Stock market today: Indian equity benchmarks Sensex and Nifty 50 ended marginally lower on Friday as investors turned cautious after the Reserve Bank of India revised its growth projections lower while raising its inflation outlook for FY27.
The fell 116.67 points, or 0.16%, to close at 74,243.34, while the NSE Nifty 50 slipped 49.85 points, or 0.21%, to settle at 23,366.70. The Sensex remained volatile throughout the session, moving in a range of more than 700 points between its intraday high of 74,717.57 and low of 73,988.75.
According to market experts, sentiment remained subdued amid persistent foreign portfolio outflows, geopolitical uncertainties and weak cues from Asian markets. Investors also reacted to the RBI’s latest policy assessment, which highlighted a more challenging macroeconomic environment.
Market Outlook by Dharmesh Shah, Vice President, ICICI Securities
Equity Benchmark extended losses over the second consecutive week, primarily driven by a lack of clarity on geopolitical developments. Nifty 50 settled at 23,367, down 0.75%. Midcap stocks are seen to profit from the two-week up move, while small-cap stocks remained flat. Sectorally, financials remained at the forefront, while FMCG and realty continued to underperform.
In the absence of any decisive breakthrough on the geopolitical front, the index extended its broad-range consolidation at 24,000-23,100 for the fourth consecutive week, as stock-specific activity continued to track better-than-expected earnings season. As a result, weekly price action formed a bear candle carrying a lower high-low, indicating an extended breather.
We expect the index to prolong the consolidation in the 24,000-23,100 zone. However, it is important to highlight that, over the past eight sessions, the corrective move Index has approached the lower consolidation band at 23,100 and is now forming a base. Hence, a decisive close above the previous session high of 23,500 would be required to trigger a reversal toward 24,000 in the coming weeks.
Structurally, over the past seven weeks, the has corrected ~6% on the backdrop of three weeks 11% rally. During this phase, the market has largely priced in a host of geopolitical and domestic headwinds, establishing a strong foundation for the next leg of the up move. Hence, focus should be on accumulating quality stocks with strong earnings, as strong support is at 22,700, which is an 80% retracement of the April up move.
Our constructive bias on the index is based on the following observations:
- Despite ongoing volatility, Bank Nifty defended May lows and is now showing early signs of structural revival
- Exempting Foreign Portfolio Investors (FPIs) from taxes on Indian Government Securities (G-Secs) indirectly benefits the equity market by stabilising the rupee and lowering domestic borrowing costs. It is also positive for PSU banks due to a fall in bond yields as they are generally big holders of Government securities.
- Broader market continues to outperform the large caps, as evidenced by the rising ratio line of Nifty 500 vs Nifty 100
- Seasonality favours buoyancy in the broader market. Over the past one decade, June has been a positive month for Nifty Midcap and Smallcap on 70% of the time, garnering average gains of 2.5% and 3.5%, respectively.
Key Monitorable:
a) Inflation: Upcoming US and India inflation data.
b) FII Inflows: Nasdaq, Kospi, and Taiwan indices are witnessing negative divergence on the daily chart, indicating an exhausted rally. The extended profit booking in these AI-led indices may help to shift the FII’s interest from AI trade to growth-oriented emerging markets like India
c) The pair of USD/INR has seen good correction after RBI’s move of exempting FPI from tax on any interest and capital gains on investment in Indian Government Securities. Further decline would help equities to revive momentum
d) Crude Oil: Any geopolitical de-escalation will cool oil prices, boosting Indian equities.
Stock To Buy This Week – Dharmesh Shah
Dharmesh Shah of ICICI Securities recommends buying .
Buy Eternal in the range of ₹249-255. He has Eternal share price target of ₹272 with a stop loss of ₹342.
Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 5/06/2026 or have no other financial interest and do not have any material conflict of interest.
The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.