Market may edge higher in early trade on positive global cues

Market is seen opening higher on positive Asian stocks and overnight gains on the Wall Street. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 32 points at the opening bell.

In overseas stock markets, Asian stocks were mostly higher today, 3 June 2016, as markets awaited key US jobs data, which will offer a key indicator of whether the Federal Reserve will pull the trigger on interest rate hike in June. In mainland China, the Shanghai Composite index was currently down 0.16%. In Hong Kong, the Hang Seng index was currently up 0.37%. Latest data showed that China Caixin's services Purchasing Manager's Index (PMI) eased to a three-month low of 51.2, from 51.8 in April. US stocks registered small gains yesterday, 2 June 2016, led by health care stocks ahead of the highly anticipated employment report due later in the global day.

Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 521.85 crore yesterday, 2 June 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 576.86 crore yesterday, 2 June 2016, as per provisional data.

Shares of FMCG companies, tractor makers, fertilizer producers and other agri input makers may edge higher after the India Meteorological Department (IMD) retained its previous forecast of good rains for the 2016 southwest monsoon season (June to September). Higher rural income may boost demand for consumer goods. FMCG firms derive substantial revenue from rural India. Good rains may also boost demand for tractors, fertilizers and other agri inputs. In its second stage forecast issued after trading hours yesterday, 2 June 2016, the IMD said that rainfall over the country as a whole for the 2016 southwest monsoon season is most likely to be above normal. Quantitatively, monsoon season rainfall for the country as a whole is likely to be 106% of the long period average (LPA) with a model error of plus/minus 4%. In its first stage forecast issued on 12 April 2016, the IMD had forecast rainfall to be 106% of the LPA with a model error of plus/minus 5%.

In its region wise forecast, the IMD said that the rainfall is likely to be 108% of LPA in North-West India, 113% of LPA in Central India, 113% of LPA in South Peninsula and 94% of LPA in North-East India, all with a model error of plus/minus 8%. The rainfall over the country as whole is likely to be 107% of its LPA during July 2016 and 104% of LPA during August 2016 both with a model error of plus/minus 9%. The quantum of the rainfall and its spatial and temporal distribution are critical for the country's agriculture.

The IMD said that the rapidly declining El Nino conditions became weak in early May 2016 and now have turned to neutral ENSO conditions. Recent changes in the atmospheric conditions over the Pacific also reflect the weakening El Nino conditions. Latest forecast from IMD-IITM coupled model indicates about 50% probability of La Nina conditions to establish during the monsoon season. Most of the other models also suggest development of La Nina conditions during the latter part of the monsoon season. El Nino conditions cause deficient rains in India whereas La Nina conditions trigger abundant rains in the country.

Mahindra & Mahindra (M&M) after market hours yesterday, 2 June 2016, announced the launch of new electric sedan eVerito. The eVerito would be available in key cities like New Delhi, Mumbai, Bangalore, Pune, Kolkata, Chandigarh, Hyderabad, Jaipur and Nagpur with immediate effect. It will be priced at Rs 9.50 lakh (ex showroom Delhi, for D2 variant, post state subsidy and FAME incentive). The direct drive single speed transmission eVerito can be charged at home. It can be charged in 1 hour and 45 minutes through fast charging technology. On a full charge, the Mahindra eVerito can travel for up to 110 kms (based on vehicle loading) and can achieve a top speed of 86 kmph. Its running cost is Rs 1.15/km assuming cost of electricity at Rs 7 per unit.

The eVerito also features Boost Mode and Telematics which include real time and immediate assistance wherever the vehicle may be.

Wipro announced that it has open sourced its big data product, Big Data Ready Enterprise (BDRE), which makes big data technology adoption simpler and faster by optimizing big data workloads under an integrated unified framework. The product addresses the complete lifecycle of managing data across enterprise data lakes, making it possible to ingest, organize, enrich, process, analyze, govern and extract data at a fast pace, significantly accelerating the big data implementation in a cost effective manner. BDRE is in production with multiple clients and has over 100+ opportunities across numerous verticals. BDRE is released under the Apache Public License v2.0 and hosted on GitHub. The announcement was made after market hours yesterday, 2 June 2016.

Recovery during the latter part of the trading session helped the two key benchmark indices clock modest gains yesterday, 2 June 2016. The Sensex rose 129.21 points or 0.48% to settle at 26,843.14, its highest closing level since 28 October 2015.

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