Sensex, Nifty Set For Muted Start

(RTTNews) - Indian shares look set to open largely unchanged on Thursday as investors look ahead to the Reserve Bank of India's (RBI) monetary policy decision on June 6, with the central bank widely expected to cut interest rates by 25 basis points for the third consecutive time.

Escalating geopolitical tensions may keep investors on edge after U.S. President Donald Trump announced on Truth Social that Russia will respond to Ukraine's recent attacks.

Benchmark indexes Sensex and Nifty eked out modest gains on Wednesday after three straight sessions of losses due to heightened trade and geopolitical tensions.

Asian markets were mostly higher this morning, the dollar softened and gold was little changed above $3,370 per ounce.

Oil held steady after falling in the previous session following a build in U.S. gasoline and diesel inventories, and amid signs Saudi Arabia is seeking another big production increase at next month's OPEC meeting.

U.S. stocks fluctuated before ending mixed overnight while Treasury yields dipped as disappointing economic data raised concerns about the economic outlook but reinforced speculation that the Federal Reserve will cut interest rates at least twice this year.

Private sector jobs increased by just 37,000 in May — the slowest pace in more than two years, payroll processor ADP said.

"ADP NUMBER OUT!!! 'Too Late' Powell must now LOWER THE RATE. He is unbelievable!!!," Trump said in a post on Truth Social.

Another report showed the U.S. services sector contracted for the first time in nearly a year in May and businesses paid higher prices for inputs, raising fresh stagflation concerns.

The Dow slid 0.2 percent to snap a four-day losing streak, while the S&P 500 finished marginally higher and the tech-heavy Nasdaq Composite gained 0.3 percent.

European stocks closed higher on Wednesday after EU trade chief said talks with the U.S. were advancing in the right direction.

The pan European STOXX 600 advanced half a percent. The German DAX climbed 0.8 percent, France's CAC 40 rose half a percent and the U.K.'s FTSE 100 added 0.2 percent.