Indices consolidate ahead of RBI policy outcome on June 6

After a blockbuster day, Indian market took a breather on June 4 but held on to crucial support levels towards the close of the trade. The S&P BSE Sensex closed above 40,000 while Nifty50 also managed to hold 12,000.

The final tally on D-Street – the S&P BSE Sensex fell 184 points to 40,083 while the Nifty50 closed 66 points lower at 12,021.

The S&P BSE IT index slipped over 1 percent on rise in rupee, the S&P BSE Healthcare index was down 1 percent and the S&P BSE Oil & Gas index closed 0.84 percent lower.

Buying was seen in capital goods, metal, and telecom sectors. The broader market fared slightly better than benchmark indices – the S&P BSE Midcap index closed 0.2 percent lower while the S&P BSE Smallcap index was down 0.19 percent.

Analysts advise investors to remain cautious ahead of the outcome of the MPC meeting on June 6. Indian market will remain shut on June 5 on account of Eid.

“We continue to maintain our cautious stance on the markets at higher levels in the near-term. The market participants would keep an eye on the RBI’s monetary policy as it would provide further direction to the markets,” Jayant Manglik, President – Retail Distribution, Religare Broking Ltd told Moneycontrol.

“While a rate cut cannot be ruled out, we don’t expect any aggressive cut and believe that the RBI would await more data on monsoon progress and inflation. Further, domestic macro data, global developments, especially with respect to US-China trade talks and movement of crude oil prices would continue to be on investor’s radar,” he said.

Top Sensex gainers include Yes Bank (up 2.2 percent), followed by NTPC (up 1.4 percent) and Vedanta (up 1.1 percent).

Top Sensex losers include Hero MotoCorp (down 3 percent), HCL Tech (down 2.5 percent) and TCS (down 2.5 percent).

Stocks in news:

Adani Ports and Special Economic Zone rose after the company announced buyback of up to 3.92 crore equity shares, or 1.89 percent equity, at maximum buyback price of Rs 500 per share, for an aggregate amount not exceeding Rs 1,960 crore.

PSU banks topped gainers list as most experts on the Street expect Monetary Policy Committee to go for a rate cut on June 6, the last day of the three-day meeting. The Nifty PSU bank index rose 0.25 percent.

Shares of HPCL and IOC fell 2 percent after the reports made rounds that the Director General (DG) of Goods and Services Tax (GST) Intelligence had booked cases against the oil majors for evasion of excise duty.

Shares of GE Power India added nearly 3 percent after the company bagged an order worth Rs 738 crore from Aravali Power Company Private Limited.

ICICI Bank shares fell around a percent after global rating agency Fitch downgraded the stock by a notch saying the financial health of the private sector banks has weakened.

Global update:

Europe trades lower: European markets are trading lower amid ongoing trade tensions seen across the globe.

Asian markets ended mixed. Shanghai Composite declined 0.96 percent at 2,862.28, Nikkei was flat at 20,408.5, while Kospi closed at 2,066.97.