Indian shares joined a global selloff in equities and commodities to end modestly lower for the day as the lack of further action from the Bank of Japan to curb volatility in bond markets fueled concerns that global central banks may be less forthcoming with additional monetary stimulus. The markets ended off their day's lows, tracking a rebound in the rupee.
The benchmark Sensex dropped to its lowest level in nearly two months before closing down 1.2 points or 0.53 percent at 19,041, with 20 of its stocks retreating. Consumer durable, metal and IT stocks bore the brunt of the selling. Extending losses for the fifth straight session, the broader Nifty index ended the session down 29 points or 0.49 percent at 5.760.
The Indian rupee appreciated considerably on talk of RBI intervention in the foreign exchange market and as Economic Affairs Secretary Arvind Mayaram said the government is considering measures to prop up the rupee. Mayaram, however, clarified that there are no plans to further moderate gold imports.
"We'll keep looking at different instruments, and bonds are one of the instruments we are looking at for raising resources for long-term infrastructure financing," Mayaram was quoted as saying on the sidelines of a conference in Mumbai.
Meanwhile, the Reserve Bank of India has asked exporters to repatriate their proceeds from abroad within 12 months of receiving payments and hiked the limit for online repatriation of export proceeds from $3,000 to $10,000.
The rupee was last trading at 57.88 per dollar after hitting a record low of 58.98 per dollar yesterday. The rupee witnessed a bout of volatility in the afternoon after data showed India's annual consumer price inflation stayed high at 9.31 percent in May despite showing an easing trend for the third straight month.
Another report released today showed that India's industrial production rose a lower-than-expected 2 percent in April, way below market expectations of 2.7 percent, increasing pressure on the RBI to cut rates at its upcoming policy meeting on June 17. The IIP growth rate for March has been revised upwards to 3.41 percent from the provisional estimate of 2.5 percent.
Reliance Infrastructure led the decliners in the Nifty pack with a 4 percent loss, while Axis Bank tumbled 3.3 percent, Coal India lost 3 percent, Tata Power retreated 2.9 percent and Tata Steel declined 2.8 percent. Sesa Goa, TCS, Hindalco, Bajaj Auto and Hero MotoCorp also fell sharply, losing about 2 percent each.
Titan Industries plummeted 14 percent to a fresh 52-week low on brokerage downgrades amid concerns the tightening of gold import norms will hit its business prospects. Wockhardt slumped 4.5 percent, extending the previous session's 10 percent slide, after the Business Standard reported the government might inspect its facilities.
IT services major Wipro ended largely unchanged after the IT services firm said it plans to triple its headcount in Germany over the next three years with an aim to expand its operations in the key European nation. MMTC also closed flat on disinvestment reports.
Jet Airways rose 2.3 percent ahead of a finance ministry meeting later this week to take a decision on the Rs 2,000-crore Etihad deal. Mahindra Satyam gained 1.6 percent and Tech Mahindra closed up 0.8 percent after the Andhra Pradesh High Court gave its approval to their proposed merger.
Jindal Steel and Power rallied 3.5 percent on bargain hunting after plunging over 15 percent yesterday.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.