The volatility in the Indian stock market persisted during Friday’s session, 5 June, even as the RBI announced various measures to ease pressure on the rupee while keeping interest rates unchanged for the third straight meeting, in line with expectations.
Although the Nifty 50 recovered from the day’s low, it still ended the trade with a 0.21% cut at 23,362, while the Sensex closed 0.13% lower at the 74,261 level. The broader market also mirrored the weak trend, as both the Nifty Midcap 100 and Nifty Smallcap 100 indices ended in the red.
Sectoral performance was mixed, with Nifty Media leading the gainers’ list by rallying 3.75%. It was followed by Nifty Realty, Nifty PSU Bank, Nifty Pharma, and Nifty FMCG, all of which closed with gains between 0.24% and 0.46%.
On the flip side, Nifty Metal and Nifty IT were among the top laggards, falling 1.58% and 1.1%, respectively.
In terms of weekly performance, the Nifty 50 lost 0.8% of its value, extending its losing streak to a second straight week, while the Sensex also closed lower for the second consecutive week.
Despite sustained selling by FPIs, the losses remained contained as domestic institutional investors absorbed most of the overseas outflows.
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI), led by Governor Sanjay Malhotra, unanimously decided to keep the policy repo rate unchanged at 5.25 percent while continuing with its neutral stance.
The Reserve Bank of India also raised its inflation projection for the ongoing financial year to 5.1% from 4.6% and trimmed its GDP growth expectation to 6.6% from 6.9%. It announced steps to attract dollar inflows and ease pressure on the rupee from rising crude oil prices triggered by the Middle East war and record foreign outflows.
Source link