In a volatile session, Indian equity benchmarks traded in green throughout the day and ended on higher note on Friday, following positive global shares along with optimism over the easing of lockdown measures offset fears over rising cases of the coronavirus in the country. The markets had opened in the green, but soon pared most gains, as the surveys released by the Reserve Bank showing that consumer confidence has collapsed amid the coronavirus pandemic and it may result in contraction of the economy by 1.5 per cent during 2020-21. However, key gauges once again started upwards trend in late morning session, as traders took encouragement with the government data showing that the country's job situation registered an improvement during 2018-19 with unemployment rate declining to 5.8 per cent, down from 6.1 per cent in the previous financial year. Buying got intensified in the final hour of session, taking support from Crisil Research report that even as coronavirus pandemic has impacted many sectors, the agriculture could be the only bright spot as real agriculture is likely to witness a 2.5 percent growth in 2020-21. Sentiments remained positive as Union Minister for MSME and Road Transport and Highways Nitin Gadkari has said that foreign direct investment (FDI) can be explored in non-banking financial companies (NBFCs), in order to strengthen NBFCs for extending support to MSMEs. He said strengthening of NBFCs, state cooperative banks, district cooperative banks, credit societies etc is required to extend support to MSMEs during this challenging time. Finally, the BSE Sensex gained 306.54 points or 0.90% to 34,287.24, while the CNX Nifty was up by 113.05 points or 1.13% to 10,142.15.

The US markets ended higher on Friday as the Labor Department's closely watched monthly jobs report seemed to prove traders were right to be optimistic about a quick economic recovery. The Labor Department said non-farm payroll employment jumped by 2.51 million jobs in May after plummeting by a revised 20.69 million jobs in April. The record spike in employment came as a shock to participants, who had expected the loss of another 8.0 million jobs following the nosedive of 20.5 million jobs originally reported for the previous month. Employment rose sharply in leisure and hospitality, construction, education and health services, and retail trade, according to the Labor Department. The Labor Department claimed the improvements in the labor market reflected a limited resumption of economic activity that had been curtailed in March and April due to the coronavirus pandemic and efforts to contain the spread of the disease. Besides, Energy stocks led the broad based rally, benefiting from a sharp increase by the price of crude oil. Reflecting the strength in the energy sector, Philadelphia Oil Service Index skyrocketed by 12.9 percent, the NYSE Arca Natural Gas Index soared by 8 percent and the NYSE Arca Oil Index surged up by 7.6 percent. Banking stocks also moved substantially higher, driving the KBW Bank Index up by 4.6 percent. With the gain, the index reached a three-month closing high.

Crude oil futures ended higher on Friday, supported by report that major oil producers will convene to discuss plans for extended productions cuts. The Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, said they would hold meetings via videoconference on Saturday. Further, oil prices also rose amid optimism about increased energy demand after data from US Labor Department showed unexpected job growth in the month of May. Also, with several businesses across the global reopening after several weeks of lockdown and the European Central Bank deciding to substantially expand its bond-buying program to support the economy, it is expected that energy demand will see a notable surge over the coming months. Crude oil futures for July surged $2.14 or 5.7 percent to settle at $39.55 a barrel on the New York Mercantile Exchange. August Brent crude rose $2.31 or 5.8 percent to settle at $42.30 a barrel on London's Intercontinental Exchange.

Indian rupee pared all of its early gains and ended almost flat against dollar on Friday, as rising coronavirus cases in the country weighed on investors sentiment. Traders remained cautious with surveys released by the Reserve Bank showing that consumer confidence has collapsed amid the coronavirus pandemic and it may result in contraction of the economy by 1.5 per cent during 2020-21. Some concern also came as the Confederation of Indian Industry (CII) in its agenda document 2020-21 has sounded a note of caution saying that the government should guard against increasing fiscal deficit that may prompt rating downgrade resulting in other consequences for the economy. However, positive domestic stock market supported the rupee to some extent. On the global front, pound rose to a new three-month high against the dollar on Friday due to the Bank of England playing down the prospect of negative rates soon, and dollar weakness. Finally, the rupee ended at 75.58, 1 paise weaker from its previous close of 75.57 on Thursday.

The FIIs as per Friday's data were net buyers in equity segment, while they were net sellers in debt segment. In equity segment, the gross buying was of Rs 8380.57 crore against gross selling of Rs 5756.38 crore, while in the debt segment, the gross purchase was of Rs 655.64 crore with gross sales of Rs 1308.82 crore. Besides, in the hybrid segment, the gross buying was of Rs 13.20 crore against gross selling of Rs 1.26 crore.

The US markets ended higher on Friday following the release of a Labor Department report showing an unexpected jump in employment in the month of May. Asian markets are trading in green on Monday after US jobs data released Friday had an unexpected jump, spurring hopes of an economic recovery from the coronavirus pandemic. Indian markets ended higher with notable gains on Friday, in line with key Asian equities, amid heavy buying in metal, media and banking scrips. Today, the markets are likely to make optimistic start of new week following firm global cues. Besides, the reopening of hotels, restaurants, malls, and places of worship from June 08 after 75 days of lockdown may also aid sentiment. Some support will come with report that foreign portfolio investors have pumped in a massive Rs 18,589 crore into the Indian markets the first week of June as sentiment improved amid graded lifting of lockdown curbs. Also, the Reserve Bank of India (RBI) said the country's foreign exchange reserves surged $3.43 billion to a fresh all-time high of $493.48 billion for the week ended May 29 on a handsome accretion of the core currency assets. Besides, the government of India has effectively suspended fresh bankruptcy proceedings against persons impacted because of COVID-19 for at least six months, up to a maximum of one year. Though, the continuous rise in the Covid-19 cases may dampen the sentiment in the markets. India has registered over 10,500 new coronavirus cases in a single day, taking its spot as the 5th worst-hit nation across the global. Traders may be concerned with the Income Tax Department's statement that the actual gross direct tax collection during 2019-20 fiscal dipped by 4.92% to Rs 12.33 trillion on account on reduction in corporate tax rate, increased standard deduction and personal I-T exemption limit. Meanwhile, traders will be looking ahead to the GST Council meeting which is scheduled on June 12 and likely to discuss the impact of the COVID-19 pandemic on tax revenues. There will be some buzz in the banking stocks with the RBI's data showing that bank credit and deposits grew 6.25% and 10.64% YoY to Rs 102.23 lakh crore and Rs 138.30 lakh crore, respectively, in the fortnight ended May 22. Power stocks will be in focus with CRISIL Ratings' report that power distribution utilities' debt will hit an all-time high of Rs 4.5 lakh crore by the end of the ongoing financial year. There will be some reaction in coal stocks with a private report that the country's coal import dropped by 20 percent to 18.93 million tonnes (MT) in May.

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

Nifty Top volumes

• HCL Technologies has expanded strategic partnership with Google Cloud to bring HCL's software offerings, starting with HCL Commerce, to Google Cloud. 
• L&T's construction arm -- L&T construction has bagged an order for its Heavy Civil Infrastructure Business from I&CAD, Government of Telangana. 
• Maruti Suzuki India has commissioned of a 5 MW carport style photovoltaic solar power plant in Gurugram. 
• M&M has received approval from Loans & Investment Committee to raise Rs 500 crore through Rated, Listed, Unsecured, Redeemable NCDs on Private Placement basis.