Investors largely refrained from taking aggressive positions ahead of the Reserve Bank of India’s (RBI) monetary policy decision due on 5 June 2026. Market participants are keenly awaiting the central bank’s commentary on interest rates, inflation, growth prospects, and liquidity conditions. The RBI’s Monetary Policy Committee (MPC), which began its three-day meeting on 3 June, will announce its policy decision on tomorrow. The outcome is expected to set the near-term tone for the market.
Despite the volatility in benchmark indices, the broader market outperformed, with mid-cap and small-cap stocks attracting steady buying interest throughout the session.
The Nifty settles above the 23,400 level. Media, consumer durables and PSU Bank shares advanced, while metal and IT shares corrected.
As per provisional closing data, the barometer index, the S&P BSE Sensex rose 13.84 points or 0.02% to 74,360.01. The Nifty 50 index added 10.95 points or 0.05% to 23,416.55.
The broader market outperformed the frontline indices. The BSE 150 MidCap Index rose 0.46% and the BSE 250 SmallCap Index rallied 0.60%.
The market breadth was positive. On the BSE, 2,244 shares rose and 1,930 shares fell. A total of 182 shares were unchanged.
The NSE’s India VIX, a gauge of the market’s expectation of volatility over the near term, declined 2.41% to 15.89.
In the commodities market, Brent crude for Aug 2026 settlement lost $1.91 or 1.95% to $96.09 a barrel.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 95.8300 compared with its close of 95.7600 during the previous trading session.
Economy:
The Union Cabinet on 3 June 2026 approved a one-time budgetary support of up to Rs 10,000 crore for oil marketing companies to stabilise Aviation Turbine Fuel (ATF) prices for scheduled Indian airlines. The assistance will be provided as interest-free advances through the Ministry of Petroleum and Natural Gas and will support both domestic and international flight operations. The move comes after a sharp surge in ATF prices during the West Asia crisis, with rates rising from Rs 60.5 per litre in March 2026 to Rs 142 per litre in May 2026. Under the new arrangement, domestic ATF prices will be capped at Rs 75.6 per litre through a self-sustaining revolving fund mechanism for 36 months. A monitoring committee comprising officials from the Ministry of Civil Aviation, the Ministry of Petroleum and Natural Gas, and the Department of Expenditure will oversee the implementation of the scheme.
The United States on 3 June 2026 proposed additional tariffs on imports from 60 economies, including India, under Section 301 investigations into alleged failures to prevent trade in goods linked to forced labour. India could face a 12.5% additional tariff, while countries such as Canada, Mexico, Indonesia, Pakistan, Ecuador and the European Union may face a 10% levy. The U.S. Trade Representative claims some countries import forced labour-linked inputs and export finished products to the U.S., with India identified across sectors including aluminium, cotton, cocoa, fish, coffee, nickel, palm oil and rice. India has rejected the allegations and is pursuing bilateral discussions. The proposal remains under public consultation, with hearings scheduled for 07 July 2026, before any final decision is made.
Moonsoon Update:
The southwest monsoon reached Kerala on Thursday, three days later than its normal onset date of 1 June. The June-September monsoon is crucial for India’s nearly $4 trillion economy, providing about 70% of the rainfall needed for agriculture and water reservoirs. The rains typically spread across the country by mid-July, enabling the sowing of key crops such as rice, corn, cotton, soybeans and sugarcane. However, concerns remain after the India Meteorological Department forecast that an El Nino-affected monsoon in 2026 could result in the weakest rainfall in 11 years, potentially impacting crop output, food inflation and economic growth.
Buzzing Index:
The Nifty Media index surged 2.81% to 1,460.75. The index fell 0.92% in the past trading session.
Zee Entertainment Enterprises (up 11.48%), Tips Music (up 1.91%), Network 18 Media & Investments (up 1.61%), Prime Focus (up 1.33%) and Hathway Cable & Datacom (up 0.76%) advanced.
On the other hand, Saregama India (down 2.01%), Nazara Technologies (down 0.88%) and D B Corp (down 0.74%) edged lower.
