Market may rise on positive global cues

Indices may open higher tracking positive leads from Asian markets and overnight rally on the Wall Street. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could rise 51.50 points at the opening bell.

Overseas, Asian shares rose following overnight gains on Wall Street, which saw the Dow Jones industrial average close above 25,000.

In US, the Dow Jones Industrial Average recorded its best daily gain since mid April as a rally in bank shares amplified a broad-market run-up that has been supported by gains in internet and technology shares. Market participants attributed Wednesday's rally to rising government bond rates. Higher rates tend to benefit the business of financials.

A rise in the yield of the benchmark 10-year Treasury note was supported by remarks from European Central Bank (ECB) senior officials, which showed the central bank remained on track to debate the timetable for ending its asset purchases soon.

Underlying strength in the euro area economy was making ECB confident that inflation will move toward target. The institution would next week discuss how it will wind down its 30 billion euro (about $35 billion) monthly-purchase program.

On the data front, the US trade deficit shrank 2.1% in April and tumbled to a seven-month low. Meanwhile, the productivity of American businesses rose at a revised 0.4% annual pace in the first quarter instead of 0.7% as originally reported. Outputor goods and services producedclimbed 2.7% instead of 2.8%, while unit-labor costs, or how much it costs to make each product, rose by 2.9%, a bit higher than the preliminary 2.7% estimate.

Back home, foreign portfolio investors (FPIs) sold shares worth a net Rs 81.40 crore yesterday, 6 June 2018, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 712.31 crore yesterday, 6 June 2018, as per provisional data.

Domestic stocks logged modest gains yesterday, 6 June 2018, after the central bank maintained its neutral stance while raising repo rate by 0.25%. The barometer index, the S&P BSE Sensex, gained 275.67 points or 0.79% to settle at 35,178.88. The Nifty 50 index rose 91.50 points or 0.86% to 10,684.65. The Sensex settled above the psychologically important 35,000 mark after regaining that level in morning trade.

Powered by Capital Market - Live News