Market may open on firm note on upbeat global cues

SGX Nifty:

Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could jump 94 points at the opening bell.

Global markets:

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, on Sunday made no changes to its planned oil production cuts for this year, as coalition chair Saudi Arabia announced further voluntary declines. Oil prices rose after OPEC kingpin Saudi Arabia decided to cut production by another million barrels per day. OPEC+ also announced in a statement that it will limit combined oil production to 40.463 million barrels per day over January-December 2024.

Overseas, Asian stocks are trading higher on Monday on optimism the Federal Reserve would pause its rate hikes this month after a mixed U.S. jobs report, while oil jumped as Saudi Arabia pledged big output cuts in July.

China`s services activity picked up in May, a private-sector survey showed on Monday. The Caixin/S&P Global services purchasing managers` index (PMI) rose to 57.1 in May from 56.4 in April. The 50-point mark separates expansion from contraction in activity.

Japan`s service sector saw a record rate of expansion in May, according to private surveys by au Jibun bank. The country`s services purchasing managers` index came in at 55.9, surpassing the previous record of 55.4 set last month and extending its streak to six straight months of quickening expansion.

US stocks closed higher on Friday after a labor market report showing moderating wage growth in May indicated the Federal Reserve may skip a rate hike in two weeks, while investors welcomed a Washington deal that avoided a catastrophic debt default. U.S. President Joe Biden signed into law a debt ceiling bill that allowed the U.S. to avert defaulting on its financial obligations over the weekend.

Domestic markets:

Back home, the domestic equity benchmarks managed to end on a positive note on Friday. The global stock market also saw an upward trend, buoyed by the approval of US debt ceiling legislation. The barometer index, the S&P BSE Sensex, advanced 118.57 points or 0.19% at 62,547.11. The Nifty 50 index added 46.35 points or 0.25% at 18,534.10.

Foreign portfolio investors (FPIs) sold shares worth Rs 658.88 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 581.85 crore in the Indian equity market on 2 June, provisional data showed.

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