Key Insights Before Market Opens: Nifty, Sensex Likely to Open Flat; FIIs Turn Buyers
On Thursday, June 5, Indian equity benchmarks are likely to open on a flat note. As of 7:24 AM, the GIFT Nifty was trading near the 24,740 mark, up 24 points from its previous close.
Asian markets traded mixed, while the US stock market ended mostly higher. Nifty Bank remains above its short-term average, the 20-DEMA, indicating mild strength. However, indecisiveness is seen in the market as investors await the RBI’s policy decision, which could provide cues to dictate the near-term move for the markets.
India VIX, also known as the fear index, continued its decline ahead of the RBI's monetary policy decision on Friday. It dropped by 4.89%, closing at 15.74, and has fallen almost 10% in the last two sessions.
Talking about the institutional flow, the DIIs in Indian equities have remained net buyers for the last 12 trading sessions. The FIIs have emerged as net buyers in the last trading session.
On Wednesday, June 4, Foreign Institutional Investors (FIIs) were net buyers, having bought equities worth ₹1,076.18 crore. Domestic Institutional Investors (DIIs), on the other hand, bought shares totalling ₹2,566.82 crore during the same session.
On Wednesday, Indian equity markets bounced back after three consecutive sessions of decline. The Sensex closed with a rise of 260.74 points, or 0.32%, ending the day at 80,998.25. Similarly, the Nifty 50 advanced by 77.70 points, or 0.32%, to settle at 24,620.20.
Asian markets traded mixed on Thursday, following a similar move on Wall Street overnight.
U.S. markets closed mostly positive on Wednesday, as falling Treasury yields followed the release of soft economic data. The Dow Jones Industrial Average slipped by 91.90 points (-0.22%) to end at 42,427.74. In contrast, the S&P 500 managed a marginal gain of 0.44 points (0.01%) to settle at 5,970.81. The Nasdaq Composite advanced 61.53 points, or 0.32%, closing at 19,460.49.
In May, U.S. private employers hired the fewest workers in over two years, with payrolls rising by just 37,000 jobs, according to the latest ADP National Employment Report. This marks the weakest job growth since March 2023 and follows a downwardly revised gain of 60,000 in April.
Meanwhile, the U.S. services sector showed signs of contraction for the first time in nearly a year. The ISM's non-manufacturing PMI slipped to 49.9 in May from 51.6 in April, falling below the neutral 50 mark for the first time since June 2024, indicating a slight decline in activity.
Crude oil prices fell after a build in US gasoline and diesel inventories and Saudi Arabia’s cut to its July prices for Asian crude buyers, Reuters reported. Brent crude futures fell 0.25% to $64.70 a barrel, while US West Texas Intermediate crude declined 0.41% to $62.59.
Gold prices traded higher as weaker-than-expected US economic data spurred demand for safe-haven assets. Spot gold price rose 0.1% to $3,377.79 an ounce, while US gold futures gained 0.1% to $3,401.20.
Disclaimer: The article is for informational purposes only and not investment advice.
For android only