Trends on SGX Nifty indicate a cautious opening for the index in India with a 15 points loss

The Indian stock market is expected to open on a flat note as trends on SGX Nifty indicate a cautious opening for the index in India with a 15 points loss.

The BSE Sensex rallied 382.95 points to 52,232.43 on June 3 driven by banking & financials, FMCG, and infra stocks. The Nifty50 climbed 114.20 points to 15,690.40.

US Markets

The Dow Jones Industrial Average fell 23.34 points, or 0.07%, to 34,577.04, the S&P 500 lost 15.27 points, or 0.36%, to 4,192.85 and the Nasdaq Composite dropped 141.82 points, or 1.03%, to 13,614.51.

Asian Markets

Asian stocks followed Wall Street lower on Friday as signs of a strengthening U.S. recovery boosted bets for higher inflation and an earlier tapering of Federal Reserve stimulus.

Japan's Nikkei fell 0.8% early in the Asian session, while MSCI's broadest index of Asia-Pacific shares outside Japan was off 0.3%.

SEBI raises foreign investment limit for mutual funds to $1 billion

With international diversification getting more recognition, and investor flows moving into such mutual fund (MF) schemes, the market regulator Securities and Exchange Board of India (SEBI) has now increased the overseas investment limit to $1 billion.

"Inflows into international schemes have increased quite a bit. Even when the limits were increased last year, some fund houses were apparently close to the enhanced limits," says Rajeev Thakkar, chief investment officer, at PPFAS MF.

Economy hit by COVID-19 second wave to start recovering from July, says Chief Economic Advisor

Chief Economic Advisor KV Subramanian on June 3 said that the second wave of COVID-19 has affected the momentum of economic recovery. However, he also pointed that he expects a recovery in the economy from July onwards.

"The second wave of COVID-19 has affected the momentum of economic recovery. We expect a recovery in the economy from July. Now, several states have started removing many restrictions and if we speed up the vaccination drive in our country, our economy will start recovering," Subramanian told ANI.

Department of Telecom issues guidelines for Rs 12,200-crore PLI scheme

The Department of Telecom on June 3 issued guidelines on implementation of production-linked incentive (PLI) schemes for equipment manufacturers in the sector. The scheme will be effective from April 1, 2021.

The applications will be shortlisted from highest to lowest on the basis of committed cumulative incremental investment during the scheme period.

LIC IPO: Govt to seek proposals from investment banks in June, says report

For the planned initial public offering (IPO) of the state-run Life Insurance Corporation of India (LIC), the central government is considering to seek proposals from investment banks in June, a report said on June 3.

People familiar to the development claimed that proposals could be sought from the investment banks "this month", the Bloomberg report said, adding that government will send invitations in the "coming weeks" for the share sale of the insurance company.

FII and DII data

Foreign institutional investors (FIIs) net acquired shares worth Rs 1,079.20 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 278.97 crore in the Indian equity market on June 3, as per provisional data available on the NSE.

Stocks under F&O ban on NSE

Four stocks - Bank of Baroda, Punjab National Bank, SAIL, and Sun TV Network - are under the F&O ban for June 4. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.