Snapping three days winning streak, Indian equity benchmarks ended the Wednesday's trade with a cut of around half a percent, as traders remained on sidelines ahead of macro-economic data. Retail inflation and industrial production data for May and April, respectively, due to be released later in the day. There is expectation that retail inflation likely accelerated to a seven-month high in May on rising food prices. Traders also remained anxious with former Chief Economic Advisor Arvind Subramanian's statement that country's growth has been overestimated by nearly 2.5 per cent under both UPA and NDA rule. The actual growth is likely to be lower, at nearly 4.5 per cent, down from 7 per cent between 2011-12 and 2016-17. Market participants paid no heed to the Reserve Bank of India's (RBI) statement that it will infuse Rs 15,000 crore into the financial system through bond purchases on June 13. Based on an assessment of prevailing liquidity conditions and also of the durable liquidity needs going forward, the RBI has decided to conduct purchase of (six) Government securities under OMOs through multi-security auction using the multiple price method. Meanwhile, State Bank of India (SBI) in its research report Ecowrap has underlined RBI's new guidelines to deal with bad loans will provide lenders the headroom and flexibility for resolution of large ticket stressed asset cases under the Insolvency and Bankruptcy Code (IBC). Finally, the BSE Sensex declined 193.65 points or 0.48% to 39,756.81, while the CNX Nifty was down by 59.40 points or 0.50% to 11,906.20.

The US markets ended lower on Wednesday as investors continued to focus on US-China trade. The US-China trade conflict largely took a back seat to President Donald Trump's threatened tariffs on Mexico but has moved back into the spotlight ahead of the G20 summit later this month. Trump suggested he has no interest in negotiating unless China agrees to come back to the table to discuss previous terms of a deal he has claimed was nearly complete. Trump said he expects to meet with Chinese President Xi Jinping at the G20 summit and has warned that he will impose new tariffs on Chinese goods if his counterpart does not attend. However, downside remained capped with report showing tame inflation has further fueled expectations that the Federal Reserve will cut interest rates in the near future. The Labor Department said its consumer price index inched up by 0.1% in May after rising by 0.3% in April. Excluding food and energy prices, core consumer prices also edged up by 0.1% for the fourth consecutive month. The report also showed a slowdown in the annual rate of consumer price growth, with the headline index up by 1.8% year-over-year in May compared to the 2.0% increase in April. The annual rate of core consumer price growth also slowed to 2.0% in May from 2.1% in the previous month. Dow Jones Industrial Average declined 43.68 points or 0.17 percent to 26004.83, Nasdaq fell 29.85 points or 0.38 percent to 7792.72 and S&P 500 was down by 5.88 points or 0.20 percent to 2879.84.

Crude oil futures ended sharply lower on Wednesday as US crude supplies rose a second week in a row and concerns about energy demand persisted on the back of growing US-China trade tensions. The Energy Information Administration (EIA) reported that US crude supplies climbed by 2.2 million barrels for the week ended June 7. Analysts polled by S&P Global Platts expected a modest increase of 80,000 barrels for crude stocks, on average. The American Petroleum Institute on Tuesday reported a nearly 4.9 million-barrel rise. Trade tensions continue to be a major concern, linked to a potential slowdown in energy demand growth. President Donald Trump said he has got a feeling the US and China will reach a trade deal, but held out the possibility of more tariffs on Chinese goods without one. Benchmark crude oil futures for July dropped $2.13 or 4 percent to settle at $51.14 a barrel on the New York Mercantile Exchange. August Brent declined $2.32 or 3.7 percent to settle at $59.97 a barrel on London's Intercontinental Exchange.

Indian rupee ended marginally higher against dollar on Wednesday, owing to dollar sale by exporters and banks. Traders took a note of report that the Economic Advisory Council to the PM refuted the claims of former CEA Arvind Subramanian regarding overestimation of GDP numbers and said it will come out with a point-by-point rebuttal in due course. Moreover, dollar losing sheen against some other currencies overseas too supported the rupee. However, gains were limited as investors preferred to remain on sidelines ahead of key economic data -- April IIP and May CPI, to be announced after the market hours. On the global front, dollar edged lower for a second consecutive day on Wednesday on growing expectations of a US rate cut next week while high-yielding currencies suffered due to ongoing trade tensions. Finally, the rupee ended at 69.34, 9 paise stronger from its previous close of 69.44 on Tuesday.

The FIIs as per Wednesday's data were net buyers in equity and debt segments both. In equity segment, the gross buying was of Rs 4419.44 crore against gross selling of Rs 4117.72 crore, while in the debt segment, the gross purchase was of Rs 1154.74 crore with gross sales of Rs 722.97 crore. Besides, in the hybrid segment, the gross buying was of Rs 4.19 crore against gross selling of Rs 2.22 crore.

The US markets ended in red on Wednesday amid lingering trade tensions and questions over the direction of Federal Reserve policy. Asian markets are trading mostly lower on Thursday, weighted down by concerns of a flattening global growth. Indian markets snapped three-day winning streak and settled in red territory on Wednesday dragged by losses in banking and auto stocks amid US-China trade tensions. Today, the start is likely to be cautious amid mixed macro-economic data coupled with weakness in global markets. As per the government data, retail inflation spiked to a seven-month high of 3.05 percent in May, though remaining within RBI's comfort level, as kitchen items like vegetables, meat and fish turned dearer. On the other hand, India's industrial output grew to a six-month high of 3.4 percent in April mainly on account of improvement in mining and power generation. There will be some cautiousness with a private report that deal making through the private equity/venture capital routes saw a sharp 54 percent dip in May at a low $2.8 billion due to fewer large deals. The dip comes amid data release of sagging GDP growth fuelled largely by a fall in consumption which has been the one of the favourite for investors as well. However, some support may come later in the day with a UN report showing that Foreign Direct Investment (FDI) to India grew by 6 per cent to $42 billion in 2018, with strong inflows in the manufacturing, communication and financial services sectors, and cross-border merger and acquisition activities. Meanwhile, the Cabinet approved introduction of the Special Economic Zones (Amendment) Bill, 2019 in the ensuing session of Parliament. The bill will replace Special Economic Zones (Amendment) Ordinance, 2019, which was promulgated in March. The ordinance had paved the way for trusts to set up units in special economic zones (SEZs). There will be some buzz in the telecom stocks with report that the Telecom regulator TRAI extended the timeline for implementation of revised Mobile Number Portability (MNP) norms, by more than three months to September 30, providing relief to operators. There will be some reaction in sugar stocks with a private report indicating that sugar output in India may drop to a three-year low next season from a record as dry weather shrivels cane plants in some major growing areas of the country.

Support and Resistance: NSE (Nifty) and BSE (Sensex)

Nifty Top volumes

• Yes Bank has reduced its stake in Fortis Healthcare by around 2 per cent by selling over 1.51 crore shares of the company in various tranches.  
• ITC is looking at managed hotel properties outside the country, as part of its asset-right strategy for this vertical. 
• NTPC has received approval from board for investment in 100 MW Ramagundam Floating Solar PV Project, Phase-I. 
• Tata Motors Group's global wholesales in May 2019, including Jaguar Land Rover, were at 82,374 nos., lower by 23%, over May 2018.