The Week Everything
Landed at Once
Provisional Estimate, June 5
Held Unanimously, June 5
Down ~11.5% over 12 months
A Week Without a Clear Direction — Until Friday's Double-Header
Indian equity markets carried over the prior Friday close of 23,547.75 on Nifty and 74,775.74 on Sensex. The week opened with Monday June 1 weakness — Sensex fell to 74,267.34, Nifty to 23,382.60 (−0.70%) — as fresh US–Iran military exchanges weighed on sentiment. Tuesday June 2 snapped a four-day losing streak: Nifty closed at 23,483, Sensex added 382 points, driven by a 4.2% surge in Nifty IT as Infosys rose nearly 6% on an AI product launch. Mid-week was choppy as oil climbed back above $97 on renewed Gulf strikes. Friday June 5 brought the RBI hold and GDP data simultaneously — a dual catalyst that lifted the opening but faded into the close, with Nifty finishing the week at 23,366.70 and Sensex at 74,243.34 — both below the prior Friday close.
| Index / Indicator | May 29 Carry-In | June 5 Close / Level | Weekly Change |
|---|---|---|---|
| Nifty 50 | 23,547.75 | 23,366.70 | Down 181 pts (−0.77%) on week |
| Sensex | 74,775.74 | 74,243.34 | Down 532 pts (−0.71%) on week |
| Brent Crude | ~$94–95 (May 29) | ~$95–98 | Crept higher on Gulf strikes |
| USD/INR | ~94.6–95.2 | 95.65 | Rupee continued weakening |
| FII Jun 1–4 Equities | Net selling: −₹22,338 crore (Jun 1–4) | Persistent outflow | |
| DII Jun 1–4 | Net buying: +₹24,799 crore (Jun 1–4) | Cushioning the fall | |
| FPI YTD 2026 (Equities) | Net outflow: −₹2.63 lakh crore | ~1.6× full-year 2025 outflows | |
| Nifty IT (Week) | Surge of ~4–5% led by Infosys (+6%), TCS, Tech M | Best sectoral performer | |
The FII/DII structural dynamic continues unchanged. FPIs have now pulled ₹2.63 lakh crore from Indian equities in 2026 — roughly 1.6× the full-year 2025 calendar-year withdrawal of ₹1.66 lakh crore. DIIs absorbed the selling once again this week but cannot provide the fuel for a breakout. Nifty closed the week at 23,366.70 — below the prior Friday close of 23,547.75, and still rangebound between 23,200 support and 24,000 resistance, with a decisive break above 23,550–23,600 required to even begin a recovery narrative.
The Nifty 50 is down 4.66% over the past 12 months in rupee terms. Add the rupee's ~11.5% depreciation against the dollar and the dollar-adjusted return for a foreign equity investor is approximately −15.5% (precisely: (1 − 0.0466) × (1 − 0.115) − 1 ≈ −15.5%). That is not a sentiment problem. Capital allocates rationally. Until the rupee stabilises and earnings growth re-accelerates, the structural FPI outflow pressure will not abate.