Stocks in Spotlight:
Hero MotoCorp rose 0.94%. The company unveiled its first flex-fuel motorcycles, the Splendor+ Flex Fuel and HF Deluxe Flex Fuel. The HF Deluxe Flex Fuel is priced at Rs 72,792 (ex-showroom Delhi), while the Splendor+ Flex Fuel is priced at Rs 82,710 (ex-showroom Delhi). The company plans to introduce the flex-fuel models in Delhi and select regions of Maharashtra in July 2026, followed by a nationwide rollout.
Rajesh Exports was locked in 5% lower circuit after the Securities and Exchange Board of India (SEBI) barred its promoter Rajesh Mehta from accessing the securities market over allegations of financial misappropriation.
The interim order stems from an investigation initiated following a shareholder complaint concerning the companys financial reporting practices. SEBI appointed an investigating authority in October 2024 and subsequently engaged forensic auditor BDO to conduct an independent review of the companys books and records.
According to SEBIs preliminary observations, overseas subsidiaries, particularly the companys Swiss refining subsidiary Valcambi, accounted for approximately 9799% of consolidated revenue during the review period. The regulator further stated that it was unable to independently verify the companys reported investment of Rs 1,035 crore in African gold-mining assets.
The proceedings remain ongoing, and Rajesh Exports will have an opportunity to present its response before SEBI reaches a final conclusion.
Indian Energy Exchange (IEX) rose 0.65%. The company announced that it has achieved monthly electricity volume of 12,983 MUs in May 2026, registering a growth of 18.6% YoY.
PhysicsWallah surged 15.64% after the edtech company revised its student lending strategy. The company said it will partner with multiple regulated non-banking financial companies (NBFCs) to provide education loans to students. The move comes shortly after PhysicsWallah announced an investment of around Rs 120 crore in its wholly owned subsidiary, FinZ Finance.
In an exchange filing, the company said it is moving away from its earlier plan of undertaking lending activities directly. The revised approach is expected to reduce balance-sheet and credit risks.
Vibhor Steel Tubes added 1.45% after the companys board approved the incorporation of wholly-owned subsidiary, Viyom Steel Infra in Hisar, Haryana. The proposed wholly owned subsidiary shall carry on the business of specialized manufacturer of high-quality steel products for infrastructure sector.
The company will subscribe to the entire initial paid-up share capital of Rs 10 lakh in the subsidiary, with shares being issued at par value. The company will hold 100% ownership and retain full management control over the subsidiary.
Jain Irrigation Sytems surged 7.06% after the company announced the commissioning of a high-tech industrial-scale biochar facility with an annual production capacity of around 20,000 tonnes in Jalgaon, Maharashtra.
ideaForge Technology hit an upper limit of 5% after the drone manufacturer announced plans to raise up to Rs 500 crore through various capital market instruments.
Ceigall India shed 0.40%. The company announced that its wholly owned subsidiary, Ceigall Infra Projects has entered into a definitive agreement to divest its stake in Ceigall Malout Abohar Sadhuwali Highways (CMASH) to Neo Infra Income Opportunity Fund.
Global Markets:
Most European markets advanced on Thursday as a ceasefire was agreed between Israel and Lebanon on Wednesday evening.
Most Asian markets ended lower, tracking Wall Street losses, as tensions between Iran and the U.S. keep oil prices elevated, stoking energy and inflation worries.
The Kuwait International Airport was struck by Iran early Wednesday, just a day after the U.S. Central Command said it had defeated multiple Iranian ballistic missiles and drones, as well as launched “self-defense strikes on Qeshm Island in the Persian Gulf. This was in response to “attempted attacks by Tehran, it said.
If necessary, Israel and the U.S. are prepared to strike Iran again, Israeli Prime Minister Benjamin Netanyahu has reportedly said.
Overnight on Wall Street, stocks fell on Wednesday, with the S&P 500 snapping a nine-day win streak, as oil prices and Treasury yields moved higher amid worries the U.S.-Iran conflict could keep lifting inflation.
The 30-stock Dow Jones Industrial Average pulled back 620.72 points, or 1.21%, to end at 50,687.07. The broad market S&P 500 fell 0.74% to end at 7,553.68, while the tech-heavy Nasdaq Composite declined 0.89% to 26,853.98.
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