Share Markets Fall After MPC Decision, Sensex Decline To 74,285, Nifty Tests 23,400

Investor focus remains firmly on the Reserve Bank of India’s Monetary Policy Committee (MPC) meeting, with the policy announcement scheduled for Friday morning.

For India, elevated crude prices remain a major concern due to their impact on inflation, fiscal balances and corporate profitability.

Source : ABPLIVE AI

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Key points generated by AI, verified by newsroom

• Indian benchmarks closed lower Friday after initial morning gains.
• RBI maintained repo rate; Governor's commentary closely watched.
• Asian markets declined; crude oil stayed elevated, metals slipped.

The Indian benchmark indices fell on Friday as the Sensex declined 74 points to settle at 74,285 points and the Nifty fell over 46 points to close trade at 23,370 at 3:30 PM.

Previously, during the early morning session, the BSE Sensex began trading near 75,550, climbing close to 200 points, while the NSE Nifty50 opened the day around 23,450, jumping almost 50 points, as of 9:15 AM.

In the 30-share BSE Sensex, among the top gainers were stocks such as Hindustan Unilever, Axis Bank, Adani Ports, Bajaj Finance and Asian Paint. Meanwhile, the laggards included stocks like Maruti, State Bank of India, Infosys, TechMahindra and Bajaj Finserv.

In the broader markets, the Nifty Smallcap rose 0.02 per cent and the Nifty Midcap 50 declined 0.38 per cent as volatility declined. Sectorally, the Nifty Media index rose 3.48 per cent and the Nifty Metal index decline 1.60 per cent.

RBI MPC Decision

The Reserve Bank of India’s Monetary Policy Committee (MPC), chaired by Governor Sanjay Malhotra, on Friday kept the benchmark repo rate unchanged at 5.25 per cent, opting for continuity in policy amid rising global uncertainty, elevated crude oil prices and evolving inflation dynamics.

The decision was taken unanimously by the six-member committee after its three-day meeting held between June 3 and June 5.

The MPC also retained its ‘Neutral’ policy stance, signalling that policymakers remain focused on balancing inflation risks with the need to support economic growth as global conditions become increasingly volatile.

With the latest decision, the Standing Deposit Facility (SDF) rate remains at 5 per cent, while the Marginal Standing Facility (MSF) rate and the Bank Rate continue at 5.5 per cent.

RBI Flags Weakening Global Outlook

Explaining the rationale behind the decision, Governor Malhotra said the global economic outlook had deteriorated since the MPC’s previous meeting, largely because of continuing geopolitical tensions in West Asia.

The RBI noted that sharply higher energy prices and disruptions in global supply chains were weighing on economic activity across countries, forcing central banks to adopt a more cautious approach.

According to the central bank, several advanced economy central banks may now have to lean towards tighter monetary policy as inflationary pressures begin to resurface.

The RBI also highlighted growing volatility in global financial markets, with investors increasingly moving towards safe-haven assets amid uncertainty. The trend has put pressure on several emerging market currencies, even as global equity markets continue to draw support from optimism surrounding artificial intelligence-led growth.

Asian Markets Trade Lower

Equity markets across the Asia-Pacific region remained under pressure on Friday morning as investors reacted to concerns over slowing global growth and geopolitical risks.

South Korea’s Kospi emerged as the biggest loser, tumbling around 6 per cent. Japan’s Nikkei 225 and China’s CSI 300 also traded in negative territory.

The weakness across regional markets tempered some of the optimism generated by Wall Street’s overnight performance.

Wall Street Ends Mixed

US markets closed on a mixed note overnight as investors continued to assess macroeconomic risks and geopolitical developments.

The S&P 500 rose 1.73 per cent, while the Dow Jones Industrial Average gained 0.41 per cent. However, the technology-heavy Nasdaq Composite slipped marginally by 0.09 per cent.

The mixed performance reflected selective buying amid continued uncertainty in global markets.

Crude Oil Stays Elevated

Oil prices remained firm as traders monitored developments in West Asia.

Brent crude futures rose 0.39 per cent to trade around $95.40 per barrel, supported by concerns that tensions in the region could persist longer than previously anticipated.

For India, elevated crude prices remain a major concern because of their impact on inflation, fiscal balances and corporate profitability.

Gold, Silver Slip Ahead Of Policy Signals

Precious metals traded lower in early deals as investors reduced safe-haven positions ahead of the RBI policy announcement.

Gold futures fell 0.63 per cent, while silver futures declined 1.26 per cent, reflecting cautious investor sentiment across global markets.