Indian stock market: Indian benchmark indices Sensex and Nifty 50 closed lower on Friday, 5 June, as investors booked profits following the Reserve Bank of India’s latest policy decision, which included a downward revision to economic growth forecasts and a higher inflation outlook for FY27.
The declined 116.67 points, or 0.16%, to settle at 74,243.34, after swinging 728 points during the session between an intraday high of 74,717.57 and a low of 73,988.75. The slipped 49.85 points, or 0.21%, to close at 23,366.70.
Market sentiment was also weighed down by persistent foreign fund outflows, geopolitical uncertainties and weakness across broader Asian markets.
In its monetary policy announcement, the RBI kept the repo rate unchanged at 5.25% and retained its neutral stance. However, the central bank revised its FY27 real GDP growth forecast lower to 6.6%, compared with 6.9% projected in April and below the estimated 7.6% growth for FY26.
At the same time, the RBI raised its FY27 inflation forecast to 5.1%, warning that price pressures could intensify in the coming quarters. Inflation is expected to peak at 5.9% in the third quarter of FY27 before moderating thereafter.
The combination of slower growth expectations and a higher inflation outlook prompted cautious sentiment among investors, leading to profit-taking across sectors, according to market experts.
Market Review and Outlook – Sumeet Bagadia, Executive Director at Choice Broking
Nifty 50 Outlook
According to Sumeet Bagadia, Executive Director at Choice Broking, on 5 June 2026, the Nifty 50 opened with a gap-up of 62.40 points at 23,478.95, reflecting positive sentiment at the start of the session. The index registered its intraday high of 23,516.35 within the first few minutes of trade. However, the initial optimism failed to sustain as selling pressure gradually emerged, particularly during the second half of the session. The weakness intensified towards the latter part of the day, dragging the index to an intraday low of 23,282.65.
Nifty 50 eventually settled at 23,366.70, ending the session with a decline of 49.85 points or 0.21% over the previous close. On the daily timeframe, the formation of a bearish candlestick pattern indicates selling pressure emerging at higher levels and reflects cautious sentiment among market participants after the recent recovery attempt.
From a technical perspective, immediate support is in the 23,200–23,250 range, while resistance is observed between 23,650 and 23,700. The Relative Strength Index (RSI) stands at 40.64, indicating weakening momentum and suggesting that the index continues to trade below the stronger bullish zone. The volatility index, India VIX, declined by 0.61% to close at 15.78, indicating slightly easing volatility and stable market sentiment. In the derivatives segment, notable call writing was seen at the 23,500 strike, followed by 23,600, while significant put writing was observed at 23,300 and 23,400 levels, indicating immediate support near lower levels while resistance remains positioned around higher strikes.
Bank Nifty
According to Sumeet Bagadia, Executive Director at Choice Broking, the Bank Nifty index opened with a gap-up of 97.35 points at 54,405.20, indicating positive sentiment in the banking space at the opening bell. The index gained strength in the first half and reached an intraday high of 54,865.50. However, profit-taking emerged thereafter, resulting in selling pressure that dragged the index to its intraday low of 54,140.60 during the second half.
Buying interest reappeared near lower levels, helping the index recover a large part of its losses and eventually settle at 54,496.25, gaining 188.40 points or 0.35% for the session. On the daily timeframe, a Spinning Top candlestick pattern signals indecision in the banking index, suggesting a balance between buyers and sellers following recent volatility.
From a technical standpoint, immediate support is placed in the 54,000–54,100 range, while resistance is seen in the 54,900–55,000 zone. The Relative Strength Index (RSI) stands at 50.15, indicating neutral-to-positive momentum and suggesting improving strength in the banking segment. Sustaining above immediate support levels will remain important for the recovery trend to continue.
The recent price action suggests a mixed trading session with benchmark indices displaying divergent performance. While Nifty witnessed selling pressure after an initial gap-up opening, Bank Nifty managed to outperform and close in positive territory after recovering from intraday weakness. Sectorally, strong buying interest was visible in Media, Realty, PSU Banks and Healthcare stocks, whereas weakness persisted in Metal, IT, Cement and Oil & Gas sectors.
Market breadth remained slightly negative, with 1,623 advances, 1,694 declines, and 94 unchanged stocks, indicating stock-specific action across the broader market. Traders are advised to closely monitor immediate support and resistance zones, as sustained movement beyond these levels will be crucial in determining the next directional trend.
Stocks to buy
Sumeet Bagadia has recommended three stocks to buy on Monday, 8 June. The three stock picks by Bagadia are – Ltd, Ltd, and Ltd.
Buy Motherson Sumi Wiring India in cash at ₹38.58; SL at ₹37; target at ₹41.50
Buy Bhansali Engineering Polymers in cash at ₹96.86; SL at ₹92.40; target at ₹105
Buy Confidence Petroleum India in cash at ₹77.61; SL at ₹73.30; target at ₹85.30
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.