IGI Logo

Below the Quote on Daily Market Commentary for June 5th, 2026 By Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equity markets are expected to remain range-bound next week amid a mix of domestic and global cues. While the Reserve Bank of India's measures to attract foreign capital and the government's tax relief for foreign investors in government securities may support sentiment, we expect market performance likely to be driven by bottom-up stock and sector-specific action in the near term. On Friday, markets remained lacklustre with Nifty closed at 24,366, (-0.2%), while the Midcap100 declined 0.3% and Smallcap100 closed flat, as investors reacted to the RBI’s revised macroeconomic projections and rising external risks. The central bank raised its FY27 inflation forecast to 5.1% and lowered its FY27 GDP growth forecast to 6.6%, reinforcing concerns around energy prices, geopolitical tensions in West Asia and weather-related uncertainties. If inflationary pressures remain elevated and external risks persist, the likelihood of a future monetary tightening cycle could increase, which kept investors cautious. RBI kept the repo rate unchanged at 5.25% for a third consecutive meeting. It has also announced measures to attract foreign capital and support the rupee, including easing investment norms for NRIs and OCIs, incentivising FCNR(B) deposits and facilitating foreign currency inflows. Moreover, the Government exempted FPIs from taxes on interest income and capital gains from investments in government securities, a move aimed at boosting foreign inflows and enhancing the attractiveness of Indian debt markets. Looking ahead, investors will closely monitor energy prices, the ongoing West Asia conflict, progress in monsoon, FIIs fund flows and the impact of RBI’s measures for further direction.

Above views are of the author and not of the website kindly read disclaimer