INDICES MAY START WITH SMALL GAINS

GIFT Nifty:

Trading of Nifty 50 index futures on the GIFT Nifty indicates that the Nifty could rise 27 points at the opening bell.

The Reserve Bank of India (RBI)`s two-day monetary policy committee (MPC) meeting will conclude today, 7 June 2024. The outcome of the meeting will likely be announced by 10 am. In April 2024, the central bank held its benchmark policy repo rate at 6.5% for the sixth consecutive meeting, as anticipated due to ongoing inflationary pressures.

Foreign portfolio investors (FPIs) sold shares worth Rs 6,867.72 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 3,718.38 crore in the Indian equity market on 6 June 2024, provisional data showed.

FPIs have sold shares worth over Rs 18109.44 crore in June 2024 (so far). They offloaded shares worth 42214.28 crore in May 2024.

Global Markets:

Oil prices edged up on Friday due to a potential shift in OPEC+ production strategy and hopes of a US interest rate cut, mirroring the trend in Europe. Brent crude futures responded with a modest gain of 0.2%, reaching $80.03 per barrel.

Asian stocks were trading mixed Friday as traders refrained from big bets until key economic data is released. Two important reports are on the docket:

The US nonfarm payrolls report, a crucial indicator of the health of the American economy, will be released later today. Investors are watching this data closely to gauge its impact on global markets.

Chinese trade data, also due later today, is being monitored by Asian markets. Concerns exist that excess capacity in China`s manufacturing sector could lead to tariffs being imposed on Chinese exports by its trade partners.

In the US, the S&P 500 and Nasdaq closed slightly lower on Thursday, giving back some of their gains from the previous session`s record highs. This came ahead of a key labor market report due Friday. Technology stocks, particularly Nvidia, led the decline.

Domestic Markets:

Domestic stocks advanced for a second day Thursday, buoyed by BJP-led NDA`s re-election and global optimism. The Nifty climbed above 22,800 despite some profit-taking in FMCG and pharma. Realty, banks, and media stocks led the rally. All eyes are now on the RBI policy decision tomorrow, with analysts expecting rates to stay on hold, but watching closely for the central bank`s comments on liquidity. The S&P BSE Sensex gained 692.27 points or 0.93% to 75,074.51. The Nifty 50 index jumped 201.05 points or 0.89% to 22,821.40.

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