Stock Market Highlights: Nifty, Sensex Extend Decline For Second Consecutive Week As RBI RBI Raises FY27 Inflation Forecast, Cuts GDP View

• Indian equity benchmarks extended declines for the second consecutive week, with the Nifty 50 and Sensex falling 0.7% each.
• The indices erased weekly gains after the RBI raised its FY27 inflation forecast by 50 basis points to 5.1% and cut its GDP growth estimate to 6.6% from 6.9%.
• On Friday, the Nifty 50 closed 49.85 points, or 0.21%, lower at 23,366.70. The Sensex ended 116.67 points, or 0.16%, down at 74,243.34.

• The rupee strengthened past the 95-per-dollar mark and closed at 94.94 against the US dollar.
• The local currency gained 84 paise against the greenback at close.

• Futures tied to the broad market index slipped 0.49%, while Nasdaq 100 futures fell 1.02%.
• Dow Jones Industrial Average futures rose 36 points, or less than 0.1%.

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• Brent crude futures fell 2.8% to settle at $95.03 per barrel.
• West Texas Intermediate futures declined 3.1% to close at $93.04 per barrel.

• The pan-European Stoxx 600 opened 0.2% lower shortly after the opening bell.
• London’s FTSE 100 fell 0.2%, while Germany’s DAX declined 0.3%. France’s CAC 40 opened flat.

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• Axis Bank rose 0.76%, followed by Canara Bank at 0.74% and Punjab National Bank at 0.71%.
• Bank of Baroda fell 2.84%, while Kotak Mahindra Bank, HDFC Bank, Federal Bank and State Bank of India also traded lower.

• Neelkanth Mishra, Executive Director for India at the World Bank Headquarters, said the RBI’s decision to keep the repo rate unchanged was a rational response, as there is no evidence of sticky inflation.
• He said higher oil prices may lead to upward revisions in inflation for one year, but rate hikes to defend the currency should not be the first response. Mishra said any decision on future rate hikes can be taken later if oil prices stay elevated and inflation becomes persistent.

• Bluspring Enterprises said its arm received an order worth Rs 2,050 crore from Bharat Aluminium Co., according to an exchange filing.
• BALCO is Bharat Aluminium Co.

• Coal India will offer more coal to non-regulated sector consumers, according to an exchange filing.
• The company said a record 35 million tonnes of coal will be put on offer for bids on June 12.

• BHEL received an order worth Rs 21,000 crore from Meja Urja Nigam for a thermal power project, according to an exchange filing.
• The order is to be executed over nearly six years.

• RBI Governor Sanjay Malhotra said the central bank has strong foreign exchange reserves and expects to come out of the current shocks more resilient.
• He said the RBI will issue an updated list of upper-layer NBFCs soon and that any differential rate on deposits is unacceptable. Malhotra also said the central bank did not sell any gold and that gold tonnage has improved a bit.

• RBI Governor Sanjay Malhotra said the 4% inflation target is sacrosanct and has to be met over a period of time.
• He said the central bank expects a much better balance of payments this year and will watch if inflation becomes generalised. Malhotra also said no capital control measures are under consideration.

• Shyam Metalics said aluminium foil sales rose 24.6% year-on-year to 1,570 MT in May, according to an exchange filing.
• Stainless steel sales increased 5.3% year-on-year to 7,367 MT during the month.

• PhysicsWallah CFO said the online business remains the company’s main business and is expected to grow faster than the offline business.
• The company is evaluating multiple options with its NBFC entity, but will not do on-book lending through FinZ Finance. It is guiding for PAT profitability in FY27.

• Shyam Metalics said aluminium foil sales rose 24.6% year-on-year to 1,570 MT in May, according to an exchange filing.
• Stainless steel sales increased 5.3% year-on-year to 7,367 MT during the month.

• The Finance Ministry said the government has opened the Portfolio Investment Scheme to all individual persons resident outside India. The individual investment limit in listed companies has been raised to 10% from 5%, while the overall limit for all such investors has been increased to 24% from 10%.
• The government also expanded the Fully Accessible Route to include 15-year, 30-year and 40-year G-Secs, and sovereign green bonds. It removed short-term, concentration and security-wise limits for FPIs in government securities, while retaining the overall FPI investment cap at 6% for central G-Secs and 2% for state G-Secs.
• FPIs have also been exempted from tax on interest income and capital gains from government securities from April 1, 2026. Similar tax exemption has been extended to the Bank for International Settlements.

