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Key gauges end flat ahead of RBI monetary policy decision
Jun-04-2026

Indian equity benchmarks ended almost flat in a choppy trade on Thursday, as investors preferred to stay on the sidelines ahead of the RBI's monetary policy decision on Friday. Caution also prevailed in the market amid continuing uncertainty in West Asia and relentless foreign fund outflows. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,616.56 crore on Wednesday, according to exchange data. 

Some of the important factors in trade:

India’s real GDP to grow by 6.3% in FY27, 6.4% in FY28: The Organisation for Economic Co-operation and Development (OECD) in its latest Economic Outlook report has said that India’s real Gross Domestic Product (GDP) is projected to grow by 6.3% during the fiscal year 2026-27 (FY27) and by 6.4% in FY28. 

India's economic activity continues to show resilience despite global uncertainty: Reserve Bank of India (RBI) Deputy Governor Swaminathan J has said that India's economic activity continues to show remarkable resilience, driven by strong industrial and services activity, broad-based demand, and improving corporate performance, despite geopolitical uncertainties. 

Govt clears ATF price stabilization fund worth Rs 10,000 crore to support Indian airlines: With an aim to provide cushion against challenges posed by West Asia conflict, the government of India has cleared a one-time budgetary support of Rs 10,000 crore for oil marketing companies (OMCs) to provide aviation turbine fuel (ATF) price stabilization to Indian airlines for domestic and international operations. 

Govt reviews measures to protect Indian MSMEs from potential impact of West Asia crisis: Union Minister Jitan Ram Manjhi held a review meeting on measures to protect the country's MSMEs from the potential impact of the West Asia crisis, directing officials to closely monitor the evolving situation and develop timely strategies to address any challenges arising from the global developments. 

Global front: European markets were trading mostly in green as Israel and Lebanon agreed to renew their fragile ceasefire following days of bombardment and drone strikes. Asian markets settled mostly lower as investors pulled back from technology and semiconductor shares following a weak forecast from U.S. chipmaker Broadcom. 

Finally, the BSE Sensex rose 13.84 points or 0.02% to 74,360.01 and the CNX Nifty was up by 10.95 points or 0.05% to 23,416.55.   

The BSE Sensex touched high and low of 74,544.24 and 73,807.30, respectively. There were 12 stocks advancing against 18 stocks declining on the index.     

The top gaining sectoral indices on the BSE were Consumer Durables up by 1.94%, Capital Goods up by 1.01%, Telecom up by 0.82%, Industrials up by 0.77% and Consumer Discretionary up by 0.72%, while Metal down by 0.85%, Basic Materials down by 0.49%, IT down by 0.48%, TECK down by 0.35% and Utilities down by 0.01% were the top losing indices on BSE.

The top gainers on the Sensex were Titan Company up by 3.43%, Eternal up by 2.91%, ITC up by 1.21%, Tech Mahindra up by 0.95% and SBI up by 0.89%. On the flip side, Infosys down by 1.76%, Bajaj Finserv down by 1.13%, Ultratech Cement down by 0.96%, HCL Technologies down by 0.85% and Adani Ports &SEZ down by 0.71% were the top losers. 

Meanwhile, the Organisation for Economic Co-operation and Development (OECD) in its latest Economic Outlook report has said that India’s real Gross Domestic Product (GDP) is projected to grow by 6.3% during the fiscal year 2026-27 (FY27) and by 6.4% in FY28. Rising inflation is likely to weigh on private consumption, while investment slows amid higher oil and gas prices and gas rationing. Employment growth and labour market participation are set to weaken. Inflation is projected to increase to 4.8% in FY27, driven by higher food, energy and fertiliser costs, and currency depreciation. The current account deficit is expected to widen, as higher energy import costs outweigh the impact of weaker domestic demand.

It also said that more persistent energy rationing could lead to weaker growth. On the upside, energy support could cushion real incomes and consumption more than expected. Fiscal policy is poised to turn expansionary in FY27 to mitigate the impact of higher energy prices, notably through subsidies. Moving from price support to targeted transfers could reduce the fiscal cost of policy support. 

Following a period of easing, monetary policy is projected to tighten with a policy rate increase in early FY27 to help keep inflation within the target band. Streamlining and harmonising regulations would reduce administrative burdens, boosting productivity and investment. Accelerating the rollout of renewable energy sources would strengthen energy security and reduce carbon emissions.

It further said India’s crude oil and natural gas dependence on the Middle East is substantial, with crude oil imports accounting for about 46% of total imports in 2024 and natural gas for about 57%. Energy import prices have risen sharply in recent months, but only part of that has fed into domestic energy prices. Reductions in excise duties on petrol and diesel and the removal of import duties on selected petrochemical inputs, alongside export levies on refined products, have helped to contain the pass-through from international prices to domestic inflation.

CNX Nifty touched high and low of 23,465.30 and 23,247.30, respectively. There were 26 stocks advancing against 24 stocks declining on the index. 

The top gainers on Nifty were Titan Company up by 3.67%, Eternal up by 3.00%, Cipla up by 1.95%, Coal India up by 1.84% and Adani Enterprises up by 1.79%. On the flip side, Infosys down by 1.49%, Hindalco down by 1.21%, SBI Life Insurance down by 1.19%, Bajaj Finserv down by 1.12% and Ultratech Cement down by 0.91% were the top losers. 

European markets were trading mostly in green; France’s CAC rose 58.18 points or 0.71% to 8,208.60 and Germany’s DAX gained 62.06 points or 0.25% to 24,858.00, while UK’s FTSE 100 decreased 84.39 points or 0.82% to 10,247.91.

Asian markets settled mostly lower on Thursday, tracking Wall Street’s fall overnight as escalating tensions between the US and Iran, concerns over stretched valuations and shifting monetary policy expectations leading to profit taking after strong gains over the past week. Meanwhile, Israel signalled that it would continue its military operations in southern Lebanon despite a newly agreed US-brokered ceasefire with Lebanon. Japanese markets declined, with the yen hovering near the 160-per-dollar level after Bank of Japan Governor Kazuo Ueda indicated a good chance of an interest rate hike this month and Prime Minister Sanae Takaichi warned of intervention in the foreign exchange market at any time. Moreover, Seoul shares slumped due to heavy selling by foreign investors.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

4,057.78

-26.19

-0.64

Hang Seng

25,253.40

-379.81

-1.48

Jakarta Composite

5,839.79

-101.28

-1.73

KLSE Composite

1,683.26

10.52

0.63

Nikkei 225

67,470.69

-931.44

-1.36

Straits Times

5,067.53

-70.71

-1.38

KOSPI Composite

8,639.41

-162.08

-1.84

Taiwan Weighted

45,677.46

-781.70

-1.68
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