Mumbai, June 7: After starting the week with consolidation, the domestic market exhibited resilience amid concerns over tariff wars and geopolitical escalations, analysts said on Saturday.

Markets consolidated for the third consecutive week but managed to end higher by nearly a per cent, buoyed by favourable domestic cues.

After remaining range-bound for most of the week, benchmark indices surged sharply on Friday and settled near the week’s high, with the Nifty closing at 25,003 and the Sensex at 82,118.99.

“The highlight of the week was the RBI’s policy announcement, which took the market by surprise. The central bank implemented a sharper-than-expected 50 bps repo rate cut and a 100 bps CRR reduction, signalling a strong pro-growth stance. Notably, the policy stance was also shifted from ‘accommodative’ to ‘neutral’ — a move that came sooner than expected,” said Ajit Mishra, SVP, Research, Religare Broking Ltd.

By front-loading its easing measures, the RBI has underscored its commitment to reviving domestic growth amid global uncertainties. While such a bold approach was expected to unfold gradually, this decisive action reinforces confidence in the central bank’s intent to support economic recovery while managing inflation risks.

This week, sectoral performance was broadly positive, with rate-sensitive sectors witnessing strong buying interest. Realty, auto, and banking stocks led the rally, reflecting improved outlooks for credit growth and consumer sentiment. Financials and NBFCs also gained, as lower interest rates are expected to enhance borrowing conditions.

Conversely, IT stocks underperformed due to persistent global uncertainties, particularly in the U.S. and European markets. In the broader markets, both midcap and smallcap indices outperformed the benchmarks, reflecting a risk-on sentiment among investors, with gains ranging between 2.8 per cent and 4 per cent.

According to Vinod Nair, Head of Research, Geojit Investments Ltd, bolstered by supportive macro indicators such as strong Q4 GDP, GST collection and a favourable monsoon, investors focused on domestically oriented and interest-sensitive sectors such as financials, real estate, retail and FMCG, which saw strength, supported by strong institutional inflows.

Profit booking was visible during the week on account of the ongoing global uncertainty. Mid and small caps generally outperformed large caps, driven by better earnings and valuations.

“While China’s rare earth restrictions pose long-term risks and investors await the inflation print in the US, the aggressive RBI rate cut, backed by cooling inflation and a steady GDP outlook, is likely to support investor confidence amidst the ongoing global uncertainties,” Nair noted.

Going forward, market participants will focus on key macroeconomic data for further cues. High-frequency indicators such as CPI inflation will be closely tracked to gauge demand trends and the central bank’s next steps, said experts.

New Delhi, June 7: India has issued a Notice to Airmen (NOTAM) for a major Indian Air Force (IAF) exercise scheduled to take place near the southern sector of the India-Pakistan International Border in Rajasthan from Saturday, June 7, to Sunday, June 8.

The exercise is part of the IAF’s regular operational preparedness and will be conducted in airspace near the border.

According to the NOTAM, the aerial drill will commence at 3:30 p.m. on June 7 and conclude at 9:30 p.m. the following day.

During this period, airspace over the designated region will be restricted to ensure the safe and seamless execution of air operations.

An official from the Indian Air Force confirmed that the combat exercises will feature a range of advanced air assets, including frontline fighter jets such as Rafale, Mirage 2000, and Sukhoi-30, in addition to surveillance platforms and other support systems.

Although the Ministry of Defence has not officially connected the exercise to ongoing geopolitical tensions, the timing and location of the drill carry notable implications.

This sector has become a focal point amid rising tensions following a deadly cross-border terror attack in Pahalgam. That incident triggered reciprocal airspace restrictions by both India and Pakistan, significantly straining bilateral relations.

India recently closed its airspace to all Pakistani-registered and military aircraft from April 30 to May 23.

This action followed Pakistan’s earlier decision to bar Indian flights from its airspace, marking an escalation in diplomatic and military frictions.

The situation remains tense along the Line of Control (LoC) in Jammu and Kashmir, where frequent ceasefire violations by Pakistani troops have prompted firm retaliatory responses from Indian forces.

This comes against the backdrop of India’s ‘Operation Sindoor’, which was launched on May 7, in retaliation to the terror attack in Pahalgam, where terrorists killed 26 innocent people.

Washington, June 7: US President Donald Trump planned to sell the red Tesla car he said he bought in March, according to local media reports.

Citing the New York Times, the media reported that Trump had bought the car to show his support for Elon Musk amid criticism of his role in the administration.

“Administration officials said Mr Trump showed little interest in engaging with Mr Musk, even after the billionaire signalled he would be open to de-escalating the fight” they currently have, the report added.

Late Thursday, Musk backed off a threat to “immediately” decommission SpaceX’s Dragon spacecraft, which transports NASA astronauts and supplies to and from the International Space Station.

A short time later, when Bill Ackman, the hedge-fund billionaire, posted on social media that the two men “should make peace for the benefit of our great country,” Musk responded, “You’re not wrong.”

“For Musk, a prolonged feud with Trump could be hugely expensive,” noted the report. His companies, including SpaceX, have benefited from billions of dollars in government contracts and were positioned to receive billions more.

On Thursday, Trump threatened to end those contracts.

The feud is risky for Trump as well, it added. Musk, the world’s richest person, who spent about 275 million US dollars to help elect Trump in 2024, had promised to give 100 million dollars to groups controlled by the president’s team before the 2026 midterms.

Those funds have yet to be delivered and are now very much in doubt.

This also comes against the backdrop of Elon Musk’s threat, which he later retracted, to cut off NASA’s use of SpaceX’s Dragon spacecraft would be a huge blow to NASA, depriving the space agency of the only American vehicle capable of transporting astronauts to the International Space Station and dramatically changing how NASA would access the $100 billion orbiting laboratory, The Washington Post has reported.

The threat, posted on X, came during an escalating fight between the wealthiest man in the world and President Donald Trump, after Trump had threatened to cancel all of Musk’s company’s federal contracts.

“Given SpaceX’s importance to multiple federal programs, severing those relationships could leave NASA as well as the Pentagon and intelligence agencies in a lurch,” noted the report.

Several hours after making the threat, Musk relented, saying in response to a post on X that he should cool off and reconsider: “Ok, we won’t decommission Dragon.”