1268: Marketbuzz Podcast with Kanishka Sarkar: Sensex, Nifty 50 headed for muted start, all eyes on RBI MPC policy

Welcome to CNBC-TV18’s Marketbuzz Podcast, here are all to updates ahead of the trading session of June 7

-Apart from emerging details on government formation following the 2024 election results, all eyes will be on the Reserve Bank of India's Monetary Policy announcement

-RBI Monetary Policy Committee (MPC) is expected to remain on an extended pause and cut interest rates in October. This MPC meeting comes at a crucial time, falling between the recently concluded Lok Sabha elections and the upcoming full budget in July.

-This meeting follows a strong GDP growth report for the March quarter and persistent concerns about food inflation. The US Federal Reserve is not inclined to cut rates at this time. Given these factors, the Reserve Bank of India’s MPC is expected to adopt a wait-and-watch approach, with no immediate reason to cut rates.

-The market is set to post gains in a week in which it saw its biggest single-day drop in four years and investors wealth worth ₹30 lakh crore is wiped out. The recovery in the Nifty over the last two sessions has been anything but smooth.

-The weekly expiry for the Nifty turned out to be a choppy one and even if the index ended above the mark of 22,800, it closed trade 90 points off the day's high. This choppiness may persist until more clarity on government formation and who gets which ministry emerges. The fact that this will also be a coalition government, will be enough to keep the uncertainty lingering till a complete picture emerges.

-Today the focus will be on whether the RBI MPC revises either of the GDP or the inflation estimates for financial year 2025.

-On the global front, Asian stocks rose this morning as Wall Street wavered ahead of a key US jobs reading that’s likely to guide the Federal Reserve’s policy outlook. Australian and South Korean stocks rose and equities in Japan were steady, while futures in Hong Kong pointed higher. The S&P 500 closed little changed, having stalled near all-time highs, as traders refrained from big bets ahead of US non-farm payrolls data. Contracts for US shares were steady in early Asian trading. US Treasuries were steady while Australian yields edged lower.

-Back home, the GIFT Nifty was trading flat, indicating a muted start for the Indian market ahead of the MPC meet outcome. 

-Stocks to watch: Wipro, ICICI Bank, Tata Chemicals, PB Fintech, Bajaj Finance, Bajaj Finserv, RVNL, Welspun Enterprises, Hero MotoCorp, Muthoot Microfinance

Tune in to the Marketbuzz Podcast for more cues