Key benchmark indices may gain in early trade tracking firmness in Asian stocks. Trading of Nifty 50 index futures on the Singapore stock exchange indicates that the Nifty could gain 36.90 points at the opening bell. Meanwhile, the Reserve Bank of India (RBI) RBI will announce the Second Bi-monthly Monetary Policy Statement, 2016-17 at 11.00 IST today, 7 June 2016. The RBI is likely to hold policy rates unchanged.
In overseas markets, Asian stocks rose today, 7 June 2016 after Federal Reserve Chairwoman Janet Yellen yesterday, 6 June 2016 said US interest rate hikes are likely on the way but held back any reference to the timing. The Fed chief said last month's jobs report was "disappointing" and bears watching, though she gave a largely upbeat assessment of the US economic outlook, warning against attaching too much significance to the payrolls data in isolation. US stocks gained yesterday, 6 June 2016, even as Federal Reserve Chairwoman Janet Yellen said a rate-hike following an ugly jobs report late last week was still a possibility.
Closer home, foreign portfolio investors (FPIs) bought shares worth a net Rs 28.30 crore yesterday, 6 June 2016, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 230.63 crore yesterday, 6 June 2016, as per provisional data.
Among corporate news, Axis Bank announced after market hours yesterday, 6 June 2016, that it opened trade at London to celebrate the bank's landmark issuance of Asia's first internationally listed certified green bond on London Stock Exchange. The bond, certified by the Climate Bonds Standards Board, raised $500 million. It is the first green bond for Axis Bank within its $5 billion Medium Term Note (MTN) programme, which has additionally listed its entire MTN programme in London. The proceeds of the bond will be invested in green energy, transportation and infrastructure projects, reinforcing India's commitment to produce 175,000 megawatts (MW) of renewable power by 2022.
Interest rate sensitive banking, realty and auto stocks will be in focus as the RBI announces its monetary policy review today, 7 June 2016. Purchases of both residential and commercial property are largely driven by finance. Purchases of cars, utility vehicles and commercial vehicles are largely driven by finance.
Trading for the week started on a subdued note yesterday, 6 June 2016 as key benchmark indices edged lower as investors maintained caution ahead of the Reserve Bank of India's (RBI) monetary policy meeting. The Sensex fell 65.58 points or 0.24% to settle at 26,777.45, its lowest closing level since 1 June 2016.
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