• Wipro fell 3.88%, leading losses among IT stocks, while HCL Technologies slipped 1.15% and Persistent Systems declined 0.82%.
• Oracle Financial Services Software gained 0.61%, followed by Coforge at 0.51% and Tech Mahindra at 0.32%. Infosys and Mphasis also traded higher.

• The government eased the tax burden on foreign portfolio investors in government securities by abolishing taxes on FPI G-Sec investments. FPI investments in G-Secs earlier attracted long-term capital gains tax of 12.5%.
• The RBI cut its FY27 GDP growth projection to 6.6% from 6.9% earlier, while keeping the FY26 growth estimate unchanged at 7.6%. It also raised its FY27 inflation projection to 5.1% from 4.6%.
• The central bank cut growth forecasts for the first three quarters of FY27 and raised inflation estimates across all four quarters.

• India is considering selling as much as a 2% stake in Hindustan Zinc, Bloomberg reported, citing people familiar with the matter.
• The transaction could raise up to Rs 5,000 crore. The government’s investment department aims to start the process this month or in July, with ICICI Securities, Axis Capital, IIFL Capital Services and HDFC Securities advising on the deal.

• Indian equity benchmarks gave up early gains, with the Nifty 50 falling as much as 0.36% to 23,331 after rising to 23,516 earlier in the day.
• The Sensex fell as much as 242 points, or 0.3%, to 74,117, after touching an intraday high of 74,717.57.

• The yield on the 10-year government bond fell as much as 4 basis points to 6.94% after the government cut tax on G-Sec income for FIIs to zero.
• The rupee appreciated as much as 31 paise to 95.47 against the US dollar.

• The government issued the Income Tax Amendment Ordinance, 2026, exempting foreign investors from tax on interest earned from government securities.
• Long-term capital gains tax on G-Secs has been cut to zero from 12.5%, while withholding tax on G-Sec interest income has been reduced to zero from 20%. The changes take effect from April 1, 2026.

• The government issued the Income Tax Amendment Ordinance, 2026, exempting foreign investors from tax on interest earned from government securities.
• FIIs will also be exempt from capital gains tax on the sale or transfer of government securities. The Bank for International Settlements will get similar tax exemption, with the ordinance effective from April 1, 2026.

• The RBI projected India’s FY27 inflation at 5.1% and core inflation at 4.7%.
• The central bank sees inflation at 4.2% in the first quarter, 5.1% in the second quarter, 5.9% in the third quarter and 5.4% in the fourth quarter. It said the forecasts are subject to risks due to uncertainty.

• The RBI projected India’s inflation at 5.1% for FY27.
• The central bank earlier said risks of higher inflation have increased and that the Monetary Policy Committee will remain data dependent.

• The RBI said prolonged volatility poses a downside risk to India’s growth outlook.
• The central bank said the Indian crude basket and average oil prices are expected to be substantially higher in FY27.

• The RBI projected India’s real GDP growth at 6.6% for FY27.
• The central bank sees GDP growth at 6.6% in the first quarter, 6.3% in the second quarter, 6.5% in the third quarter and 6.8% in the fourth quarter.

• The RBI projected India’s real GDP growth at 6.6% for FY27.
• The central bank kept the repo rate unchanged at 5.25% and maintained its policy stance at neutral.

• RBI Governor Sanjay Malhotra said monsoon deficiency will have implications for rural demand, while rising inflation could weigh on purchasing power.
• The central bank said government capital expenditure is expected to remain robust.

RBI Governor Sanjay Malhotra said the food outlook remains uncertain and risks of higher inflation have increased.

The central bank said the Monetary Policy Committee will remain data dependent. The MPC felt it would be prudent to wait for greater clarity as higher energy prices and supply disruptions could weigh on inflation.

The RBI kept the repo rate unchanged at 5.25% and continued with its neutral policy stance.

The standing deposit facility rate stands at 5%, while the marginal standing facility rate and bank rate stand at 5.5%. Governor Sanjay Malhotra said CPI inflation remained below target despite global shocks, but risks of higher inflation have increased.

