Pre Market Analysis, RBI Interest Rate Decision & Global Cues | 05 June, 2026

Today's main event is RBI policy at 10 AM, and that is likely to have a bigger impact on Indian markets than global cues. US markets closed mixed. Dow saw strong gains, but technology stocks remained weak. Asian markets, however, are trading under pressure this morning, with Korea, Japan and Taiwan seeing noticeable selling. For India, crude oil remains the biggest relief. Brent is now near $96, much lower than the levels seen during the recent Middle East tensions. That takes some pressure off inflation and import costs. The concern is still the rupee. USD/INR is hovering near 95.8 and has not shown much improvement even after crude oil cooled sharply. A weak rupee is not something the market can ignore for too long. Nifty closed near 23416 yesterday after spending the entire session in a tight range. Traders were clearly waiting for the RBI decision instead of taking aggressive positions. Today's reaction after the policy will be more important than the opening move. If RBI delivers what the market expects, Nifty may finally get a reason to break out of the recent range. If not, the sideways movement could continue for some more time. For now, all eyes are on 10 AM.