Indian equity benchmarks set to open higher on global tailwinds, RBI policy support
June 9 (Reuters) - Indian benchmark indexes are poised to open higher on Monday, buoyed by positive global cues, including strong U.S. jobs data and signs of progress in India-U.S. trade talks, as well as the Reserve Bank of India's (RBI) policy support.
The Gift Nifty futures were trading at 25,179 as of 7:35 a.m. IST, indicating that the benchmark Nifty 50 (.NSEI), opens new tab will open above Friday's close of 25,003.05.
The Nifty 50 and BSE Sensex (.BSESN), opens new tab rose about 1% each on Friday after the RBI cut the repo rate by 50 basis points (bps), surpassing expectations of a 25 bps cut, and reduced the cash reserve ratio (CRR) for banks by 100 bps, signaling stronger monetary support.
"The RBI's measures came as a positive surprise for equity markets as there will be greater impetus to growth and there could be faster pick up in rate-sensitive sectors," said Sandeep Bagla, CEO of Trust Mutual Fund.
Positive sentiment also stemmed from global markets. The MSCI Asia ex-Japan index (.MIAPJ0000PUS), opens new tab rose 0.5%, tracking Wall Street's gains on Friday after a robust U.S. jobs report eased concerns over economic momentum. Treasury yields edged higher in response.
Meanwhile, trade talks between Indian and U.S. officials are progressing, with both sides seeking consensus on tariff cuts in the farming and auto sectors in a bid to finalise an interim deal before a July 9 deadline, Indian government sources said.
Foreign portfolio investors (FPI) and domestic institutional investors (DII) were both net buyers of Indian shares on Friday, purchasing shares worth 10.1 billion rupees ($118 million) and 93.42 billion rupees, respectively.
** Mahindra & Mahindra's (MAHM.NS), opens new tab total production jumps 27.6% year-on-year in May and total exports soar 36.7%.
** Multi Commodity Exchange of India (MCEI.NS), opens new tab receives SEBI approval to launch electricity derivatives
** Rites (RITS.NS), opens new tab signs deal with Hindustan Copper (HCPR.NS), opens new tab to develop a critical mineral supply chain
** Garden Reach Shipbuilders (GRSE.NS), opens new tab signs MoU with Sweden-based Berg Propulsion for marine propulsion systems and Denmark-based SunStone for partnership in expedition cruise vessels
($1 = 85.7590 Indian rupees)
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