Daijiworld Media Network - Mumbai
Mumbai, Jun 5: Indian equity benchmarks closed lower on Friday as investors digested the latest monetary policy decisions and remained cautious amid ongoing global economic uncertainties.
The benchmark NIFTY 50 ended the session down 49.85 points, or 0.21 per cent, at 23,366.70, while the BSE Sensex lost 116.67 points, or 0.16 per cent, to settle at 74,243.34.
Market analysts noted that the Nifty continues to face a significant resistance zone between 23,450 and 23,550. A decisive move above this range could improve investor confidence and potentially trigger a rally toward the 23,750–23,800 levels.
On the downside, experts identified the 23,250 mark as a critical support level. Maintaining positions above this threshold is considered important for preserving the market's near-term bullish structure.
Among the major laggards on the Nifty were Hindalco Industries, Wipro, and Trent Limited, which witnessed notable selling pressure during the session.
The broader market also reflected weakness. The Nifty MidCap declined 0.35 per cent, while the Nifty SmallCap slipped 0.06 per cent.
Sector-wise, information technology and metal stocks remained under pressure, whereas media shares outperformed the broader market and provided some support.
Investor sentiment remained subdued following the policy announcement by the Reserve Bank of India. The Monetary Policy Committee opted to keep the repo rate unchanged at 5.25 per cent and retained its neutral policy stance, citing uncertainties in the global economic environment.
The RBI also unveiled measures aimed at attracting greater foreign participation in India's financial markets. These include higher equity investment limits for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs), as well as an expansion of eligible government securities under the Fully Accessible Route (FAR).
According to market participants, investors largely adopted a wait-and-watch approach, focusing on the central bank's policy signals and developments in the global economy.
Analysts observed that the day's trading reflected a balanced interpretation of the RBI's stance, with investors viewing the policy as an attempt to support economic growth while maintaining macroeconomic and financial stability.