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Indian markets ended higher for a second straight day on Thursday as investors were relieved from the likelihood of Narendra Modi being given a third term as the Prime Minister of the country. Today, markets are likely to get cautious start amid mixed global cues. Overnight rise in crude oil prices as well as US treasury yields likely to dent sentiments in the markets. Traders will be concerned as foreign institutional investors (FIIs) continued their selling streak, offloading shares worth Rs 6,867.72 crore. Now, all eyes will be on the Reserve Bank of India (RBI) MPC decision on interest rates, which is expected at 10:00 AM today. The MPC kickstarted its three-day meeting on Wednesday (June 5), in the immediate backdrop of Lok Sabha election results. The six-member committee is entrusted with the task of setting India’s benchmark interest rate, the repo rate. As per a private report, the central bank is likely to maintain the status quo on repo rate at 6.50 per cent and withdrawal of accommodation stance. Also, the six-member committee is likely to maintain status quo on repo rate. That apart, there will be some volatility in the markets news flow on the new government formation scheduled to take place on June 09, Sunday, owing to the weekend factor and portfolio allocations in the coalition government. Aviation industry stocks will be in focus as credit ratings agency Icra said domestic air passenger traffic grew 5.1 per cent year-on-year to an estimated 138.9 million in May and was significantly higher by around 14 per cent than pre-Covid levels. Icra also said the outlook on the Indian aviation industry is stable amid the continued recovery in domestic and international air passenger traffic with a relatively stable cost environment and expectations of the trend continuing in FY2025. There will be some reaction in stocks related to natural gas amid report that an increasing trend in gas prices and extended winter reducing gas-based power demand led to monthly gas volumes traded on the Indian Gas Exchange Limited (IGX) rising by 480 per cent to 4.92 million metric million British thermal units (mmBtu) in May. Traded volumes were up 99 per cent on a sequential basis. IGX is the only national-level gas exchange for the physical delivery of natural gas. Meanwhile, the Telecom Regulatory Authority of India (Trai) on Thursday issued a consultation paper on revising the National Numbering Plan to create a sustainable pool of new phone numbers for the country's nearly 1.2 billion mobile phone connections.

The US markets ended mostly in red on Thursday ahead of a key labor market report, retreating from record highs reached in the previous session. Asian markets are trading mixed on Friday as investors awaited key economic data from China and Japan, with markets also assessing the European Central Bank’s rate cut.

Back home, Indian equity benchmarks ended higher for a second straight day on Thursday as investors were relieved from the likelihood of Narendra Modi being given a third term as the Prime Minister of the country. Trading was volatile due to the expiry of weekly index options on the NSE. Markets witnessed a gap up opening and extended gains as the day progressed, as traders got support after India Ratings and Research (Ind-Ra) projects that India's current account balance (CAB) will achieve a surplus of approximately $6 billion (0.6 per cent of GDP) in the fourth quarter of the fiscal year 2024 (Q4FY24). This marks the first surplus since the first quarter of fiscal year 2022 (1QFY22), a significant turnaround from the previous quarter's deficit of $10.5 billion (1.2 per cent of GDP). Besides, a day after the 18th Lok Sabha elections delivered a surprising outcome, Fitch Ratings reinforced its ‘positive’ outlook on India's medium-term economic growth. Once again, this outlook has been supported by substantial government capital expenditure and strengthened corporate and bank balance sheets. However, markets trimmed most of their gains in afternoon deals, as traders got anxious with Moody's Ratings’ report stating that the BJP-led National Democratic Alliance's (NDA) slim majority in Lok Sabha may delay more far-reaching economic and fiscal reforms that could impede progress on fiscal consolidation. Traders also remained on sidelines ahead of Reserve Bank of India’s interest rate decision due on June 07. Investors were hoping that the central bank is likely to maintain the status quo on repo rate at 6.50%. But, markets regained some traction in final minutes of trade and ended the session on a strong note, with support from Realty, PSU and Industrials stocks. Finally, the BSE Sensex rose 692.27 points or 0.93% to 75,074.51, and the CNX Nifty was up by 201.05 points or 0.89% points to 22,821.40.

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