Markets Eye RBI Policy Decision; Flat Opening Expected for Nifty and Sensex

On June 5, FIIs offloaded shares worth Rs 208.47 crore, whereas DIIs picked up equities amounting to Rs 2,382.40 crore.

Pre-Market Update at 7:30 AM: Indian equity benchmarks are expected to begin Thursday’s session on a flat note. As of 7:24 AM, GIFT Nifty was hovering near 24,843, indicating a slight drop of 11 points from the previous close. While Asian indices opened in the green, U.S. markets ended lower in the previous session, with all major indices finishing in negative territory.

All eyes are on the Reserve Bank of India today, where Governor Sanjay Malhotra will reveal the outcome of the Monetary Policy Committee (MPC) meeting. Investors broadly expect a 25-basis-point cut in the repo rate, which would bring it down from 6 per cent to 5.75 per cent, continuing the easing trend seen over the last two meetings.

In terms of institutional flows, Domestic Institutional Investors (DIIs) have remained consistent net buyers for the past 13 sessions. On June 5, FIIs offloaded shares worth Rs 208.47 crore, whereas DIIs picked up equities amounting to Rs 2,382.40 crore.

Indian markets closed higher yesterday with broad-based gains. The Sensex advanced 443.79 points or 0.55 per cent, settling at 81,442.04, while the Nifty 50 gained 130.70 points or 0.53 per cent to close at 24,750.90.

Asian equities saw gains following a positive phone call between U.S. President Donald Trump and China’s President Xi Jinping, which lifted regional sentiment. In contrast, U.S. indices declined on Thursday, led by a sharp fall in Tesla shares.

The Dow slipped 108 points to end at 42,319.74, down 0.25 per cent. The S&P 500 declined by 0.53 per cent to 5,939.30, while the Nasdaq dropped 0.83 per cent, closing at 19,298.45. Tesla tumbled 14.26 per cent to USD 284.70 amid continued tensions between Elon Musk and Donald Trump over U.S. tax changes, contributing to a nearly USD 150 billion market cap erosion over recent sessions.

Adding to investor worries, U.S. jobless claims rose to 247,000 last week, the highest level since October, indicating softness in the labour market.

Gold prices advanced on Friday, with spot gold rising 0.3 per cent to  USD3,361.36 per ounce, marking a 2.3 per cent gain for the week. U.S. gold futures followed suit, up 0.3 per cent at  USD3,384.40. However, spot silver dipped 1.2 per cent to  USD35.71, though it remains near a 12-year high.

For today, Chambal Fertilisers, Manappuram Finance and Aditya Birla Fashion Retail continue to remain under the F&O ban list.

Disclaimer: The article is for informational purposes only and not investment advice.