Market may open with small gains

Key indices may open with small gains tracking firm Asian stocks. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 13.65 points at the opening bell. Investors will closely watch the Reserve Bank of India's (RBI) monetary policy review scheduled today, 7 June 2017. The central bank is widely expected to keep policy rates unchanged.

Overseas, Asian stocks gained but investors remained noticeably risk averse, with gold and sovereign debt set for a second day of solid gains ahead of several major political and economic events later this week. US stocks closed lower yesterday, 6 June 2017 for a second session as investors exercised caution ahead of the UK elections and political uncertainties over former Federal Bureau of Investigation director James Comey's testimony this week. European Central Bank policy meeting is also due tomorrow, 8 June 2017.

British Prime Minister Theresa May looks on course to increase her parliamentary majority in Thursday's election, an opinion poll showed, shortly after another survey suggested the race with the opposition Labour Party was neck and neck.

Oil staged a rebound to settle higher on Tuesday, as traders bet that US government data will show a ninth consecutive weekly decline in crude supplies, and concerns surrounding Qatar's diplomatic crisis eased. August Brent crude oil futures on London's ICE Futures exchange rose 65 cents, or 1.3%, to $50.12 a barrel.

Among corporate news back home, Oil India said that the company through its exploratory efforts has made one hydrocarbon discovery in the Baghjan Petroleum Mining Lease (PML) in the Upper Assam Basin in the month of May 2017 in the well South Baghjan-2. Oil India has made ten discoveries in its operational areas of Assam during 2016-17. The discoveries have opened up avenue for further exploration of already identified leads/prospects in the area. The announcement was made after market hours yesterday, 6 June 2017.

TCS announced that the company and Siemens unveiled a new collaboration around Internet of Things (IoT) innovation. Focused on customers in the manufacturing, energy, building technology, healthcare and railway industries the partnership will enable customers to benefit from new data insights and services based on MindSphere, the cloud-based, open IoT operating system from Siemens. The announcement was made after market hours yesterday, 6 June 2017.

Meanwhile, India's crucial monsoon rains are expected to reach 98% of the long-term average this year, the India Meteorological Department (IMD) reportedly said yesterday, 2 percentage points higher than its previous forecast, potentially boosting farm incomes and economic growth. The monsoon delivers about 70% of India's annual rainfall, critical for the farm sector. In April, the IMD had forecast this year's monsoon rains at 96% of the 50-year average of 89 centimetres.

Key indices settled with moderate losses yesterday, 6 June 2017 as weakness in global stocks weighed on sentiment. The Sensex fell 118.93 points or 0.38% to settle at 31,190.56, its lowest closing level since 1 June 2017.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 61.16 crore yesterday, 6 June 2017, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) had also sold shares worth a net Rs 360.01 crore yesterday, 6 June 2017, as per provisional data.

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