Indian Stocks End Flat as Investors Await Central Bank Decision and Monitor Middle East Tensions

By Mahima Katal

Mumbai, June 4: Indian benchmark stock indices closed little changed on Thursday as investors remained cautious amid persistent geopolitical tensions in the Middle East, continued foreign capital outflows, and anticipation surrounding the Reserve Bank of India's upcoming monetary policy decision.

The benchmark BSE Sensex rose 13.84 points, or 0.02%, to close at 74,360.01, while the NSE Nifty 50 gained 10.95 points, or 0.05%, ending the session at 23,416.55.

Trading remained volatile throughout the day. The Sensex swung nearly 737 points between its intraday high of 74,544.24 and low of 73,807.30 before recovering most of its losses by the close.

Market sentiment was weighed down by rising geopolitical uncertainty in West Asia, elevated oil prices, and sustained selling by foreign investors. According to exchange data, Foreign Institutional Investors (FIIs) sold Indian equities worth ₹5,616.56 crore (approximately $675 million) on Wednesday, extending pressure on domestic markets.

"Indian equities delivered a recovery after a weak opening, with investors stepping in near key support levels," said Hariprasad K, Founder and Research Analyst at Livelong Wealth. "However, overall sentiment remained cautious ahead of the Reserve Bank of India's monetary policy announcement."

Investors are closely watching the RBI's policy decision scheduled for Friday for signals on interest rates, inflation management, and economic growth prospects.

Among individual stocks, Titan, Eternal, ITC, Tech Mahindra, State Bank of India, and ICICI Bank led gains on the Sensex. Meanwhile, Infosys, Bajaj Finserv, UltraTech Cement, HCLTech, and Adani Ports ended lower.

Global market cues remained mixed. Asian markets broadly declined, with benchmarks in South Korea, Japan, China, and Hong Kong ending in negative territory. European markets traded mostly higher during afternoon sessions.

Wall Street closed lower overnight as investors assessed global economic risks and geopolitical developments.

Oil markets remained in focus as tensions in the Middle East continued to influence investor sentiment. Brent crude, the international benchmark for oil prices, fell 1.68% to $96.17 per barrel, though energy prices remain elevated compared with recent averages.

The subdued performance follows losses in the previous session, when the Sensex fell 0.41% and the Nifty declined 0.33%, reflecting investor caution ahead of key domestic and international developments.