Benchmark indices Sensex and Nifty end the session on a mildly negative note on Friday, June 5, 2026, after the Reserve Bank of India (RBI) delivered a widely expected status quo on interest rates. The 30-share BSE Sensex dropped 116.67 points or 0.16 per cent, to settle at 74,243.34. The 50-share NSE Nifty slipped 49.85 points, or 0.21 per cent, to end at 23,366.70. During the day, the BSE hit a high of 74,717.57 and a low of 73,988.75, gyrating 728.82 points. The RBI has kept its benchmark repo rate unchanged at 5.25 per cent and announced a raft of measures to attract foreign capital.
“Today’s session highlights that fundamental global pressures continue to weigh heavily on Indian markets, with the RBI’s positive domestic measures failing to revive momentum against the backdrop of a faltering Middle East peace deal and an extended energy crisis. Volatility and risk-off sentiment remain firmly in place with prices highly sensitive to headlines and the broader global outlook,” said Ponmudi R, CEO of Enrich Money.
Top gainers and losers
The market closed with a negative bias, with 13 advancing and 17 declining stocks out of the 30 Sensex stocks. FMCG major Hindustan Unilever, Adani Ports, Bajaj Finance, Axis Bank and Asian Paints were among the gainers, with HINDUNILVR being the biggest gainer, up 2.10 per cent. On the flip side, Trent, Tata Consultancy Services, Tata Steel, NTPC, and HCL Tech were among the losers.
Reasons for the fall in the stock market
Profit booking: The market started the day on a positive note. The Sensex rose more than 300 points in early trading, and the Nifty also reached above 23,500. However, as stock prices rose, many investors began booking profits. This wiped out the market’s initial gains and ultimately led to a decline.
RBI raises inflation forecast: The RBI has raised its inflation forecast for the fiscal year 2026-27 from 4.6 per cent to 5.1 per cent. The central bank said rising global energy prices have led to higher petrol and diesel prices. Since May, petrol prices have risen by approximately 7.4 per cent and diesel by 8.4 per cent. Rising inflation has increased investor concerns, impacting the market.
RBI Monetary Policy lowers India’s GDP growth forecast: The RBI has also lowered India’s economic growth forecast. GDP growth is now projected at 6.6 per cent for fiscal year 2026-27, down from 6.9 per cent in April. This figure is also lower than the 7.6 per cent growth rate projected for the previous fiscal year. Signs of weak growth have weakened investor confidence and increased market pressure.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
