- Despite a substantial GDP growth rate of 7.4% for the Jan-March quarter and a 20% increase in Y-o-Y GST collection, markets remained bearish. FII pulled out around 6,500 crore from Indian markets on Friday, May 30th.
- All eyes are on the RBI MPC meeting on Friday, June 6th. Most analysts expect a 0.25 basis point rate cut; the occurrence of this event could turn near-term sentiments bullish.
- Indian markets are Sluggish today, with the Nifty trading at 24,716. While near-term sentiments turned bearish, long-term and short-term view remained bullish. Observe PCR closely, it’s trading almost below > 1, which is a bullish sentiment.
- We expect the Nifty to be range-bound, with support at 24,200 and Resistance at 25,200. However, overall sentiment, as per the RBI, remained positive, with strong corporate earnings and above-average expected rainfall.
- Metals stocks are under pressure, and the US President might double tariffs on imported steel and aluminium to 50% starting on June 4th to boost American steel production.
- IT stocks remain under pressure due to geopolitical issues like tariffs. Sector-specific companies still perform well; Capital Market stocks gained CDSL by 10%, CAMS by 4.5%, and MCX by 3.47%. Even Bank stocks gained, Union Bank up by 4.3%, PNB by 2.5%, and AUBANK by 3.7%.
- It’s more about being sector-specific for the short term till the global uncertainties are settled down. Ukraine and Russia’s War is still escalating, and US tariffs are unclear.
