Indices edge lower ahead of RBI policy meeting; Breadth strong

The key equity indices traded with minor losses in early trade, despite positive global cues. Investors awaited the outcome of the RBI policy meeting. Market participants are also closely monitoring bond markets and global trade developments. The Nifty traded below the 24,750 mark.

Media, IT and auto shares declined while realty, metal and PSU Bank stocks advanced.

At 09:25 IST, the barometer index, the S&P BSE Sensex declined 43.51 points or 0.05% to 81,398.53. The Nifty 50 index fell 19.20 points or 0.08% to 24,733.90.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.03% and the S&P BSE Small-Cap index added 0.20%.

The market breadth was strong. On the BSE, 1,728 shares rose and 1,098 shares fell. A total of 145 shares were unchanged.

Foreign portfolio investors (FPIs) sold shares worth 208.47 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,382.40 crore in the Indian equity market on 5 June 2025, provisional data showed.

The Reserve Bank of Indias (RBI) Monetary Policy Committee (MPC) will announce its decision on the key interest rate today (June 6), following the conclusion of its three-day meeting that began on June 4. RBI Governor Sanjay Malhotra is expected to deliver the announcement at 10 a.m.

Numbers to Track:

The yield on India's 10-year benchmark federal paper rose 0.03% to 6.193 from previous close of 6.191.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.8100 compared with its close of 85.7950 during the previous trading session.

MCX Gold futures for 5 August 2025 settlement rose 0.49% to Rs 98,353.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.02% to 98.76.

The United States 10-year bond yield fell 0.18% to 4.385.

In the commodities market, Brent crude for August 2025 settlement shed 23 cents or 0.35% to $65.11 a barrel.

Stocks in Spotlight:

JSW Energy rose 0.92%. The company has commissioned 281 MW of organic renewable energy capacity with solar capacity of 215 MW and wind capacity of 66 MW, taking the current installed capacity to 12,499 MW.

Praj Industries advanced 1.68% after the company has signed an agreement with Paraguay-based Enersur to assess, develop, and implement a fully integrated biorefinery project in Paraguay in a phased manner. The biorefinery aims to produce ethanol along with co-products such as distillers dried grains with solubles (DDGS), corn oil, biogas, biobitumen, and sustainable aviation fuel (SAF).

CEAT added 0.51%. The companys board is scheduled to meet on 10 June 2025, to consider raising funds up to Rs 500 crore through issuance of non- convertible debentures (NCDs) on a private placement basis.

Global Markets:

US Dow Jones futures were up 116 points, signaling a positive start for Wall Street.

Asian stocks traded higher after a 90-minute phone call between US President Donald Trump and Chinese President Xi Jinping sparked hopes of renewed trade talks. The discussion, centered on rare earth exports, ended with both leaders agreeing to resume negotiations. A US delegation including Scott Bessent, Howard Lutnick, and Jamieson Greer will soon head to China to pick up the dialogue.

Trump called the conversation "very good," and both sides even exchanged invitations for state visits.

Back on Wall Street, however, the mood was less upbeat. All three major US indices closed lower overnight. The S&P 500 dropped 0.53%, dragged down by a sharp fall in Tesla shares. The Nasdaq slid 0.83%, and the Dow shed 0.25%.

Tesla plunged over 8% after tensions between Trump and Elon Musk took center stage. Trump said he was "very disappointed" with Musk, following the Tesla CEOs public criticism of Trumps much-touted policy bill. Musk didnt hold back either, snapping back with, "Without me, Trump wouldve lost."

Meanwhile, fresh US labor data showed initial jobless claims climbed to 247,000 last week, up from a revised 239,000. Private sector job growth also slowed, with just 37,000 jobs added in May compared to 60,000 in April.

These figures set the stage for Fridays crucial nonfarm payrolls report, one that could shape the Feds next move.

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