Sensex and Nifty set for a cautious start amid mixed global cues, Gift Nifty signals flat open; all eyes on RBI’s rate decision and global economic indicators.
Mumbai | June 6, 2025 —
Indian stock markets are expected to open on a subdued note Friday, as investors await the Reserve Bank of India’s monetary policy decision while tracking mixed cues from global markets.
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Gift Nifty was trading around 24,845 — a 16-point discount to Nifty futures’ previous close — signaling a flat-to-negative opening for benchmark indices Sensex and Nifty 50.
Key Developments to Watch Today:
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1. RBI Policy Decision Today
RBI Governor Sanjay Malhotra is set to announce the central bank’s monetary policy today. Analysts expect a 25-basis point cut in the repo rate — from 6.00% to 5.75% — the third consecutive rate reduction aimed at supporting economic growth. Rate-sensitive sectors like banking, auto, and realty may react sharply to the decision and the RBI’s forward guidance.
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2. Asian Market Momentum
Asian stocks opened higher after a phone call between US President Donald Trump and China’s Xi Jinping buoyed sentiment.
- Nikkei 225 rose 0.14%
- Topix gained 0.24%
- Kospi jumped 1.49%
- Kosdaq added 0.8%
- Hang Seng futures indicated a weak start
3. Wall Street Ends Lower
US markets saw a broad-based decline on Thursday:
- Dow Jones fell 0.25%
- S&P 500 dropped 0.53%
- Nasdaq slid 0.83%
The losses were led by Tesla, which plunged 14.26% following an escalating feud between Elon Musk and President Trump over the controversial US tax bill impacting EV manufacturers.
4. Tesla Meltdown
Tesla’s stock closed at $284.70, shedding over $150 billion in market value in recent sessions. Musk’s standoff with the White House is now viewed as a significant overhang on EV stocks.
5. US-China Trade Talks Resume
A renewed dialogue between Trump and Xi offered a glimmer of hope. Trump posted that the conversation “ended very positively,” and follow-up trade discussions are underway.
6. ECB Cuts Rates, Signals Pause
The European Central Bank cut its key deposit rate by 25 bps to 2%, marking its seventh rate cut in the ongoing cycle. However, policymakers indicated a possible pause in the near term.
7. US Jobless Claims Rise
Initial jobless claims rose to 247,000 last week — a 7-month high — sparking concerns about softening labor market conditions in the US.
8. Gold and Silver Trends
Gold rose 0.3% to $3,361.36/oz, heading for a 2.3% weekly gain. US gold futures also climbed to $3,384.40.
Spot silver, however, dipped 1.2% to $35.71/oz, staying near a 12-year high.
Market Outlook:
According to Ajit Mishra, SVP at Religare Broking, “While rate cut expectations are largely priced in, RBI’s tone will determine short-term market direction. Investors should stay stock-specific amid global volatility.”
Tags:
Indian stock market, RBI policy, Gift Nifty, Tesla shares, Elon Musk, US-China trade, ECB rate cut, unemployment claims US, gold prices, Sensex today, Nifty 50