Benchmarks End Flat Ahead of RBI Policy Amid West Asia Tensions

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

Amey Bane/iStockphoto.com

By Dehuti Jani

June 4, 2026 at 11:37 AM IST

Indian equity benchmarks ended largely unchanged on Thursday as investors remained cautious ahead of the Reserve Bank of India’s monetary policy decision amid escalating tensions in West Asia and elevated oil prices. The Nifty50 rose 0.05% or 10.95 points to close at 23,416.55, while the BSE Sensex added 13.84 points to settle at 74,360.01.

Sentiment remained fragile after renewed military escalation between the US and Iran overshadowed a US-brokered Israel-Lebanon ceasefire. Brent Crude prices stayed elevated near $96 per barrel, keeping inflation concerns in focus ahead of the RBI policy outcome on Friday.

Financial stocks supported the market, with the Nifty Financial Services index gaining 0.3%, while IT and metal shares underperformed. Infosys, Bajaj Finserv and Hindalco Industries were among the top losers on the Nifty50. Broader markets outperformed the benchmarks, with the Nifty MidCap and Nifty SmallCap indices rising around 0.5% each.

Top Movers of the Day

Eternal climbed about 3% to roughly ₹254.4, emerging as the top Nifty gainer as investors continued to rotate into consumer‑facing names while the Nifty Consumer Durables index jumped nearly 2%.

Titan Company advanced around 3.67% to near ₹4,238.8, helping consumer durables outperform as steady premium consumption and defensive characteristics kept the stock in favour ahead of the RBI policy outcome.

Coal India added close to 1.84% to ₹481, extending its recent rise as buying interest returned to select PSU and energy names even as the broader Nifty Metal pack remained under pressure.

ICICI Bank gained roughly 1% to about ₹1,253, providing key support to the indices as traders preferred large private lenders with strong balance sheets in a session marked by cautious positioning before the MPC decision.

Hitachi Energy India rallied about 4.2% to nearly ₹36,695 after Citi initiated coverage with a ‘buy’ rating and a target price of ₹46,700, with the stock trading just 5% below its 52‑week high on surging volumes almost ten times its five‑day average.

CG Power and Industrial Solutions rose close to 3.7% to around ₹941 after Citi started coverage with a ‘buy’ and a target of ₹1,100, pushing the stock to a fresh 52‑week high amid strong interest in capital‑goods and grid‑equipment plays.

Zen Technologies jumped about 7% to roughly ₹1,809 as the Nifty India Defence index gained around 1%, with defence and aerospace counters back in demand on robust order‑book and margin expectations.

Mishra Dhatu Nigam surged nearly 6.6% to around ₹444.5, featuring among the top gainers both on defence and broader indices as heavy volumes signalled renewed institutional interest in speciality‑alloy and defence‑materials themes.

Physicswallah leapt about 15.6% to roughly ₹106.45, snapping a five‑day losing streak and topping the Nifty Smallcap 100 gainers list as bargain hunters stepped in following a sharp recent correction in the newly listed ed‑tech stock.

IIFL Finance rallied around 5.7% to near ₹527.2, ranking among the day’s strongest mid‑cap financials after recently raising 500 million dollars via an overseas bond sale that drew robust global demand.

JBM Auto gained over 3% to about ₹691.95 after data showed it captured a commanding 49% market share in India’s electric‑bus segment in May, up from 33% in April, supported by a spike in registrations and volumes almost nine times the five‑day average.

Jain Irrigation Systems jumped about 7.7% to roughly ₹31.38 after commissioning a high‑tech, industrial‑scale biochar facility in Jalgaon with 20,000‑tonne annual capacity, boosting sentiment around its climate‑smart agriculture and carbon‑removal franchise.

MSTC spiked nearly 19% to ₹535.7 in intraday trade as the Union Cabinet cleared a vehicle‑scrappage incentive scheme, with the stock breaking out on high volumes given its strategic positioning in recycling and metal‑scrappage auctions.

Rajesh Exports hit a 5% lower circuit near ₹104–105 after SEBI’s interim order alleged massive revenue inflation of 97–99% over several years, triggering forced selling and weighing on LIC, which holds an 10.8% stake in the company.

