Nifty, Sensex Likely to See Muted Start; All Eyes on RBI Monetary Policy
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 24,843 mark, down 11 points from its previous close.
Asian markets opened on a positive note, whereas the U.S. stock markets closed in the negative territory overnight, with all three major indices ending lower.
On the domestic front, all eyes will be on RBI Governor Sanjay Malhotra, who is scheduled to announce the central bank’s monetary policy decision. Market participants widely anticipate that the Monetary Policy Committee (MPC) will reduce the repo rate by 25 basis points (from 6% to 5.75%), marking the third consecutive rate cut
Talking about the institutional flow, the DIIs in Indian equities have remained net buyers for the last 13 trading sessions.
On Thursday, June 5, Foreign Institutional Investors (FIIs) were net sellers, having sold equities worth ₹208.47 crore. Domestic Institutional Investors (DIIs), on the other hand, bought shares totalling ₹2,382.40 crore during the same session.
On Thursday, the Indian stock market ended higher, led by broad-based buying, with the benchmark indices gaining over half a percent each. The Sensex rallied 443.79 points, or 0.55%, to close at 81,442.04, while the Nifty 50 settled 130.70 points, or 0.53%, higher at 24,750.90.
Asian markets traded higher after a phone call between the U.S. President Donald Trump and Chinese President Xi Jinping improved sentiment.
U.S. stock markets closed lower on Thursday following a volatile session, weighed down by a sharp decline in Tesla shares.
The Dow Jones Industrial Average slipped by 108 points, or 0.25%, ending the day at 42,319.74. The S&P 500 dropped 31.51 points, or 0.53%, to finish at 5,939.30, while the Nasdaq Composite lost 162.04 points, or 0.83%, settling at 19,298.45.
Tesla's share price dropped sharply by 14.26%, ending the session at $284.70, following heightened tensions between CEO Elon Musk and President Donald Trump over the latest U.S. tax legislation. The stock has declined in four of the past five trading days, wiping out nearly $150 billion in market value since the public spat between Musk and Trump began.
New unemployment claims in the U.S. climbed to their highest level in seven months, with 247,000 people filing for initial jobless benefits in the week ending May 31. This marks an increase of 8,000 from the previous week and represents the highest figure recorded since October.
Gold prices climbed on Friday, putting the metal on track for a weekly gain. Spot gold edged up by 0.3% to reach $3,361.36 per ounce, marking a 2.3% rise so far this week. Similarly, U.S. gold futures saw a 0.3% uptick, settling at $3,384.40. Meanwhile, spot silver slipped 1.2% to $35.71 per ounce, though it continues to trade close to its highest level in 12 years.
Disclaimer: The article is for informational purposes only and not investment advice.
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