Weekly Market Wrap: NIFTY50, SENSEX fall nearly 1%, Nifty Midcap 100 lags; check top gainers & losers

The Indian stock market ended lower for a second straight week, with benchmark equity indices slipping nearly 1% amid heightened global uncertainty and cautious domestic cues.

The sentiment remained subdued as geopolitical tensions surrounding US-Iran developments weighed on investors, while the Reserve Bank of India’s (RBI) monetary policy decision and a series of supportive measures added to the mixed undertone in markets.

For the week ended June 5, the NIFTY50 declined 181.05 points, or 0.8%, while the BSE SENSEX fell 532.4 points, also down 0.7%.

Weekly top gainers & losers

Factors that impacted the market this week

US President Donald Trump on June 1 said Iran was eager to reach an agreement with Washington, even as both sides exchanged fresh military strikes amid efforts to extend a ceasefire and revive negotiations over Tehran's nuclear program.

Trump's remarks came after reports that he had sent back proposed changes to a draft agreement aimed at extending the existing ceasefire and reopening the Strait of Hormuz.

Positive cues from US software and technology stocks supported investor sentiment during the week. This was underpinned by better-than-expected financial results from US-based tech companies, which helped ease concerns around artificial intelligence (AI).

The market investors were also seen cautiously tracking its Asian markets, the risk of an increase in oil prices, and continued foreign investor outflows from the Indian market.

Lastly, on Friday, the Reserve Bank of India (RBI), after its three-day monetary policy committee (MPC) meeting, decided to keep the key benchmark interest rate of the Indian economy unchanged at 5.25% while retaining a ‘neutral’ stance amid the uncertain geopolitical environment.

Although the consumer price index (CPI) inflation rate remains under the RBI’s target level of 4% as of date, the central bank expects the retail inflation rate to rise to the upper tolerance band in the third quarter of the fiscal year ending 2026-27.

The RBI, in its June 2026 monetary policy, forecasted that real GDP growth for the financial year ending 2026–27 is estimated to grow at a rate of 6.6% due to the rise in energy prices and other input costs, combined with supply chain disruptions.

How the broader market performed

During the week, the Nifty Midcap 100 fell 1.6%, underperforming the main equity indices, while the Nifty Smallcap 100 dipped 0.2%.

Bharat Heavy Electricals Limited (BHEL) shares were one of the top losers despite the state-owned firm bagging two orders this week. The firm bagged a major order worth ₹21,000 crore from Meja Urja Nigam Private Ltd (MUNPL), a joint venture between NTPC Ltd and Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd (UPRVUNL). 

BHEL has secured another order worth ₹2,000–₹2,500 crore from a Nigerian entity.

Shares of EV manufacturers like JBM Auto gained during the week after the Union Cabinet approved a scheme for the replacement of old trucks and buses in the Delhi-NCR area.

Meanwhile, a rally in IFCI was seen after the exchange data from June 3 showed that HRTI Private Limited sold a total of 11,846,801, or 1.18 crore, equity shares of IFCI at an average trade price of ₹77.88 apiece, representing a 0.43% total stake of the company. The total outstanding shares were 2,694,314,331.

Sectoral watch this week

Among sectors, the Nifty FMCG index was the biggest loser, sliding 2.2%, followed by Nifty Realty, which fell 1.7%. Nifty Metal and Oil & Gas declined 1.6% and 0.8%, respectively, while the Nifty Auto index ended the week 0.7% lower.

The Nifty Media (6.7%), Nifty Consumer Durables (1.5%), Nifty PSU Bank (1.3%), and Nifty Bank (0.5%) were the only gainers by the end of the week.

India VIX, the volatility gauge, stood at 15.79 levels, slipping 2.4% during the week.