8 key changes in market before RBI policy today : June 06,

8 key changes in market before RBI policy today : June 06,

Indian stock market: The Indian stock market indices had a slow start as the Gift Nifty was trading at about 24,845 levels,down almost 16 points from the previous close of the Nifty futures.

 

Indian stock market: Ahead of the Reserve Bank of India’s monetary policy announcement, the domestic equities benchmark indices,the Sensex and Nifty 50,are anticipated to open on a muted tone Friday, reflecting the ambivalence of global markets.

Also Read : Sensex up 900 pts, Nifty hits 24,900 – why?

All three indices closed down overnight,with Asian markets trading higher and the US stock market finishing lower.

 

Later today,RBI Governor Sanjay Malhotra will make the announcement about monetary policy. For the third consecutive time,the RBI Monetary Policy Committee (MPC) is expected to lower the repo rate by 25 basis points (bps),from 6% to 5.75%.

The main indices gained more than half a percent each on Thursday,as the Indian stock market concluded the day higher due to broad-based purchasing.

The Nifty 50 closed 130.70 points,or 0.53%,higher at 24,750.90,while the Sensex surged 443.79 points,or 0.55%,to close at 81,442.04.

The ongoing superior performance of rate-sensitive industries like banking, real estate, and automobiles seems to be contributing to a 25 basis point rate drop, as all eyes are now on the outcome of the next RBI MPC meeting. Nonetheless, considering the conflicting international signals and a positive domestic climate, the RBI’s remarks will be quite important.

Because of the conflicting market signals, we still advise concentrating on theme-specific possibilities while keeping a careful eye on position sizing,” stated Ajit Mishra, SVP, Research, Religare Broking Ltd.

 

 

Key worldwide market indicators for the Sensex today are as follows:

Markets in Asia :
Following an upbeat phone conversation between Chinese President Xi Jinping and US President Donald Trump, Asian markets saw a surge in trading.

The Topix increased 0.24%,while Japan’s Nikkei 225 gained 0.14%. The Kosdaq increased 0.8% while the South Korean stock exchange’s Kospi gained 1.49%. Futures for Hong Kong Hang Seng Index pointed to a weaker start.

Gift Nifty Today The Indian stock market indexes had a slow start as the Gift Nifty was trading at a level of 24,845,which was about 16 points lower than the previous closing of the Nifty futures.

Due to a decline in Tesla shares, the US stock market had bumpy trading on Thursday, ending the day down.

The S&P 500 slid 31.51 points, or 0.53%, to 5,939.30, while the Dow Jones Industrial Average fell 108.00 points, or 0.25%, to 42,319.74.

At 19,298.45,the Nasdaq Composite ended the day 162.04 points (0.83%) lower.

Apple’s stock plummeted 1.08%,Nvidia’s stock fell 1.36%,Tesla’s stock fell 14.26%,and Advanced Micro Devices stock fell 2.44%. Procter & Gamble’s stock dropped 1.9%,while Brown-Forman’s stock dropped over 18%.

The share price of Tesla :
Following the public dispute between President Donald Trump and Tesla CEO Elon Musk over the new US tax bill, the company’s stock fell 14.26% to close at $284.70.

Since Trump and Musk started their rhetorical spat, the electric vehicle manufacturer has lost almost $150 billion in value, and the stock price of Tesla has dropped in four of the last five sessions.

US-China Trade Discussions :
Amid trade tensions between the two nations,China’s Foreign Ministry reported that Chinese President Xi Jinping and US President Donald Trump spoke Thursday.

Trump announced more low-level US-China talks on social media,saying the largely trade-focused negotiations came to a very positive conclusion.

Rate Cut by the ECB :
Interest rates were lowered as anticipated by the European Central Bank,but it also alluded to a break in its year-long easing cycle.

For the seventh time in a row and the eighth since it started reducing borrowing costs in June of last year,the ECB lowered its benchmark deposit rate by 25 basis points (bps) to 2%.

US Jobless Claims :
Last week,the number of Americans applying for unemployment benefits for the first time reached a seven-month high.

For the week ending May 31, the number of first claims for state unemployment benefits increased by 8,000 to a seasonally adjusted 247,000, the highest since October of last year. Reuters polled economists,who predicted 235,000 claims for the most recent week.

Prices of Gold :
Friday increase in gold prices set them up for weekly gains.The price of spot gold increased by 0.3% to $3,361.36 per ounce. Bullion has up 2.3% so far this week.US gold futures increased to $3,384.40,up 0.3%. The price of spot silver dropped 1.2% to $35.71 an ounce,remaining close to a 12-year high.

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