Markets staged a recovery from a weak open on Thursday, with benchmark indices closing nearly flat as investors stayed cautious ahead of the Reserve Bank of India’s Monetary Policy Committee announcement due Friday.“Markets traded with a cautious tone on Thursday and ended largely unchanged on the weekly expiry day for the Sensex...the Nifty attempted a mild recovery but failed to surpass the previous session’s high and eventually closed almost flat,” said Ajit Mishra, SVP, Research, Religare Broking.The Sensex closed at 74,360.01, up 13.84 points or 0.02 per cent, while the Nifty 50 settled at 23,416.55, gaining just 10.95 points or 0.05 per cent. The indices opened sharply lower — the Nifty gapped down 123 points to 23,282 — before buyers stepped in near the 23,250 support zone and gradually erased losses through the session.Broader markets continued to outperform frontline indices. The Nifty Midcap 100 rose 0.46 per cent to close at 60,966, and the Nifty Smallcap 100 ended in positive territory at 18,121. Market breadth was healthy, with 1,817 stocks advancing against 1,474 declining out of 3,396 traded. India VIX declined 2.41 per cent to 15.88, pointing to easing volatility.Sectorally, Nifty Media led gains, rising 2.19 per cent, followed by Consumer Durables at 2.18 per cent and Energy at 0.62 per cent. Metals, IT and Cement remained under pressure. Banking and pharma stocks ended the session with modest gains.Sentiment got a lift mid-session after reports that the government plans to offer tax benefits to foreign portfolio investors in government securities — a move aimed at attracting capital inflows and supporting the rupee. The USD/INR traded near the 95.70 level, with the currency under persistent pressure from FII outflows and import-related dollar demand. On the commodities front, international crude oil slipped nearly 1.5 per cent to below $95 per barrel, partly on optimism around an Israel-Lebanon ceasefire and hopes of broader Middle East diplomatic progress, though the Strait of Hormuz remains shut.Foreign institutional investors continued to be net sellers, while domestic mutual funds have been absorbing the outflows. The government also approved an ordinance easing tax norms for select foreign investors during the session.On the earnings front, Nifty-50 Q4FY26 earnings growth came in at approximately 6.6 per cent year-on-year — a moderation in large-cap momentum — while mid- and small-cap companies continued to post relatively stronger numbers, reinforcing the divergence visible in index performance.“Apart from global cues, participants will closely watch the MPC’s stance on rates, growth, and inflation for signals amid an uncertain global environment and concerns around a weak monsoon...the market will likely remain range-bound, with stock-specific movements dominating broader trends,” Mishra added.All eyes now turn to Friday’s RBI policy outcome. Markets are also tracking the trajectory of US-Iran negotiations, as any breakthrough could meaningfully ease crude oil supply concerns. Until clearer cues emerge on both fronts, analysts expect Indian equities to stay rangebound with volatility driven by global headlines and policy signals.Published on June 4, 2026