The Indian market ended a lackluster session modestly higher on Tuesday after the Reserve Bank of India raised its repo rate by 25 basis points (bps) and the reverse repo rate by 50 bps, as expected, and left the cash reserve ratio (CRR) unchanged.
The central bank, headed by Duvvuri Subbarao, also lifted its economic growth outlook for 2010-11 to 8.5% from 8% and revised inflation outlook upwards to 6% from 5.5% in the April policy statement.
Firm global cues also offered some support. Most Asian stocks rose on Tuesday, lifting the MSCI Asia Pacific index by about half a percent, after a stronger than expected rebound in new U.S. home sales and upwardly revised guidance from shipper FedEx boosted sentiment.
European stocks gained for a sixth consecutive session, as UBS AG and Deutsche Bank AG reported forecast-beating earnings and the Basel Committee on Banking Supervision eased some of its proposed capital and liquidity rules, mitigating concerns about capital raising. The U.S. index futures also edged higher.
Back home, the 30-share Sensex ended up about 60 points or 0.32% at 18,072. while the 50-share Nifty rose by 12 points or 0.22% to 5,431. However, in the broader market, declining shares outpaced gaining ones by 1520 to 1369 on the BSE.
Banking stocks such as HDFC Bank, Bank of India, IDBI Bank, ICICI Bank, SBI and PNB rose between 0.67% and 1.38%.
Realty stocks bounced back as investors saw no immediate impact on interest rates. Unitech, Indiabulls Real Estate, DLF, HDIL and Sobha Developers rose by 1%-3%.
In the auto sector, car maker Maruti Suzuki (up 1.41%) and two-wheeler maker Hero Honda Motors (up 2.97%) gained on bargain hunting after tumbling in the previous session. Shares of Bajaj auto struck a record high, gaining about 5%, and Tata Motors ended up over 3%.
Ashok Leyland (down marginally) and Larsen & Toubro (down 2.94%) eased despite announcing quarterly earnings in line with market estimates.
Fast-moving consumer goods maker Hindustan Unilever slipped 0.46% after it reported a modest 2% decline in quarterly net profit. However, other FMCG stocks like Nestle India and ITC closed up with modest gains. Godrej Consumer Products, which posted a 67% rise in first-quarter net profit, soared over 6%.
Explorer Essar Oil fell 1.49% after it swung to a Rs.70-crore loss in the June quarter. Tech Mahindra slumped 3.67% and NTPC closed unchanged on disappointing results.
Drug maker Glenmark Pharmaceuticals edged up 0.28% after reporting nearly a three-fold jump in its first-quarter consolidated net profit. Heavyweight Reliance Industries ended up 0.14% ahead of its results announcement due after the market close today.
Diamond Power Infrastructure rose 0.58% after it raised Rs 114 crore via a qualified institutional share placement. Titan Industries (up 1.33%) and Jyothy Laboratories (up 2.97%) closed firm on forecast-beating results. Opto Circuits (India) fell 2.75% after it acquired U.S.-based Unetixs Vascular Inc for $9.7 million. JSW Steel slipped 0.81% after Japan's JFE Holdings agreed to invest $1.1 billion to buy a 15% stake in the company.
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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.