Daily Newsletter
NSE Intra-day chart (03 June 2021)
Top Gainers
Company NameClose% Change
Top Losers
Company NameClose% Change
World Indices
IndicesLast Trade% Change
IndicesLast Trade% Change
FII Activity(Rs. Cr)
DateMarketGross PurchaseGross SalesNet Change
Market Commentary 04 June 2021
Markets likely to open negative ahead of RBI's monetary policy outcome


Indian equity benchmarks ended at record highs on Thursday after showing lacklustre trend in the previous two sessions, as firm global cues, a consistent fall in daily Covid-19 cases, and a stronger rupee kept market mood upbeat. The benchmarks staged a gap up opening, as traders took support with Minister of State for Finance Anurag Thakur's statement that Indian economy is resilient and will rebound in the times ahead based on consistent reforms that have ensured strong fundamentals through these difficult times. Thakur has pointed out that consistent reforms and strong fundamentals have ensured that India had a swift rebound from a contraction of 24.4 percent in the first quarter to a growth of 1.6 percent in the fourth quarter of FY 2020-21. Benchmarks cut some of their gains during afternoon session after the survey report indicated that India's service sector fell into contraction territory in the month of May, with the intensification of the COVID-19 crisis causing renewed declines in new business and output. As per the survey report, the seasonally adjusted Nikkei Services Business Activity Index fell to 46.4 in May from 54.0 in April. Further, the Nikkei India Composite PMI Output Index -- which measures both manufacturing and services - also eased to 48.1 in May from 55.4 in April. However, key gauges regained traction, taking support from Credit ratings agency Crisil in its latest report stated that the expanded Emergency Credit Line Guarantee Scheme (ECLGS) will help businesses like hotels, civil aviation and tour operators, which are the hardest hit by the second wave of COVID-19. It will also support build-up of healthcare infrastructure, mainly oxygen availability, in tier-2 and beyond cities and the hinterland. Traders took a note of Assocham's report in which it has recommended the government to extend relief measures such as regulatory easing, wage support, and interest subsidy for the Micro Small and Medium Enterprises (MSMEs) which are reeling under the severe impact of COVID-19.  As the states are in the process of easing lockdowns, it said the trade and industry would need all-around support to pick up their business thread again. Investors also eyed the Reserve Bank of India's meeting on Friday where it is expected to keep its key rate at a record low but reaffirm its commitment to provide adequate liquidity as the country grapples with a deadly second wave of the COVID-19 pandemic. Finally, the BSE Sensex rose 382.95 points or 0.74% to 52,232.43, while the CNX Nifty was up by 114.15 points or 0.73% to 15,690.35.  


The US markets ended lower on Thursday as a batch of upbeat jobs data led to renewed concerns about the outlook for monetary policy. Payroll processor ADP released a report showing private sector employment in the US spiked by much more than expected in the month of May. ADP said private sector employment soared by 978,000 jobs in May after surging by a downwardly revised 654,000 jobs in April. Street had expected private sector employment to increase by 650,000 jobs compared to the addition of 742,000 jobs originally reported for the previous month. Meanwhile, a separate report from the Labor Department showed a modest decrease in first-time claims for US unemployment benefits in the week ended May 29th. The report said initial jobless claims dipped to 385,000, a decrease of 20,000 from the previous week's revised level of 405,000. Street had expected jobless claims to edge down to 395,000 from the 406,000 originally reported for the previous week. On the sector front, significant weakness was visible among airline stocks, as reflected by the 3.3 percent nosedive by the NYSE Arca Airline Index. Housing, semiconductor and steel stocks also saw considerable weakness on the day, while networking stocks bucked the downtrend.


Crude oil futures ended marginally lower on Thursday after two straight days of strong gains, amid traders reacted to inventory data and weighed energy demand prospects. The Energy Information Administration reported that US crude inventories fell by 5.1 million barrels for the week ended May 28. The data showed gasoline inventories increased by 1.5 million barrels last week, while distillate stockpiles went up by 3.7 million barrels. As per data released by the American Petroleum Institute, US crude oil stocks fell by 5.36 million barrels in the week ended May 28th compared to a drop of 0.439 million in the previous week and much higher than the market expectations of a 2.114 million barrels. Crude oil futures for July lost 2 cents or 0.03 percent to settle at $68.81 barrel on the New York Mercantile Exchange. August Brent crude fell 4 cents or 0.06 percent to settle at 71.31 a barrel on London's Intercontinental Exchange.


