Sensex, Nifty Set For Positive Start

(RTTNews) - Indian shares may open on a positive note Wednesday as new data portrayed a healthy U.S. labor market despite increased risks from trade policy.

Investors also eagerly await 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.

Metal stocks could be in focus as U.S. President Donald Trump signed executive order doubling tariffs on imported steel and aluminum to 50 percent, citing national security risks and unfair pricing.

In another development, U.S. Treasury Secretary Scott Bessent said Beijing has a choice on whether or not to be a dependable partner with the rest of the world.

Bessent noted that the country needs to shift to a consumption-led economy to stabilize global economic imbalances.

He suggested that fiscal stimulus and a focus on consumer spending could stabilize China's economy, rather than exporting deflation and surplus products worldwide.

In another development, the Office of the U.S. Trade Representative has reportedly sent letters to trading partners to remind them of an upcoming deadline in tariff negotiations.

Benchmark indexes Sensex and Nifty fell around 0.8 percent and 0.7 percent, respectively on Tuesday to extend losses for a third straight session due to heightened geopolitical and trade tensions.

The rupee declined by 21 paise to close at 85.60 against the U.S. dollar, pressured by a stronger greenback and persistent foreign fund outflows.

Foreign Institutional Investors (FIIs) offloaded shares worth Rs. 2,854 crores on Tuesday while domestic Institutional Investors (DIIs) were net buyers to the extent of Rs. 5,908 crores, according to provisional data.

Asian markets were mostly higher this morning, the dollar weakened after rising in the previous session and gold edged up to trade near $3,370 per ounce levels while oil dipped slightly after gaining for two days.

U.S. stocks closed higher overnight after the release of better-than-expected JOLTs Job Openings report.

The tech-heavy Nasdaq Composite and the S&P 500 gained 0.8 percent and 0.6 percent, respectively to reach their best closing levels in over three months as investors awaited new developments on tariffs. The narrower Dow rose half a percent.

European stocks also advanced on Tuesday after data showed Eurozone inflation fell below the ECB's 2 percent target in May for the first time in seven months, boosting expectations for another interest rate cut this week.

The pan European STOXX 600 finished marginally lower. The German DAX climbed 0.7 percent, France's CAC 40 rose 0.3 percent and the U.K.'s FTSE 100 edged up by 0.2 percent.