Nifty Trades Above 23,400; Realty Sector Continues to Gain - Market Update

The headline equity benchmarks in India traded with minor gains in the mid-morning session, following the Reserve Bank of India (RBI) Governor Sanjay Malhotra's announcement that the Monetary Policy Committee (MPC) decided to keep the repo rate unchanged and maintain a neutral policy stance. The Nifty 50 index managed to stay above the 23,400 level, while the real estate sector continued to perform well.

At 11:30 IST, the S&P BSE Sensex increased by 77.38 points or 0.10% to 74,437.39. The Nifty 50 index added 15.65 points or 0.07% to 23,432.20.

In the broader market, the BSE 150 MidCap Index rose by 0.50%, and the BSE 250 SmallCap Index rallied by 0.44%. The market breadth was strong, with 2,274 shares rising and 1,573 shares falling. A total of 204 shares remained unchanged.

IPO Update:

The initial public offer (IPO) of Hexagon Nutrition received bids for 77,31,594 shares as against 2,16,02,008 shares on offer, according to stock exchange data at 11:15 IST on Friday (05 June 2026). The issue was subscribed 0.36 times. The IPO opened for bidding on 05 June 2026 and will close on 09 June 2026, with a price band of Rs 42 to Rs 45 per share.

Meanwhile, the IPO of CMR Green Technologies received bids for 42,51,37,986 shares as against 2,30,43,930 shares on offer, according to stock exchange data at 11:15 IST on Friday (05 June 2026). The issue was subscribed 18.45 times. The IPO opened for bidding on 03 June 2026 and will close on 05 June 2026, with a price band of Rs 182 to 192 per share.

RBI MPC Outcome:

The MPC, chaired by RBI Governor Sanjay Malhotra, unanimously voted to maintain the repo rate under the liquidity adjustment facility (LAF) at 5.25%. The standing deposit facility (SDF) rate remains at 5%, while the marginal standing facility (MSF) rate and the Bank Rate continue at 5.50%. The committee also retained its neutral policy stance.

The RBI noted that the prolonged conflict in West Asia has increased risks to both global growth and inflation. Volatile energy markets, falling crude inventories, and rising commodity prices have prompted major central banks to adopt a more cautious approach, with advanced economies expected to lean towards tighter monetary policies.

On the domestic front, economic activity has remained resilient, supported by steady private consumption, sustained investment momentum, robust services exports, and strong merchandise export growth in April 2026. However, higher freight and insurance costs, coupled with geopolitical uncertainties, are beginning to weigh on the economy. The central bank also flagged concerns over a deficient south-west monsoon, though various government initiatives are expected to help mitigate the impact on agriculture and rural demand.

Taking these factors into account, the RBI revised its FY27 real GDP growth forecast to 6.6% from 6.9% projected earlier. Growth is now estimated at 6.6% in Q1, 6.3% in Q2, 6.5% in Q3, and 6.8% in Q4. The central bank said prolonged supply chain disruptions, volatility in global financial markets, and weather-related shocks remain key downside risks to growth.

CPI inflation for FY27 has been projected at 5.1%, compared with the earlier estimate of 4.6%. Quarterly inflation is expected at 4.2% in Q1, 5.1% in Q2, 5.9% in Q3, and 5.4% in Q4, while core inflation is projected at 4.7% for the year.

The RBI highlighted that elevated energy prices, global supply constraints, a weaker monsoon outlook, and the risk of El Niño have increased inflation uncertainties. Given these evolving risks, the MPC decided that maintaining the current policy rate and stance would be appropriate until greater clarity emerges.

The minutes of the MPC meeting will be published on 19 June 2026. The next MPC meeting is scheduled for 3 to 5 August 2026.

Economy:

The government has announced a series of reforms to attract long-term foreign capital and deepen India's capital markets. These reforms include exempting Foreign Portfolio Investors (FPIs) from income tax on interest income and capital gains arising from investments in government securities (G-Secs) with effect from 01 April 2026. Similar tax benefits have been extended to the Bank for International Settlements (BIS). The government has also expanded foreign investor access to government bonds by including additional long-tenor securities and Sovereign Green Bonds under the Fully Accessible Route (FAR), while removing certain investment restrictions under the General Route. At the same time, investment norms for individual Persons Resident Outside India (PROIs) have been liberalised, allowing them to invest in listed Indian equities through the Portfolio Investment Scheme with higher investment limits. The Finance Ministry said the measures are aimed at simplifying market access, enhancing ease of doing business, and attracting stable foreign inflows into India's equity and debt markets.

Buzzing Index:

The Nifty Realty Index jumped 1.85% to 778.75. The index rallied 2.11% in two consecutive trading sessions. Notable performers in the sector include Prestige Estates Projects (up 2.47%), Godrej Properties (up 1.97%), Phoenix Mills (up 1.89%), Lodha Developers (up 1.15%), Aditya Birla Real Estate (up 0.91%), Oberoi Realty (up 0.61%), and DLF (up 0.21%). On the other hand, Anant Raj (down 1.77%), Brigade Enterprises (down 0.36%), and Sobha (down 0.07%) saw minor declines.

Stocks in Spotlight:

InterGlobe Aviation shed 0.61% as the company temporarily suspended operations to six international destinations as part of network optimization amid traditionally softer demand and a challenging cost environment.

Hindustan Construction Company added 1.25% after securing a contract worth Rs 127 crore from Wangchhu Hydroelectric Power (WHPL), Bhutan, for construction works related to the Wangchhu Hydroelectric Project.

Glenmark Pharmaceuticals shed 0.30% after its US subsidiary, Glenmark Pharmaceuticals Inc., USA, launched Lacosamide Injection USP, 200 mg/20 mL (10 mg/mL), in single-dose vials in the United States.

Global Markets:

Asian markets traded lower on Friday, dragged down by the overnight slump in key Wall Street tech names. In the U.S., the Dow Jones Industrial Average rallied to a fresh all-time high, while the Nasdaq Composite underperformed as investors appeared to rotate out of chip names in favor of non-tech stocks.

The 30-stock Dow jumped 874.86 points, or 1.73%, to close at a record 51,561.93. The Nasdaq lost 0.09% and ended at 26,830.96, while the S&P 500 rose 0.41% to 7,584.31.

The rotation was sparked by a sell-off in Broadcom that led investors to pare exposure to AI-linked stocks. The chipmaker slid more than 12% after its fiscal second-quarter revenue missed estimates. Chip names, which led the latest leg higher in the market’s rally to record levels, fell broadly. The VanEck Semiconductor ETF (SMH) lost more than 1%. Arm Holdings shed more than 4%, while Micron Technology fell close to 8%.

Stocks also came under pressure on Middle East worries. Mixed messages have emerged recently out of negotiations to end the war, which has upset global markets and caused oil and gasoline prices to spike.