Indian rupee ended stronger against dollar on Thursday due to fresh selling of the American currency by banks and exporters. The rupee also derived its strength from strong gains in the local equity markets. Sentiments got boost as India's COVID cases are beginning to decline and several states are announcing a gradual easing of restrictions. Some support also came in as Minister of State for Finance Anurag Thakur said the Indian economy is resilient, and will rebound based on reforms that have ensured strong fundamentals. Traders seem to have overlooked report that India's services sector activities slumped into contraction territory for the first time in eight months, amid renewed decline in new work intakes due to the escalation of the pandemic and the reintroduction of restrictions. The seasonally adjusted India Services Business Activity Index fell to 46.4 in May, down from 54.0 in April. On the global front; dollar rose on Thursday as traders awaited a batch of U.S. economic data that could set the tone at central bank meetings later this month. Finally, the rupee ended 72.91, stronger by 18 paise from its previous close of 73.09 on Wednesday.


The FIIs as per Thursday's data were net buyer in equity segment, while net seller in debt segment. In equity segment, the gross buying was of Rs 11634.78 crore against gross selling of Rs 10542.34 crore, while in the debt segment, the gross purchase was of Rs 415.72 crore with gross sales of Rs 758.03 crore. Besides, in the hybrid segment, the gross buying was of Rs 6.25 crore against gross selling of Rs 29.06 crore.


The US markets ended lower on Thursday on wary about the Federal Reserve potentially shifting monetary policy. Asian markets are trading lower in early deals on Friday following the negative cues overnight from Wall Street as signs of a strengthening US recovery boosted bets for higher inflation and an earlier tapering of Federal Reserve stimulus. Indian equity markets ended with strong gains on Thursday as fall in daily coronavirus cases. Today, the markets are likely to make pessimistic start following negative cues from global markets. Traders will be eyeing the RBI's monetary policy outcome that will be announced today. The Reserve Bank of India's Monetary Policy Committee began its bi-monthly deliberations on June 2, amid expectations of keeping a status quo on repo and reverse repo rates due to uncertainty over the impact of the second COVID-19 wave. However, some support may come later in the day as union Minister Anurag Singh Thakur said financial inclusion is a top priority for the government and that promoting financial education would help in realising the collective potential. Traders may also get some encouragement with Commerce Secretary Anup Wadhawan's statement the time frame to resume negotiations for the stalled free trade agreement with the European Union (EU) and to initiate fresh talks for a pact with the UK will be very early and the talks will start soon after completion of the preparatory work. He expressed hope that within this year, or close to the end of the year, the negotiations with both the regions should start. Meanwhile, Chief Economic Advisor KV Subramanian said that the second wave of COVID-19 has affected the momentum of economic recovery. However, he also pointed that he expects a recovery in the economy from July onwards. There will be some buzz in banking industry stocks as public sector banks have been at the forefront for advancing loans under the PM Street Vendors Atmanirbhar Nidhi (PM SVANidhi), and have sanctioned 2.316 million loans, about 95% of total loans sanctioned under this scheme as on May 31. Aviation stocks will be in focus as Domestic air traffic nosedived to 19.20 lakh passengers in May from around 57.3 lakh in April, registering a sharp 65-67 per cent month-on-month contraction on account of the second wave of the pandemic. With such a sharp fall, the domestic passenger traffic reached lower than the June-July 2020 levels.


Support and Resistance: NSE (Nifty) and BSE (Sensex)



Previous close



NSE Nifty




BSE Sensex





Nifty Top volumes





Previous close (Rs)


Support  (Rs)


Resistance (Rs)


(in Lacs)

Oil & Natural Gas Corporation










State Bank of India





Adani Ports And Special Economic Zone





Tata Motors





  • Wipro has sold its entire stake in Denim Group for a consideration of $22.42 million (about Rs 160 crore). Consequent to the sale, Wipro does not hold any stake in Denim Group.
  • Reliance Industries' telecom arm -- Jio is accelerating the rollout of digital platforms and indigenously-developed next-generation 5G stack.
  • ICICI Bank has tied up with SWIFT to offer a facility that helps overseas partner banks to send instant remittances on behalf of their customers to the beneficiary in India.
  • HDFC Bank has declared the availability of Mobile Automated Teller Machines in 50 cities across India to assist customers during the lockdown.
News Analysis