How is the Indian stock market expected to open on Monday after RBI's FII push? Here's what GIFT Nifty signals

Published 6 June 2026 · finance

Stock Market Today: Indian equity markets are expected to remain range-bound in the coming week as investors navigate a complex mix of domestic policy support

Stock Market Today: Indian equity markets are expected to remain range-bound in the coming week as investors navigate a complex mix of domestic policy support and challenging global cues. While the Reserve Bank of India's latest measures to attract foreign capital and the government's tax relief for foreign investors in government securities have improved sentiment, concerns around elevated crude oil prices, the ongoing West Asia conflict, foreign institutional investor (FII) flows and the progress of the monsoon continue to keep market participants cautious. The RBI recently kept the repo rate unchanged at 5.25% for the third consecutive policy meeting. Alongside the policy decision, the central bank announced several measures aimed at boosting foreign capital inflows and supporting the rupee, including easing investment norms for NRIs and OCIs, incentivising FCNR(B) deposits and facilitating foreign currency inflows. The government also exempted foreign portfolio investors (FPIs) from taxes on interest income and capital gains arising from investments in government securities. These steps are expected to improve the attractiveness of Indian financial markets and strengthen investor confidence. Also Read | RBI MPC Meeting June 2026: 5 key takeaways from monetary policy decision GIFT Nifty Signals Weak Start Despite the supportive domestic measures, global cues have turned negative heading into the new week.

GIFT Nifty plunged 356 points, or 1.52%, to 23,091 overnight after stronger-than-expected US jobs data triggered a sharp selloff on Wall Street and pushed US bond yields sharply higher. The decline points to a weak start for Indian equities on Monday. The fall comes after the Sensex ended Friday's session 117 points lower at 74,243, while the Nifty 50 slipped 50 points to close at 23,366.70. The sharp drop in GIFT Nifty suggests that global concerns are likely to outweigh domestic optimism at least at the opening bell. How Will Markets Open on Monday? Market experts believe the RBI's latest measures have strengthened the domestic backdrop, but global developments may continue to dictate near-term direction. "The RBI's decision to keep rates unchanged while simultaneously announcing measures to attract foreign capital is a sentiment-positive development for Indian markets. The move directly addresses concerns around rupee stability, liquidity, and sustained FII participation, which were weighing on investor confidence," said Ponmudi R, CEO of Enrich Money. Ponmudi noted that the exemptions and easing measures announced for foreign investors in government securities are likely to improve capital inflows and support sentiment. He expects banking, financial services, PSU banks and other interest-rate-sensitive sectors to attract buying interest.