Equities ended Friday’s session on a weak note as the Reserve Bank of India’s cautious policy tone overshadowed an initial gap-up opening, with the rupee stealing the show by posting its sharpest single-day gain since April 2.“...the central bank chose to navigate rising global uncertainties with a cautious approach rather than provide fresh support to growth,” noted a post-market commentary, capturing the mood of a session that offered little cheer to equity bulls.The BSE Sensex settled at 74,243.34, down 116.67 points or 0.16 per cent, after touching an intraday high of 74,717.57 early in the session before profit-booking dragged it to a low of 73,988.75. The Nifty 50 closed at 23,366.70, shedding 49.85 points or 0.21 per cent. For the week, the Nifty lost 0.77 per cent and the Sensex shed 525 points.The RBI’s Monetary Policy Committee unanimously held the repo rate at 5.25 per cent for the third straight meeting, maintaining a neutral stance. The central bank trimmed its FY27 GDP growth forecast to 6.6 per cent from 6.9 per cent and raised its inflation projection to 5.1 per cent, citing elevated energy prices, geopolitical tensions in West Asia, and weather-related risks. The revised projections dampened hopes of near-term rate cuts and kept investor appetite in check through the day.To counter foreign outflow pressures, the RBI announced a six-point package to attract overseas capital, including easing investment norms for NRIs and OCIs, incentivising FCNR(B) deposits, and facilitating foreign currency inflows into government securities. The government separately exempted FPIs from taxes on interest income and capital gains on G-Sec investments.The currency market responded sharply. The rupee strengthened 85 paise to close at 84.94 against the dollar — a one-month high — outperforming most Asian peers, aided by a softer greenback and declining crude prices. USD/INR slipping below the 85 mark was among the session’s more significant market moves. A decisive break past 84.70 could open the path toward 84.10 in the near term, according to analysts.Sectorally, Media, Realty, Healthcare, FMCG, and Banking closed in the green, while Metals, IT, and Oil & Gas underperformed. Adani Enterprises and Hindustan Unilever were among top Nifty gainers; Hindalco, Wipro — which faced selling pressure post its buyback record date — and TCS lagged. The Nifty Midcap 100 fell 0.35 per cent and the Smallcap 100 edged down 0.06 per cent. The BSE advance-decline ratio slipped to 0.97 from 1.16 the previous session.On commodities, domestic gold futures slipped around ₹1,500 to near ₹1,58,150 per 10 grams as the stronger rupee weighed on prices. International gold on COMEX held near $4,465, struggling to clear the $4,500–4,550 resistance zone. Crude remained under pressure, trading below $93 a barrel internationally, with the Strait of Hormuz remaining formally closed, keeping the energy supply outlook fragile.“...we maintain a cautious stance and prefer a sell-on-rise approach until the Nifty decisively reclaims the 23,700 level,” said Ajit Mishra of Religare Broking, reflecting the near-term outlook shared by most analysts.Looking ahead, markets next week will take direction from US Non-Farm Payrolls data due later Friday evening, progress on the US-Iran peace process, monsoon developments, and FII fund flows. Technically, 23,100–23,150 remains key support for the Nifty, with resistance at 23,557 and 23,800. A pullback toward the 20- and 50-day moving averages around 23,700 is possible if support holds, but analysts caution that a break below 23,200 could accelerate selling toward 22,900.Published on June 5, 2026