Trading in Singapore Nifty futures suggest a higher start following the previous session's selloff. That said, investors await wholesale inflation data due out later in the day to see if there is headroom for further monetary easing. Meanwhile, the RBI is unlikely to take any view based on April trade data as the surge in gold imports is more of a one-off due to frontloading of demand given the recent plunge in gold prices, experts said.
Benchmark indexes Sensex and the Nifty dropped more than 2 percent each on Monday after data showed India's trade deficit widened in April to $17.8 billion from $14 billion last year due to a massive surge in gold imports.
Weak global cues and a sharp fall in the rupee to a more than two-month low also prompted traders to take some profits off the table after benchmark indexes Sensex and Nifty closed at their 28-month high during a special trading session on Saturday. However, according to provisional data, foreign institutional investors remained net buyers yesterday, investing a net of Rs 244 crore.
The rupee recovered sharply to close up seven paise at 54.73 against the dollar yesterday after the RBI imposed restrictions on import of the yellow metal by banks with immediate effect.
In corporate news, Ranbaxy Laboratories will be in focus after its U.S. subsidiary agreed to pay $500 million in fines to resolve claims that it sold adulterated drugs.
The RBI probing allegations of money laundering found that there are various discrepancies, including fictitious PAN and non-compliance of KYC norms by banks.
Tata Steel said it will book a $1.6 billion goodwill impairment charge for the loss of value of Tata Steel Europe on account of a weak macroeconomic environment in Europe.
Reliance Communication said it would migrate its CDMA voice customers to GSM technology platform to free up spectrum for more and more data usage.
FMCG major Nestle India reported a consolidated net profit of Rs 279 crore for the first quarter ended March, up 1.2 percent from Rs 275 crore in the corresponding period last year.
Asian Markets
Asian stocks are trading mostly higher as better-than-expected U.S. retail sales data boosted optimism the U.S. economy is gaining traction. The markets in Australia, Hong Kong, Japan, Singapore, South Korea and Taiwan are up between 0.1 percent and 1 percent, while China's Shanghai Composite index is losing 0.8 percent.
U.S. And European Markets
U.S. stocks paused for breath after recent record gains overnight, with a report from the Commerce Department showing an unexpected increase in retail sales in April helping to limit the downside. The Dow slid 0.2 percent, but the tech-heavy Nasdaq and the S&P 500 edged up marginally.
Retail sales inched up by 0.1 percent in April following a revised 0.5 percent decrease in March. The modest increase in sales surprised economists, who had expected sales to dip by 0.3 percent compared to the 0.4 percent drop originally reported for the previous month. Core retail sales, which exclude sales of autos, building materials, and gas, rose by 0.5 percent in April compared to an upwardly revised 0.1 percent increase in March.
The European markets also turned in a mixed performance on Monday, as investors digested weaker-than-expected Chinese industrial production data and remained wary ahead of a meeting of eurozone finance ministers in Brussels to discuss review programs for Spain and Cyprus. The German DAX and the U.K.'s FTSE 100 posted modest gains, while France's CAC 40 fell 0.2 percent and the SMI of Switzerland declined 0.4 percent.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.