of domestic policy support and challenging global cues. While the RBI’s latest measures to attract foreign capital and the government’s tax relief for foreign investors in government securities have improved sentiment, concerns around elevated crude oil prices, the ongoing West Asia conflict, foreign institutional investor (FII) flows and the progress of the monsoon continue to keep market participants cautious.

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