Nifty & Sensex Volatile on June 4: Gap-Down Open Tracker Ahead of RBI Policy Decision

Indian benchmark indices NSE Nifty 50 and BSE Sensex experienced a volatile gap-down session on Thursday, June 4, 2026. Global market triggers, geopolitical tensions, and local rate expectations kept retail and institutional investors on the sidelines.

The BSE Sensex plummeted by approximately 410 points at the opening bell, tracking key supports at 78,500. Meanwhile, the broader Nifty 50 slid 123 points lower to launch trading at 23,477. Despite the initial morning weakness, mid-session trading showed signs of recovery as midcap and smallcap sectors pushed indices back to flat levels.

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What is Dragging the Market?

Three key factors contributed to the cautious sentiment across Dalal Street:

1. Escalating US-Iran Tensions

Geopolitical uncertainty escalated in the Middle East overnight, affecting global crude pricing models and energy supply lines. As an oil-importing nation, India remains highly sensitive to energy supply shocks.

2. Relentless FII Outflows

Foreign Institutional Investors (FIIs) continued their selling streak in the cash market, offsetting domestic institutional purchases. Notably, stocks like Reliance Industries (~₹1,350) and HDFC Bank (~₹820) witnessed significant FII selling.

3. Cautious Eyes on RBI Policy Decision

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) is scheduled to announce its benchmark interest rate decision on Friday, June 5, 2026. Economists widely expect the repo rate to remain unchanged at 6.50%, but investors are monitoring Governor Shaktikanta Das's commentary for future guidance.

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Sectoral Performance & Movers

A comparison of sectors shows mixed performance:

| Outperforming Sectors | Underperforming Sectors | | :--- | :--- | | Consumer Durables (+1.2%) | Information Technology (-1.1%), with TCS (~₹4,000) and Infosys (~₹1,450) leading the decline | | Oil & Gas (+0.95%) | Realty (-0.8%) | | Chemicals (+0.8%) | Private Banking (-0.75%) |

Top Gainers & Losers

• Adani Enterprises led the Nifty gainers, rising over 2.1% following rating upgrade speculations.
• Jain Irrigation surged a massive 12% in broader trade.
• Trent, Infosys, and Eicher Motors emerged as the primary underperformers, dragging key benchmarks down. Other notable losers included Tata Motors (~₹950) and Hindalco (~₹950), which fell due to sector-specific concerns. On the other hand, Tata Steel (~₹170) gained marginally, driven by positive sentiments in the metal sector.