Indian stock markets demonstrated strong recovery momentum following the RBI's decision to maintain the repo rate unchanged at 5.25% with a neutral stance, as announced by Governor Sanjay Malhotra. Sensex jumped 77.38 points to 74,437.39, while Nifty 50 added 15.65 points to 23,432.20 during Friday's trading session. According to Business Standard, the S&P BSE Sensex gained 77.38 points or 0.10% to 74,437.39 and Nifty 50 rose 15.65 points or 0.07% to 23,432.20 as of 11:30 IST. Market breadth remained robust with 2,274 shares rising and 1,573 shares falling on the BSE, while 204 shares remained unchanged. BSE 150 MidCap Index jumped 0.50% and BSE 250 SmallCap Index rallied 0.44%, indicating strong participation across market segments.
Bank Nifty emerged as the top performer, rising over 250 points to 54,572, reflecting strong investor confidence following the RBI's policy decision. As reported by The Economic Times, the RBI is widely expected to keep its key policy rate unchanged at 5.25% according to a Reuters poll. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, expects the most likely policy action to be a 'hawkish hold' - holding rates without change while sending a hawkish message about rising inflation and future rate hikes. If the RBI decides to act now with a 25 bps rate hike, that will move banking stocks sharply upwards since they would benefit from rate hikes, while a rate hike would be negative for interest elastic segments like automobiles and real estate. Friday's advance was the fourth straight day of gains for the banking index, during which it has gained over 800 points. According to CNBC TV18, analysts maintain that although the index closing above its 20-DMA is positive, the 54,800-55,000 zone continues to remain a barrier, with last week's high of 54,865 being the first hurdle to cross.
Nifty Realty Index jumped 1.85% to 778.75, extending its strong rally that has seen the index surge 2.11% in two consecutive trading sessions. According to Business Standard, Prestige Estates Projects surged 2.47%, Godrej Properties gained 1.97%, Phoenix Mills rose 1.89%, Lodha Developers added 1.15%, Aditya Birla Real Estate increased 0.91%, Oberoi Realty advanced 0.61%, DLF rose 0.21%, while Anant Raj declined 1.77%, Brigade Enterprises fell 0.36% and Sobha dropped 0.07%. The sustained momentum in realty stocks reflects strong investor confidence in the sector's growth prospects amid favorable market conditions.
Hexagon Nutrition's IPO received bids for 77,31,594 shares against 2,16,02,008 shares on offer, achieving a subscription of 0.36 times as of 11:15 IST on Friday. The IPO, which opened for bidding on June 5, 2026, and closes on June 9, 2026, is priced between ₹42 to ₹45 per share. CMR Green Technologies' IPO received bids for 42,51,37,986 shares against 2,30,43,930 shares on offer, achieving a strong subscription of 18.45 times. The IPO, which opened on June 3, 2026, and closes on June 5, 2026, is priced between ₹182 to ₹192 per share.
The RBI's Monetary Policy Committee, chaired by Governor Sanjay Malhotra, unanimously voted to maintain the repo rate at 5.25% under the Liquidity Adjustment Facility, with the standing deposit facility rate at 5% and marginal standing facility rate at 5.50%. The central bank noted that prolonged conflict in West Asia has increased risks to both global growth and inflation, while domestic economic activity remains resilient supported by steady private consumption and sustained investment momentum. RBI revised its FY27 real GDP growth forecast to 6.6% from 6.9% earlier, with quarterly growth estimates of 6.6% in Q1, 6.3% in Q2, 6.5% in Q3 and 6.8% in Q4. CPI inflation for FY27 has been projected at 5.1%, compared with the earlier estimate of 4.6%, with quarterly inflation expected at 4.2% in Q1, 5.1% in Q2, 5.9% in Q3 and 5.4% in Q4.
