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Indian markets ended near intraday high levels on Wednesday amid buying by foreign portfolio investors (FPI). Today, domestic indices are likely to get cautious start amid negative cues from global markets and ahead of the Reserve Bank of India's (RBI) monetary policy outcome later in the day. There are expectations that the six-member Monetary Policy Committee (MPC) of the RBI is likely to keep the policy repo rate unchanged. This was the second bi-monthly monetary policy meeting of FY24 which began on June 6. There will be some cautiousness as the Organization for Economic Co-operation and Development (OECD) has marginally raised its 2023-24 (FY24) growth forecast for India to 6 per cent, from 5.9 per cent estimated earlier, while maintaining that weak global demand and the effect of monetary policy tightening will constrain growth in the world’s fifth-largest economy in the current fiscal year. Though, some support may come with foreign fund inflows in the markets. provisional data from the National Stock Exchange showed that foreign institutional investors (FIIs) bought shares worth Rs 1,382.57 crore on June 7. Traders may take note of report that the next Goods and Services Tax (GST) Council meeting is likely to approve the number of appellate tribunal benches to be formed in each state, the rules for appointments to the benches, and other procedural issues. Meanwhile, a private report noted that the Reserve Bank of India (RBI)’s decision to allow banks having a presence in the International Financial Services Centre (IFSC) to offer non-deliverable derivatives contracts (NDDC) to domestic non-retail segments will boost INR trade volumes. Shares of rate sensitive stocks likely banking and financial services, automobiles, real-estate, and consumer durables will be in focus as the central bank announces interest rate stance. Oil & gas sector stocks will be in limelight after oil prices climbed overnight as Saudi Arabia’s plans for deep output cuts more than offset demand woes stemming from rising U.S. fuel stocks and weak Chinese export data.

The US markets ended mostly in red on Wednesday as investors await the next market catalyst. Asian markets are trading mostly lower on Thursday as Wall Street saw a pause in its market rally and the broad market index fluctuated near its highest closing levels since August 2022.

Back home, Indian equity benchmarks ended higher by over half percent on Wednesday, aided by Telecom, Utilities and Metal stocks ahead of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) meeting outcome on June 8.  Key indices made an optimistic start and stayed in green for whole day as provisional data from the National Stock Exchange shows foreign institutional investors (FIIs) bought shares worth Rs 385.71 crore on June 6. Traders took support with Credit rating agency ICRA in its latest report stating that India Inc. have witnessed sequential expansion in margins in Q4 FY2023, with a YoY increase of 11.4%, while the sequential revenue growth was relatively moderate at 5.2%. Markets extended gains in late afternoon deals, as the sentiments were further supported with the World Bank stating that India would remain the fastest-growing economy in terms of both aggregate and per capita gross domestic product (GDP) among the largest emerging market and developing economies in FY24.  Some solace also came amid a private report stating that the Reserve Bank of India is expected to pause for a second straight month as inflation eases and market watchers are looking for cues of a shift in policy stance to support growth in Asia’s third largest economy. Adding to optimism, Union Minister for Law and Justice Arjun Ram Meghwal has said that the government has undertaken several steps to strengthen the judiciary and alternate dispute resolution mechanism which will act as an incentive to foreign investors and help take India-UK relations to new heights. Finally, the BSE Sensex rose 350.08 points or 0.56% to 63,142.96 and the CNX Nifty was up by 127.40 points or 0.68% to 18,726.40.

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