RBI Policy Ahead: Markets Open Flat with Repo Rate Cut Expectations

Indian stock markets opened flat on Friday as investors waited for the Reserve Bank of India (RBI) to announce its key policy decision. Many experts expect that RBI may cut the repo rate by 25 basis points. In early trade, there was some buying interest in IT and PSU bank stocks.

As of 9:23 AM, the Sensex was down by 82.43 points at 81,359.61, and the Nifty was down by 7.70 points at 24,743.20. However, Bank Nifty was slightly up by 4.85 points at 55,765.70. The Nifty Midcap 100 rose by 146.25 points to 58,449.25, and the Smallcap 100 gained 65.50 points to reach 18,498.10.

Experts say RBI’s comments on growth and inflation for the financial year 2026 will be very important. If inflation projections fall below 4%, the market may react positively. Market support levels are seen at 24,500 and 24,300, while resistance may be around 24,850 to 25,000. The India VIX fell by 4.21% to 15.08, showing low volatility, but traders are still cautious ahead of the policy decision. On June 5, foreign investors sold equities worth ₹208.47 crore, while domestic institutions bought stocks worth ₹2,382.40 crore. In Asia, markets were mixed, with Hong Kong and China in losses and Japan in gains. US markets ended lower on Thursday.