Indian Rupee
The Indian rupee opened weak at 85.88 against the U.S. dollar on Friday, compared to its previous close of 85.79 on Thursday. The Indian rupee opened unchanged on Friday, with market attention focused on the Reserve Bank of India's (RBI) upcoming policy decision and the U.S. non-farm payrolls report. Despite a slight recovery on Thursday, the rupee's overall trajectory remains negative. The RBI is anticipated to implement a 25 basis point rate cut, its third in a row, due to moderating inflation, though the State Bank of India predicts a larger 50 bps reduction. Globally, the U.S. jobs data is crucial, as signs of economic slowdown from recent tariffs could increase the likelihood of further Federal Reserve rate cuts, influencing the dollar's strength and the rupee's direction.         

Indian Equities
the Indian stock market has opened muted, with the Nifty struggling to break past the 24,900-25,000 resistance level, as investors are pinning their hopes on a rate cut greater than 25 basis points or positive revisions to growth and inflation forecasts from the central bank. Rate-sensitive sectors such as banking, real estate, and automotive are under close watch, with the Nifty Realty Index already showing significant gains this week, though overall market sentiment is also influenced by subdued global cues.

Major gainers on Nifty were Coal India, Dr. Reddy, Indusind Bank, Tata Steel, NTPC, Eternal while major losers included Tata Motors, Trent, HDFC Life, Apollo Hospital, Bajaj Finserv

Indian Government Bonds
Indian government bond yields are anticipated to open slightly lower on Friday, June 6, 2025, ahead of the Reserve Bank of India's (RBI) monetary policy decision, with a 25 basis point interest rate cut largely priced in by the market. Traders are also hopeful for additional liquidity measures from the RBI beyond just a rate cut, which could influence the shorter end of the yield curve, and will be watching for potential tweaks to liquidity management or revised guidance, especially with the government's upcoming debt sale.

The 10-year benchmark bond yield was trading at 6.247%.