IGI Logo

Indian markets could open higher, in line with largely positive Asian markets today and US markets that were flat on Wednesday..…HDFC Securities

U.S. stock benchmarks on Wednesday finished the session with slight gains, with the main action focused on meme stocks, as a report on business conditions across Federal Reserve districts indicated that economic growth was picking up in America in the recovery phase of the COVID pandemic.

However, the account of business conditions signaled shortages in labor that provide further evidence of inflation pressures percolating in the economy. Investors are now eagerly awaiting a Friday report on employment for May, which could be a more significant catalyst for markets.

The Fed’s Beige Book, an account of business conditions in the central bank’s 12 districts, didn’t offer any major surprises for investors, but it did point to inflation pressures continuing to build as both input and selling prices climb. Patrick Harker, who heads the Federal Reserve Bank of Philadelphia, said it may be time to consider “tapering,” or reducing the size of the Fed’s current $120 billion-a-month bond purchasing program.

China’s services sector expansion slowed in May, a private sector survey showed on Thursday, with weaker overseas demand and increased costs putting pressure on businesses. The Caixin/Markit services Purchasing Managers’ Index (PMI) fell to 55.1 in May, down from 56.3 in April. The Caixin China General Composite PMI came in at 53.8 in May, weaker than 54.7 the previous month.

The final au Jibun Bank Japan Services Purchasing Managers’ Index (PMI) for May slumped to a seasonally adjusted 46.5, down three points from the prior month’s final level of 49.5, but up from a flash reading of 45.7. The final au Jibun Bank Flash Japan Composite PMI, which is calculated using both manufacturing and services, was 48.8 in May, slipping back into contraction after expanding in the previous month.

Asian shares were largely up and a touch below a recent threemonth top on Thursday.

Indian benchmark equity indices recovered from day’s lows and ended almost flat on June 02. At close, the Nifty was up 1.30 points or 0.01% at 15576.20. Reliance extended its winning streak to six days.

Nifty made a lower top, lower bottom on June 02 compared to the previous session after a gap of 8 sessions of continuous higher tops higher bottoms. However it ended marginally in the positive. Range Bound moves could continue in the markets over the next 1-2 days although the advance decline ratio remains positive.15470-15680 is the band for the Nifty in the near term.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer