Stock Market Updates: Sensex, Nifty Volatile As RBI MPC Cuts Repo Rate By 50 bps, CRR By 100 bps

Last Updated:June 06, 2025, 10:39 IST

Indian benchmark indices are set to trade cautiously on Friday, as investors brace for a mix of domestic and global triggers

Sensex Today: Sensex and Nifty traded in red despite the RBI’s MPC, led by Governor Sanjay Malhotra, announcing a third consecutive rate cut, bringing the repo rate down to 5.50 percent with a 50 bps reduction. Sensex was trading at 81,341, down by 0.12 percent, while Nifty dropped to 24,737.75, a fall of 0.053 percent.

However, RBI shifted its stance to ‘Neutral’ from ‘Accommodative’, dampening investors’ sentiment despite a big rate cut.

Among key sectoral indices, the Nifty Auto and Nifty Financial Services were trading lower by up to 0.23%. On the other hand, the Nifty Metal and Nifty Realty indices were up 0.6% each.

Global Cues: US-China Trade Talks and Asia-Pacific Gains

Asian markets were buoyant in early trade after US President Trump and Chinese President Xi held a 90-minute phone conversation on Thursday, reigniting hopes of a resolution to their trade dispute. Trump described the talks as “very good” and hinted at a positive outcome for both nations, with officials set to resume negotiations soon.

In Asian markets, Japan’s Nikkei gained 0.31%, Topix rose 0.45%, Kospi advanced 1.49%, and Australia’s ASX200 inched up 0.03%.

US stock futures were steady ahead of a key jobs report that could provide fresh insight into the American economy’s health. Overnight, Wall Street indices closed lower, with Tesla shares dragging down broader markets. The S&P 500 lost 0.53%, the Nasdaq fell 0.83%, and the Dow Jones slipped 0.25%.

Meanwhile, the European Central Bank (ECB) reduced its marginal lending rate by 25 basis points to 2.4%—the lowest level since late 2022 and in line with market expectations.

Beyond the RBI’s MPC announcement, investors will also be monitoring India’s foreign exchange data, the US unemployment rate and non-farm payrolls data, and the Euro area’s Q1 GDP growth estimate.

Aparna Deb

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More

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