Mumbai, June 4: Indian equity markets demonstrated resilience in early trading on Thursday despite weak global cues, ongoing geopolitical tensions in West Asia, and continued foreign investor selling.
The benchmark Sensex and Nifty indices traded marginally higher during a volatile session, reflecting investor caution ahead of the Reserve Bank of India’s monetary policy announcement. Market participants are closely watching the central bank’s guidance on inflation, interest rates, liquidity conditions, and economic growth prospects.
Global concerns surrounding escalating tensions involving the United States and Iran continue to impact investor sentiment, particularly due to potential implications for energy markets and international trade. Additionally, foreign institutional investors have maintained significant selling activity throughout 2026, although strong domestic institutional participation has helped support market stability.
Analysts note that market volatility remains elevated, with derivatives positioning indicating a balanced-to-cautious outlook. While fundamentals remain supportive over the medium term, investors are expected to remain selective until greater clarity emerges on monetary policy and global geopolitical developments.
For now, domestic markets continue to balance external uncertainties against resilient economic indicators and institutional support.