Mumbai, June 6 (IANS): Indian equity benchmark indices ended lower for the second consecutive week as persistent global uncertainties outweighed supportive domestic policy measures. The Nifty declined 0.77 per cent during the week and slipped 0.21 per cent on the final trading session to close at 23,366, while the Sensex fell 116 points, or 0.16 per cent, to settle at 74,243, registering a weekly decline of 0.71 per cent. Geopolitical tensions in West Asia and their impact on crude oil prices continued to weigh on investor sentiment, although occasional moderation in oil prices offered some relief. Market analysts noted that Indian equities traded in a range-bound manner with a mild negative bias, witnessing a modest recovery toward the end of the week. While liquidity-supportive measures and currency stability following the RBI’s Monetary Policy Committee (MPC) meeting boosted confidence, the downward revision in growth forecasts tempered optimism and led to selective profit booking.
Positive policy initiatives aimed at easing access for global investors, reducing tax-related frictions in bond markets and encouraging capital inflows provided some support to the markets. The rupee also strengthened against the US dollar, moving below the Rs 95 mark as investors welcomed measures to attract foreign capital and enhance currency stability. Despite external challenges, overall sentiment remained cautious but stable, supported by domestic economic fundamentals. Analysts said investor attention will now focus on the sustainability of the RBI’s supportive stance, inflation trends and bond yield movements. With the earnings season over, markets are expected to remain range-bound until there is greater clarity on economic growth and external developments. Broader markets showed mixed performance, with the Nifty Midcap100 falling 1.57 per cent and the Nifty Smallcap100 declining 0.16 per cent during the week. Market participants identified the 23,450–23,550 zone as a key resistance level for Nifty and 23,250 as crucial support, while for Bank Nifty, resistance is seen at 54,800–55,000 and support at 54,000–53,800. Investors are also closely monitoring monsoon progress, rural demand prospects, geopolitical developments, crude oil prices and ongoing India-US trade discussions for further market cues.