Sobha slipped about 2.6% to roughly ₹1,346, its steepest fall in around two months, with the stock now trading over 22% below its 52‑week high as real‑estate names saw selective profit‑taking amid lack of fresh triggers.

Futures & Options
Nifty June 2026 futures closed at 23,535, a premium of 118.45 points over the spot Nifty 50 close of 23,416.55, indicating steady rollover positioning ahead of the RBI policy outcome. In the cash market, the Nifty 50 gained 10.95 points or 0.05%, while India VIX declined 2.41% to 15.89.

Among stock futures, HDFC Bank, Infosys and Reliance Industries were the most actively traded contracts in the F&O segment of the NSE. The June 2026 derivatives series will expire on 30 June 2026.

Bonds
India’s government bond benchmark yield eased to 6.9931% on Thursday from 7.0240% in the previous session as sentiment improved on reports that the government may remove capital gains tax on foreign portfolio investors’ holdings in government securities.

The benchmark 6.48% 2035 bond yield hovered near the key 7% mark as traders largely stayed cautious ahead of Friday’s Reserve Bank of India monetary policy outcome. State-owned banks were seen buying the benchmark paper whenever yields moved above 7%, helping support prices.

Market participants said the proposed tax reform, though not officially announced, improved sentiment toward government securities and could attract stronger foreign investor demand. Traders also expect healthy demand for the new benchmark bond at Friday’s auction from banks, insurers and public sector institutions, with the relatively low outstanding stock limiting aggressive short positions.

Forex
Indian rupee weakened against the US dollar on Thursday as persistent dollar demand from oil marketing companies and foreign portfolio outflows continued to pressure the domestic currency. The rupee settled at 95.7850 per dollar compared with 95.7050 in the previous session.

The currency opened at 95.7000 and remained under pressure through most of the trading session despite limited support from optimism around proposed tax reforms aimed at attracting foreign investors.

Dollar demand from oil marketing companies remained the key driver as elevated Brent Crude prices near $96 per barrel kept importer hedging activity firm amid continuing geopolitical tensions in West Asia.

Crypto
Crypto markets remained under heavy selling pressure on Thursday as volatility intensified across digital assets. Bitcoin fell 3.43% over the past 24 hours to trade near $64,126, extending its correction to more than 12% over the last week. Bitcoin fluctuated between $63,681 and $64,127 during the session, while its market capitalisation stood near $1.28 trillion with 24-hour trading volume around $59.8 billion.

Ethereum declined 2.7% to around $1,798, slipping below the key $1,800 psychological support level amid persistent weakness in the altcoin market.

The broader crypto market cap slipped to nearly $2.29 trillion as leveraged positions continued to unwind aggressively. More than $1.76 billion worth of crypto positions were liquidated over the past 24 hours, largely driven by long-side bets.

US Stock Futures
US stock futures traded mixed on Thursday as weakness in technology shares weighed on sentiment after disappointing earnings updates from chip and cybersecurity companies. Futures linked to the S&P 500 fell 0.4%, while Nasdaq-100 futures dropped 1.1%. Futures tied to the Dow Jones Industrial Average rose 0.4%.

Broadcom shares plunged 13% after reporting a fiscal second-quarter revenue miss, while CrowdStrike declined 10% following weak second-quarter revenue guidance. Investors also continued to monitor developments in West Asia.

US Treasury Notes
US Treasury yields held near recent highs on Thursday, with the benchmark 10-year Treasury yield hovering around 4.477% as strong US economic data reinforced expectations of tighter Federal Reserve policy. Investors continued to assess stronger-than-expected labour indicators, including a 122,000 rise in private-sector jobs during May and higher JOLTS job openings data, which strengthened bets on another Fed rate hike later this year.

The bond market also remained sensitive to geopolitical tensions in West Asia and elevated Brent Crude prices near the $95-$100 per barrel range, which continued to fuel inflation concerns. Traders are now focused on Friday’s US nonfarm payrolls report for further direction on interest rate expectations.

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