Markets poised for a cautious start as GIFT Nifty ticks higher

On Thursday, markets traded in positive territory after witnessing volatility in the previous sessions. Sentiment improved following news reports that the Government plans provide tax benefits to foreign portfolio investments under government securities, a move aimed at attracting foreign capital inflows and supporting the rupee. Analysts say Indian equities are likely to remain range-bound in the near term amid a mix of domestic and global developments. Investors will closely monitor the outcome of the RBI’s Monetary Policy Committee meeting 10am on Friday, which is expected to provide important cues on the interest rate, inflation outlook, economic growth and currency stability.STATE OF THE MARKETS
GIFT Nifty (Earlier SGX Nifty) signals a muted start
GIFT Nifty on the NSE IX traded higher by 12.50 points, or 0.05 per cent, at 23,551, signaling that Dalal Street was headed for a muted start on Friday.

• Tech View: Sentiment is likely to stay uncertain with a bearish bias in the short term, as long as the index remains below 23,500. On the other hand, a decisive move above 23,500 could trigger a rally towards 23,700. On the downside, immediate support is placed at 23,370; a decisive breach below this level may drag the Nifty towards 23,200 and lower levels.
• India VIX: India VIX, which is a measure of the fear in the markets, fell 2.4% to settle at 15.88 levels.

US stocks end higher
Wall Street ended higher on Thursday as signs of progress toward resolving the Iran conflict lifted investor sentiment. However, weaker-than-expected results from Broadcom triggered a selloff in semiconductor stocks, limiting gains in the Nasdaq.

Asian stocks decline
Asian stocks declined along with US equity-index futures as enthusiasm for the artificial intelligence trade cooled after driving markets to record highs this year.

• S&P 500 futures fell 0.5% as of 9:38 a.m. Tokyo time
• Hang Seng futures rose 0.3%
• Japan’s Topix was little changed
• Australia’s S&P/ASX 200 fell 0.6%
• Euro Stoxx 50 futures fell 0.2%

Oil little changed
Oil prices were little changed on Friday following sharp declines in the previous session, with prospects dimming for a near-term end to the U.S.-Israeli war with Iran after the ‌Hezbollah militia rejected a ⁠new ⁠ceasefire in Lebanon.

Gold slips
Gold prices edged lower on Friday, and were set for a weekly loss, as tensions in the Middle East dampened hopes for a U.S.-Iran peace deal amid rising inflation and rate-hike fears.Yen gains
The Japanese yen is testing the 160 barrier on Friday, prompting pushback from Japanese officials, while the U.S. dollar is on track for a weekly gain as Gulf tensions fuel safe-haven flows.

Stocks in F&O ban today

1) Amber Enterprises
2) Kaynes

Securities in the ban period under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.

Rupee
The rupee rose 2 paise to settle at 95.74 against the US dollar on Thursday, as the global crude oil prices eased and market participants keenly awaited the RBI’s MPC decision on June 5.

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