Strong jobs data lifted US indices close to their record highs on Friday. Asian shares tracking them this morning to trade higher in early trade. For Dalal Street, the upside might be limited ahead of a much-expected hawkish money policy from RBI post its 3-day policy review that kicks off today.

Let’s check out what all might matter to Dalal Street through Monday:

Singapore trading sets stage for flat start

Nifty futures on the Singapore Stock Exchange were trading 45.50 points, or 0.43 per cent, higher at 10,725, indicating a flat start for the Nifty50.

Tech view: Nifty forms indecisive Spinning Top

On the weekly scale, the index formed a ‘Spinning Candle’ with long shadows followed by a Dragon Fly Doji, which indicated a tough fight between the bulls and the bears, said Chandan Taparia of Motilal Oswal Securities. “The immediate trend is positive, but followup buying was missing at higher levels. The index has to hold above 10,650 to extend its gains towards 10,780 level, while downside support was seen at 10,620,” he said.

Asian shares edge higher

Asian shares edged up on Monday as strong US jobs data offset worries that tariff wars between the United States and the rest of the world could drag global economic growth lower, Reuters reported. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent while Japan’s Nikkei rose 1.0 per cent.

US stocks surged on Friday

On Wall Street on Friday, US technology shares soared, pushing up the Nasdaq Composite 1.51 per cent to 7,554, near its record closing high of 7,588 marked in March. In contrast, S&P 500, which rose 1.08 per cent on Friday, was still about 140 points off its record peak of 2,872 set in January as concerns about trade frictions curtailed many other shares, including industrials, Reuters reported.

RBI policy review to kick off today

Hardening domestic fuel prices are likely to weigh on the Reserve Bank’s rate setting panel, MPC, at its 3-day meet from June 4. This is the first time that the Monetary Policy Committee (MPC) will meet for three days due to “administrative exigencies”.

Smart investors shift to largecaps

The recent rise in the Bank Nifty to Nifty ratio bodes the first signs of warning for retail investors against complacency. The divergence indicates that smart investors are trimming their exposure to midcaps and small cap shares and are transferring funds to select large cap counters, which is keeping the indices within a narrow trading range.

FIIs sold Rs 203 cr worth of equities

Foreign portfolio investors (FPIs) sold Rs 203 crore worth of domestic stocks on Friday, provisional data available with BSE suggested. DIIs were net buyers to the tune of Rs 338 crore, data suggested.

Traders at play?

Delivery volumes on both Mumbai exchanges seem to indicate just that. On the NSE and BSE, delivery volumes in May dropped to 33.03 per cent, compared with the five-year average of 41.76 per cent, according to Bloomberg data. The combined volume on both exchanges (cash market) remained in line with the one-year average of $5.27 billion. The divergence suggests that traders are more active on the bourses these days than longer-term investors.

Sebi lens on FPIs under NRI control

The Securities and Exchange Board of India has asked custodians of foreign portfolio investors (FPIs) to identify offshore funds that are ‘controlled’ by nonresident Indians. Sebi, acting on the government’s instructions, has made it clear through fresh restrictions on investments and in subsequent meetings over the past few weeks that it’s not in favour of NRIs using FPI vehicles to trade on Indian stock exchanges.

ICICI Bank begins search for new chairman

The board of ICICI Bank has begun looking for a new chairman as the term of the incumbent, MK Sharma, expires at the end of this month and he may not want a second term. Veteran banker and former Bank of Baroda chairman and managing director MD Mallya is the frontrunner to succeed Sharma, two people aware of the development said. Mallya was appointed to the ICICI Bank board on May 29.

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