Market Ahead, June 6: All eyes on RBI MPC meet outcome

The Reserve Bank of India’s (RBI) June monetary policy decision, due later in the day, will be the biggest trigger for markets on Thursday. The RBI is widely expected to reduce the repo rate by 25 basis points (bps), a third in a row.

Moreover, oil price, movement of rupee against the US dollar and global developments will also be keenly watched.

Markets were shut on Wednesday on account of Eid-ul-Fitr. On Tuesday, the S&P BSE Sensex slipped 184 points to 40,084 levels while the broader Nifty50 index slumped 67 points to 12,022-mark. 

The rupee settled unchanged at 69.26 against the US dollar.

GLOBAL CUES

Asian shares got off to a hesitant start on Thursday with MSCI’s broadest index of Asia-Pacific shares outside Japan dipping 0.01 per cent in early trade. Japan’s Nikkei remained flat.

On Wall Street, indices ended in the green during the overnight trade on Wednesday. The Dow Jones Industrial Average added 207 points to close at 25,539 levels, while the Nasdaq gained 48 points to settle at 7,575-mark. The S&P500 added 23 points to close at 2,826 levels.

In the commodities market, US crude futures sank into a bear market on Wednesday, falling more than 20 per cent below their April peak, as global-growth worries gripped the financial markets.

At 6:45 am today, the US WTI was trading at $51.67 a barrel while Brent Crude futures were trading at $60.58 per barrel.