The Reserve Bank of India’s Monetary Policy Committee (MPC) meeting kicked off on Wednesday to decide on the third repo rate cut and according to economists and industry experts, the Central Bank is likely to go for a third 25 bps cut in the repo rate to 5.75 per cent.

Chaired by RBI Governor Sanjay Malhotra, the committee’s decision will be announced on June 6. The Reserve Bank has already reduced the repo rate by 50 basis points in the previous two monetary policy reviews, lowering it to 6 per cent.

Market participants are now watching closely for signs of a potential third rate cut, as expectations build for further monetary support to boost domestic growth amid worsening global macroeconomic conditions.

The RBI’s dovish turn is primarily driven by two macroeconomic indicators: benign inflation and signs of cyclical slowdown.

Indian frontline indices opened in the green on Wednesday following positive cues from the global markets.

At 9:26 am, Sensex was up 155.81 points or 0.19 per cent at 80,893.32 and Nifty was up 60 points or 0.25 per cent at 24,602.80.

Buying was seen in the midcaps and smallcaps. Nifty midcap 100 index was up 309.30 points or 0.54 per cent at 57,826.40 and Nifty smallcap 100 index was up 88.40 points or 0.49 per cent 18,210.75.

In the Sensex pack, Bharti Airtel, Eternal (Zomato), Tata Motors, M&M, IndusInd Bank, Maruti Suzuki, Tech Mahindra, Bajaj Finance, ITC, HUL and Infosys were top gainers. TCS, Ultratech Cement, ICICI Bank, Titan and Sun Pharma were top losers.

"After the initial flat opening, Nifty may find support at 24,500, followed by 24,400 and 24,300. On the upside, 24,800 is expected to act as immediate resistance, followed by 24,900 and 25,000," said, Mandar Bhojane, Equity Research Analyst, Choice Broking

The Reserve Bank of India (RBI) is expected to cut the repo rate by 100 basis points -- from 6 per cent to 5 per cent -- by the end of 2025, according to a Nomura report.

In its 'Asia H2 Outlook' report, the global brokerage noted an underperformance of both the gross domestic product growth (at 6.2 per cent compared to the RBI's projection of 6.5 per cent) and inflation (3.3 per cent compared to the RBI's target of 4 per cent).

Nomura said this is the reason why it expects the central bank to further reduce policy rates, including the repo rate.

Ahead of Friday's RBI repo rate decision, it anticipates a rate cut of 25 bps in June, August, October, and December 2025.

Nomura also sees India sticking to prudent fiscal practices. "We expect the government to stick to fiscal prudence, while monetary policy does the heavy lifting," it said in the note.

In a significant development for the Indian Railways, the country’s first exclusive Vande Bharat maintenance depot is currently under construction in the Jodhpur division of Rajasthan.

This state-of-the-art facility is being built in the Bhagat Ki Kothi area and is expected to be completed by the end of this year.

Anurag Tripathi, Divisional Railway Manager (DRM) of Jodhpur, shared details of the project, highlighting its national importance and unique features.

“For the people of Jodhpur, it is a matter of joy that the first Vande Bharat maintenance depot is being built in Jodhpur. This work will be completed by the end of this year,” Tripathi told.

The Indian stock market closed in the red on Tuesday -- the third consecutive trading session when the domestic indices witnessed a decline amid weak global cues.

Sensex ended 636.24 points or 0.78 percent down at 80,737.51 while the Nifty was down 174.10 points or 0.70 percent at 24,542.50.

On a sectoral basis, IT, PSU Bank, Financial Services, FMCG and Energy were the biggest laggards.

Midcap and Smallcap performed better than Largecap. The Nifty Smallcap 100 index was up 18.60 points, or 0.10 per cent, at 18,114 and the Nifty Midcap 100 index was down 258.45 points, or 0.45 per cent, at 57,517.

Markets edged lower in a volatile trading session, losing over half a per cent amid weak cues.

India continues to defy the global slowdown, the OECD's latest 'Economic Outlook' said on Tuesday, projecting the country's economy to grow by 6.3 per cent in 2025 and 6.4 per cent in 2026.

Strong domestic demand, resilient services and manufacturing sectors, and ongoing infrastructure investments have been cited as key drivers for India’s strong performance amid global uncertainties.

The report also cautioned that external risks — particularly from global trade frictions — could spill over into export-heavy segments.

China, on the other hand, is losing steam. Its growth is projected to moderate from 5.0 per cent in 2024 to 4.7 per cent in 2025 and 4.3 per cent in 2026.

Finance Minister Nirmala Sitharaman on Tuesday asked the Directorate of Revenue Intelligence (DRI) to adopt a holistic and technology-driven approach to tackle smuggling and the narcotics trade amid the increasingly complex geopolitical environment and security threats.

In her address at the inaugural event of the DRI’s new headquarters here, the Finance Minister said there was a need to go beyond surface-level enforcement and expose deeper systemic threats.

"Investigate holistically, keeping the big picture in mind, leverage all available resources to uncover deeper systemic risks and threads by connecting the dots," she said.

She emphasised that dismantling entire smuggling syndicates must be the end-goal of any investigation, which must not stop at peripheral seizures.

The Nifty Bank index touched a record high of 56,161.40 on Tuesday morning, crossing the 56,000 mark for the first time ever.

The surge was driven by strong buying in select banks as investors showed optimism ahead of a possible interest rate cut by the Reserve Bank of India (RBI) later this week.

However, the early gains didn’t last. By mid-morning, the index had slipped slightly, down 0.1 per cent as some investors booked profits and heavyweight banks showed weakness.

Major lenders like ICICI Bank, Axis Bank, and Kotak Mahindra Bank dragged the index lower, falling up to 0.9 per cent.

As the Reserve Bank of India (RBI) prepares for its monetary policy committee (MPC) meeting this week, industry experts said on Tuesday that the transmission of rate cuts into lower borrowing costs is vital to sustain residential real estate demand — particularly in the affordable housing segment, which is sensitive to interest rate movements.

Given the prevailing benign inflation environment and the GDP growth of 6.5 per cent recorded in FY2025, the Reserve Bank is likely to proceed with a 25-bps repo rate cut this Friday (June 6).

“The case for a rate cut is further supported by the revival in the liquidity conditions to a surplus of Rs 3.6 lakh crore, which enhances the effectiveness of monetary transmission. Additionally, the softening of G-sec yields reflects bond market confidence in the RBI’s inflation and liquidity management and strengthens the rationale for easing rates,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

India has reaffirmed its commitment to long-standing diplomatic ties with the BRICS nations during a multilateral meeting of communications ministers in Brazil.

Union Minister of State (MoS) for Rural Development and Communications Chandra Sekhar Pemmasani, representing India at the 11th BRICS Communication Ministers' Meeting in Brazil, highlighted pioneering Digital Public Infrastructure -- from Aadhaar to UPI, which is now a global model for inclusive tech-led growth.

He shared India's progress on four pillars -- Universal and Meaningful Connectivity, Space and Environmental Sustainability, and Digital Ecosystems -- under the visionary leadership of Prime Minister Narendra Modi at the meeting in Brasilia on Monday.

BRICS members include 11 nations -- Brazil, Russia, India, China, South Egypt, Africa, the United Arab Emirates, Ethiopia, Iran, Indonesia, and Saudi Arabia.