• Indian government bonds gained after the RBI policy decision.
• The yield on the 10-year bond fell 3 basis points to 6.96%.

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• The Reserve Bank of India maintained its monetary policy stance at neutral.
• The central bank kept the repo rate unchanged at 5.25%, with all six Monetary Policy Committee members voting in favour of the decision.

• The Reserve Bank of India kept the repo rate unchanged at 5.25%, in line with estimates.
• All six members of the Monetary Policy Committee voted in favour of the rate decision.

• RBI Governor Sanjay Malhotra has started the monetary policy speech.
• The central bank said monetary policy has turned more cautious and noted an opportunity to further strengthen resilience.

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• Indian equity benchmarks gained ahead of the Reserve Bank of India’s Monetary Policy Committee decision.
• The Nifty 50 rose as much as 0.4% to 23,516, while the Sensex gained up to 357 points to 74,717.57.

• Wipro saw 17.4 lakh shares change hands in a block trade, Bloomberg data showed.
• The buyers and sellers were not immediately known.

• Nifty 50 rose 0.03%, or 7.55 points, to 23,424.10 in pre-open trade.
• Sensex gained 0.20%, or 147.37 points, to 74,507.38.

The rupee strengthened by as much as 6 paise to 95.72 against the US dollar at the open. Traders await the Reserve Bank of India’s Monetary Policy Committee decision later today.

• Lenskart saw 19 lakh shares change hands in a block trade, Bloomberg data showed.
• The buyers and sellers were not immediately known.

• Price bands have been changed from 10% to 20% for Aadhar Housing Finance, Aequs, Dynamic Cables, Ganesha Ecosphere, IDBI Bank, Indo Thai Securities, India Tourism Development Corporation, Jain Resource Recycling and JNK India.
• JTL Industries, Kothari Industrial Corporation, Man Industries (India), NACL Industries, National Standard (India), Ola Electric Mobility, Raymond Realty, SML Mahindra, Technvision Ventures and Ujaas Energy are also part of the revision.

• \Price bands have been changed from 5% to 10% for Allied Blenders and Distillers, Fischer Medical Ventures, GTL, JSW Holdings, Sri Lotus Developers and Realty, Lux Industries, MBL Infrastructure and Oswal Pumps.
• Pritish Nandy Communications, P N Gadgil Jewellers, Schneider Electric Infrastructure, TVS Supply Chain Solutions, Unimech Aerospace and Manufacturing, Fujiyama Power Systems and Vikas Ecotech are also part of the revision.

• Citi maintained its sell rating on Bajaj Auto with a target price of Rs 9,300 after a management meeting.
• The brokerage said management flagged rising cost pressures and steps to protect margins, including price hikes, mix improvement, cost cuts and higher exports. It said Bajaj Auto expects double-digit revenue growth, supported by volumes, mix, price hikes and foreign exchange.

• GIFT Nifty traded at 23,549, compared with Thursday’s Nifty 50 close of 23,416.55.
• The futures contract was up 132.45 points from the previous close, indicating a higher start for Indian equities.

• Jefferies said credit card issuers have lowered rewards or raised spending thresholds across card categories to support segment profitability.
• The brokerage said SBI Cards and larger private banks could gain as credit cards form a key part of profits. It said the segment has been affected by lower revolvers, higher reward costs, UPI growth and tighter regulations.

• Citi maintained its buy rating on Grasim Industries with a target price of Rs 3,600 after a management meeting.
• The brokerage said Birla Opus’ paint market share likely crossed 10% in March 2026. It expects a stronger sequential first quarter for the VSF and chemicals businesses.

• Citi maintained its buy rating on GAIL with a target price of Rs 195 after a management meeting.
• The brokerage said transmission volumes have recovered from March 2026 lows, helped by fertiliser and power volumes and improved LNG supply availability. It said management expects to meet FY27 gas marketing EBIT guidance of Rs 4,000–4,500 crore.

• Citi maintained its buy rating on Lupin with a target price of Rs 2,540 after a management meeting.
• The brokerage said Lupin is confident of maintaining EBITDA margin at around 25% in FY27 and FY28. It expects India business to grow at 1.2–1.3 times the Indian Pharmaceutical Market in FY27 and US sales to reach $1–1.1 billion.

