Last Updated on June 4, 2026 11:35 pm by BIZNAMA NEWS
By Our Business Correspondent
The Indian equity markets closed Thursday’s session with only marginal gains, as benchmark indices struggled to find direction in a volatile trading day dominated by weekly derivatives expiry, geopolitical anxieties, and persistent foreign investor outflows. Yet beneath the surface, the broader market displayed resilience, with mid‑cap and small‑cap counters attracting steady buying interest.
Benchmark Performance
The Sensex edged up 13.84 points, or 0.02%, to settle at 74,360.01, while the Nifty 50 added 10.95 points, or 0.05%, to close at 23,416.55. The modest uptick belied the sharp intraday swings that characterized the session, as traders navigated expiry pressures and awaited clarity from the Reserve Bank of India’s upcoming monetary policy announcement on 5 June 2026.
Investor sentiment remained cautious, clouded by ongoing tensions in the Middle East and relentless selling by foreign institutional investors (FIIs). However, reports that the government may scrap capital gains tax on foreign portfolio investments (FPIs) in government securities lent some support, underpinning debt market optimism and bolstering the rupee’s prospects.
Sectoral and Stock Highlights
Among sectoral movers, consumer durables and PSU banks provided a cushion to the indices. Titan Company surged 3.48%, Eternal advanced 2.98%, and ICICI Bank gained 0.78%, collectively supporting the Nifty’s climb above the 23,400 mark.
In contrast, Rajesh Exports faced a severe setback, locked in a 5% lower circuit after SEBI barred promoter Rajesh Mehta from accessing the securities market amid allegations of financial misappropriation. The regulator’s interim order, stemming from forensic audits of overseas subsidiaries, cast a shadow over the company’s credibility.
On the brighter side, Hero MotoCorp unveiled India’s first flex‑fuel motorcycles, Splendor+ Flex Fuel and HF Deluxe Flex Fuel, priced competitively for the Delhi market. The announcement underscores the company’s pivot toward sustainable mobility solutions.
Edtech player PhysicsWallah soared 15.64% after revising its lending model to partner with regulated NBFCs, reducing balance‑sheet risk. Drone manufacturer ideaForge Technology hit the upper circuit with plans to raise Rs 500 crore, while Jain Irrigation surged 6.58% on commissioning a biochar facility.
Agarwal Industrial Corporation stole the spotlight, rallying 20% after securing a Rs 477.5 crore supply contract from HPCL, highlighting the buoyancy in infrastructure‑linked plays.
Broader Market Outperformance
The BSE MidCap index rose 0.46%, while the BSE SmallCap index climbed 0.60%, reflecting investor appetite for broader market opportunities. Market breadth remained positive, with 2,244 shares advancing against 1,940 declines. The India VIX, a barometer of near‑term volatility, eased 2.41% to 15.89, signaling reduced nervousness despite global uncertainties.
Policy and Economic Developments
The Union Cabinet’s approval of a Rs 10,000 crore one‑time budgetary support for oil marketing companies to stabilize ATF prices marks a significant intervention. With ATF costs having more than doubled amid West Asia tensions, the revolving fund mechanism capping domestic prices at Rs 75.6 per litre for 36 months is expected to provide relief to airlines and passengers alike.
Meanwhile, the U.S. administration’s proposal to impose additional tariffs under Section 301 investigations has raised concerns for India. A potential 12.5% levy on Indian exports could impact sectors ranging from aluminium and cotton to palm oil and rice. India has rejected the allegations of forced labour linkages and is pursuing bilateral dialogue, with hearings scheduled for July.
Monsoon Watch
The southwest monsoon finally made landfall in Kerala, three days behind schedule. While its arrival is a relief, the India Meteorological Department’s forecast of the weakest rainfall in 11 years due to El Niño conditions has sparked apprehensions. Given that monsoon rains account for 70% of agricultural irrigation, any shortfall could ripple across crop output, food inflation, and GDP growth.
Numbers to Track
- 10‑year G‑sec yield: eased to 7.005% from 7.026%.
- Rupee: slipped to 95.8350 against the dollar.
- MCX Gold: futures rose 0.47% to Rs 159,270.
- Brent crude: fell 1.13% to $96.70 per barrel.
- US Dollar Index: down 0.21% to 99.29.
- US 10‑year yield: declined to 4.477%.
Global Market Overview
Global cues remained mixed. U.S. equities tumbled on Wednesday, snapping the S&P 500’s nine‑session winning streak as rising oil prices and Treasury yields reignited inflation fears. The Dow Jones fell 620 points, while the Nasdaq dropped nearly 0.9%.
European shares traded higher, buoyed by news of a ceasefire between Israel and Lebanon. Asian markets, however, ended lower, tracking Wall Street’s losses and reflecting unease over escalating U.S.–Iran tensions. Reports of Iranian strikes on Kuwait International Airport and U.S. defensive actions in the Persian Gulf underscored the fragility of regional stability.
Outlook
As the RBI prepares to unveil its monetary policy stance, investors are bracing for guidance on interest rates, inflation, and liquidity. The central bank’s commentary will be pivotal in shaping near‑term market direction, especially against the backdrop of volatile global energy prices and uncertain monsoon prospects.
While FIIs continue to pare exposure, domestic investors remain the counterbalance, channeling funds into mid‑cap and small‑cap opportunities. The government’s potential tax relief for FPIs in debt markets could also recalibrate foreign flows, strengthening India’s appeal as a destination for global capital.