Before Market Opens: 9 essential things to know at 9 am on June 7, 2024

Before Market Opens: Indian markets are likely to open on a positive note on Friday extending gains for the third straight session as investors await the Reserve Bank of India’s (RBI) monetary policy decision. Meanwhile, Asian markets traded mixed, while the US markets also closed mixed overnight dragged by technology and industrial stocks. Gift Nifty was also trading 27 points higher, indicating a positive start for benchmark Nifty. Let's take a look at some key cues before the market opens today:

The US stock market ended mixed on Thursday amid selling in technology and utility stocks, and as investors awaited the crucial US nonfarm payrolls report later today. The Dow Jones Industrial Average rose 78.84 points, or 0.20%, to 38,886.17, the S&P 500 lost 1.07 points, or 0.02%, to 5,352.96 and the Nasdaq Composite lost 14.78 points, or 0.09%, to 17,173.12.

Asian stocks are set to snap a two-week losing streak on Friday after major central banks kick-started their rate easing cycle this week, adding to expectations the U.S. Federal Reserve could soon follow suit. The European Central Bank (ECB) delivered a well-telegraphed rate cut on Thursday, a day after the Bank of Canada became the first G7 nation to trim its key policy rate. MSCI's broadest index of Asia-Pacific shares outside Japan tracked world stocks higher and rose 0.3% in early Asia trade. The index was headed for a weekly gain of nearly 3%. Hong Kong's Hang Seng Index similarly ticked up 0.14%, while Chinese blue chips edged 0.23% higher. Japan's Nikkei fell 0.16%.

Reserve Bank of India (RBI) Governor Shaktikanta Das will unveil the second monetary policy of the financial year 2024-25 today (June 7)—the first one after the high-stakes Lok Sabha election results. According to a majority of analysts and economists on D-Street, the RBI would keep its key repo rate unchanged at 6.50 percent at the conclusion of the June 5-7 MPC meeting, continuing its stance of ‘withdrawal of accommodation’. 

On Thursday, the Indian stock market indices ended higher amid hopes of political stability and policy continuity after the Lok Sabha election 2024 results. The Sensex gained 692.27 points, or 0.93%, to close at 75,074.51, while the Nifty 50 settled 201.05 points, or 0.89%, higher at 22,821.40.

At 8:15 am, Gift Nifty was trading 27 points or 0.1 percent higher at 22,918, indicating a positive opening for the Indian markets.

The European Central Bank delivered its first interest rate cut since 2019 on Thursday, citing progress in tackling inflation even as it acknowledged the fight was far from over. ECB officials led by President Christine Lagarde cut the key deposit rate by 25 basis points (bps) to 3.75% from a record-high of 4.0%.

Gold Prices

Gold prices inched lower on Friday but were heading for their first weekly gain in three, with investors waiting for U.S. non-farm payrolls data later in the day for clues on the outlook for interest rate cuts. SSpot gold was down 0.2% at $2,371.04 per ounce, as of 0144 GMT. Bullion gained about 2% for the week so far.

The rupee depreciated 9 paise to settle at 83.53 against the US dollar on Thursday due to foreign capital outflows and rising crude oil prices in international markets. Forex traders said a weak American currency and firm trend in the equity markets supported the local currency even as investors remained concerned ahead of the RBI's monetary policy decision to be announced on Friday. At the interbank foreign exchange market, the local unit opened at 83.40 and touched the intra-day low of 83.53 against the greenback during the session.

Foreign institutional investors (FIIs) continued their selling on third consecutive session on June 6 as they offloaded Indian equities worth ₹6,867.7 crore , while domestic institutional investors bought equities worth ₹3,718.38 crore on same day.