• Morgan Stanley maintained its overweight rating on Titan with a target price of Rs 5,182 after an analyst meet.
• The brokerage said jewellery demand was affected for a week after the Prime Minister’s comments before recovering. It expects Tanishq revenue to grow at a 19% CAGR between FY26 and FY30, with EBIT growth at 16%.

• Morgan Stanley maintained its overweight rating on L&T with a target price of Rs 4,968 after a management meeting.
• The brokerage said H1FY27 is expected to remain subdued because of supply chain disruptions. It said L&T plans to scale data centre capacity to 200 MW and invest Rs 5,000 crore in green ammonia capacity over the next three years.

• Citi said ICICI Lombard’s gross premium growth is expected to be 100–200 basis points higher than the industry average after a management meeting.
• The brokerage said management remains confident about a motor third-party tariff hike in FY27. It also said the company continues to focus on improving the combined ratio through cost optimisation, reinsurance benefits and claims cost management.

• Citi maintained its buy rating on Sun Pharma with a target price of Rs 2,180 after a management meeting.
• The brokerage said VTAMA and Emgality continue to drive growth in Organon’s specialty portfolio. It said Organon’s presence in China gives Sun Pharma an opportunity to commercialise its own products in China and South Korea.

• Citi maintained its buy rating on Max Healthcare with a target price of Rs 1,330 after a management meeting.
• The brokerage said capacity expansion remains the main growth driver, with annual bed additions targeted at 10–15%. It said near-term margins may face pressure from pre-hiring and commissioning costs, while utilisation and operating leverage are expected to support margins later.

• Morgan Stanley said around two-thirds of its coverage universe beat estimates in the fourth quarter of FY26.
• The brokerage said profit growth stayed in double digits for the second straight quarter. Its preferred overweight ideas include Grasim, Polycab, Prestige Estates, ICICI Bank, Shriram Finance, TVS Motor and Titan.

• Citi, Goldman Sachs and BofA expect the RBI Monetary Policy Committee to keep rates unchanged in the June policy meeting.
• Citi expects two 25-basis-point rate hikes in August and October and has raised its FY27 average inflation forecast to 4.9% from 4.6%. Goldman Sachs expects the MPC to retain its neutral stance, while BofA said a hold is likely for now despite arguments in favour of a rate hike.

• Stocks in news include Titan Company, Wockhardt, Venus Remedies, Premier Energies, Kolte-Patil Developers, Rajesh Exports, CG Power, Juniper Hotels, Aurobindo Pharma, Ambuja Cements, Orient Cement, Ola Electric, Paytm and United Spirits.
• Ambuja Cements and Orient Cement received exchange clearances for merger-related proposals, while Ola Electric closed its Rs 780 crore QIP issue. Rajesh Exports said no penalty has been imposed by SEBI and that its reported financials are accurate.
• Other updates include ICICI Bank receiving a SEBI warning letter, Power Grid’s board set to consider fundraising on June 10, Paytm providing default loss guarantees of up to Rs 90 crore, and United Spirits likely to cease operations at its Hyderabad unit by August 31.

• Investors are awaiting the Reserve Bank of India’s Monetary Policy Committee decision today.
• Thirty-two of 38 economists tracked by Bloomberg expect the repo rate to stay unchanged at 5.25%, while the rest expect a 25-basis-point rate hike.

• Asian markets traded mixed, with South Korea’s Kospi down 6.29% and Japan’s Nikkei 225 lower by 1.34%.
• Australia’s ASX 200 slipped 0.51%, while the Hang Seng, Shanghai Composite and Nifty 50 were unchanged.

• \Brent crude traded around $95.20 a barrel after falling in the previous session.
• Oil prices eased as investors tracked signs of possible diplomatic progress between the US and Iran after a conditional ceasefire between Israel and Lebanon, even as Hezbollah rejected a US-backed truce proposal.

• GIFT Nifty traded at 23,488, compared with Thursday’s Nifty 50 close of 23,416.55.
• The futures contract was up 71.45 points from the previous close, indicating a higher start for Indian equities.