The domestic markets are expected to open on a flat memorandum on Thursday in the midst of a cautious mood for traders and investors. Analysts expect the consolidation phase to take place, because all eyes are now on the RBI policy result of tomorrow. The markets expect the central bank to announce an interest rate reduction of 25 BPS.
In the meantime, the HSBC India Services Purchasing Managers’ Index (PMI), compiled by S&P Global, at 58.8 in May, marginal of 58.7 in April. “The index is above the neutral 50 point, which separates the contraction of expansion for 46 months in a row,” said a note of AUM Capital.
In another positive prospect, Moody’s predicted that the Indian banking sector will broadly retain the quality of the assets, despite trade tensions that pose risks to the world economy. It is expected that the non-performance loan (NPL) ratio at the level of 2-3 percent will remain in the next 12 months.
Gift Nifty rules on Thursday at 24,740 in early deals, against the Nifty Futures closing of 24,729 on the NSE on Wednesday, which indicates a flat opening. However, shares in the Asia-Pacific region have risen marginally, even if the Japanese market drops slightly.
F&O Trading still presents a cautious prospect for Indian shares.
Dhupesh Dhameja, Derivatiats Resunies Analyst, Samco Securities, said ohPtions data remain caution. “Significant writing has been observed in near-the-money strikes, while placed writers shift lower, which implies a reduced trust on the bullish side,” he added. PUT-CALL ratio (PCR) saw a slight increase from 0.49 to 0.67, which suggests that some reduction of bearish pressure, although the sentiment remains to the disadvantage, he said on.
In the meantime, India Vix continued on the monetary policy result from Friday, and 4.89 percent fell to 15.74, which marked a decrease of almost 10 percent on two sessions. “This decrease in volatility points to reduced market anxiety, possibly an early sign of optimism that comes in,” said Dhameja.
According to analysts, the focus on a share -specific trade approach must remain
Published on June 5, 2025
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