Indian equity benchmarks surrendered most of the day's gains but managed to end marginally in green on Monday, following positive cues from Asian peers. Trading for the day began on a higher note, as investors cheered the government's move to open places of worship, malls and restaurants. Traders took encouragement 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 sentiments 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. Some support also came as the government has modified public procurement norms to give maximum preference to companies whose goods and services have 50 per cent or more local content, a move aimed at promoting 'Make in India' and making the country self-reliant. The revised Public Procurement (Preference to Make in India), Order 2017, has introduced a concept of Class-I, II and non-local suppliers, based on which they will get preference in government purchases of goods and services. However, in late afternoon session, key indices gave up most of their gains to come off their intraday high points, as market-men got anxious with 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. Some pessimism also came with the private report that the prolonged period of growth slowdown is likely to adversely impact India's external sector which currently is comfortably placed on account of subdued prices of crude oil in the international market. Finally, the BSE Sensex gained 83.34 points or 0.24% to 34,370.58, while the CNX Nifty was up by 25.30 points or 0.25% to 10,167.45.

The US markets ended higher on Monday, with Nasdaq closing at all-time high, as traders remained optimistic about a quick economic recovery as businesses begin to reopen following the coronavirus lockdown. The Dow on Monday finished 6.7% off its closing high in mid-February, while the S&P 500 ended only 4.5% shy of its highest close. The Federal Reserve has been wildly successful in terms of keeping credit flowing during the pandemic, with major US equity and debt benchmarks already recouping significant lost ground since the COVID-19 pandemic forced the nation into lockdown. The stock rally included not only high-flying technology companies that provided sought-after services during recent shutdowns, but also companies battered by low oil prices and the near halt in travel. Recent economic data has added to investor optimism even as economists warn that the recovery will be more gradual than many expect. Besides, Energy stocks helped to lead the way higher once again even though the price of crude pulled back sharply following recent strength. The Philadelphia Oil Service Index skyrocketed by 12.1 percent, the NYSE Arca Natural Gas Index spiked by 8.1 percent and the NYSE Arca Oil Index surged up by 4.1 percent. Substantial strength was also visible among steel stocks, as reflected by the 3.5 percent jump by the NYSE Arca Steel Index. Banking, commercial real estate and computer hardware stocks also saw considerable strength, moving higher along with most of the other major sectors.

Crude oil futures ended lower on Monday as investors focused on the prospect of increased output from some countries, even after OPEC and allied nations agreed to extend a production cut of nearly 10 million barrels of oil a day through the end of July. Following the group's decision to not extend cuts beyond July, Saudi Arabia sharply raised its monthly crude prices for July and said there will not be additional voluntary reductions. Saudi Energy Minister Prince Abdulaziz bin Salman said that the kingdom and Gulf allies Kuwait and the United Arab Emirates would not cut output by an extra 1.18 million bpd in July as they are doing in the current month. The voluntary cuts by these countries were in addition to the agreed reduction of 9.7 million barrels a day, according to OPEC+'s plan. Crude oil futures for July dropped $1.36 or 3.4 percent to settle at $38.19 a barrel on the New York Mercantile Exchange. August Brent crude declined $1.50 or 3.6 percent to settle at $40.80 a barrel on London's Intercontinental Exchange.

Indian rupee gave away all of its losses and strengthened a bit against dollar on Monday, driven by weakening of the greenback in overseas markets. Traders took some support with the Reserve Bank of India (RBI) stating that 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. However, gains remain capped as anxiety remained among traders with the private report that the prolonged period of growth slowdown is likely to adversely impact India's external sector which currently is comfortably placed on account of subdued prices of crude oil in the international market. On the global front, US dollar fell against the antipodean currencies and the British pound after a surprising improvement in US labor market data bolstered expectations for economic recovery, which reduced safe-harbor demand for the greenback. Finally, the rupee ended at 75.55, 3 paise stronger from its previous close of 75.58 on Friday.

The FIIs as per Monday'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 4611.32 crore against gross selling of Rs 4601.82 crore, while in the debt segment, the gross purchase was of Rs 239.17 crore with gross sales of Rs 606.64 crore. Besides, in the hybrid segment, the gross buying was of Rs 4.72 crore against gross selling of Rs 1.51 crore.

The US markets ended sharply higher on Monday as traders remain optimistic about a quick economic recovery as businesses begin to reopen following the coronavirus lockdown. Asian markets are trading mostly in green on Tuesday following overnight rally on Wall Street. Indian markets ended higher on Monday, with gains in rupee on the back of sustained foreign fund flows and hopes for a revival of economic activity helping underpin investors' sentiment. Today, the markets are likely to make positive start tracking global markets. Some support will come as the Reserve Bank of India proposed a comprehensive framework for sale of loan exposures, which could be standard, sub-standard or non-performing assets (NPAs), as part of the overall exercise to deepen the market for lending. Traders may take note that Finance Minister Nirmala Sitharaman said the government will consider an extension in the deadline for availing the lower 15 percent corporate tax rate on new investments, due to the COVID-19 pandemic. Though, there may be some cautiousness with rising corona virus cases in India. The total number of coronavirus cases in the country has jumped to 265,928, while 7,473 people have died from the disease so far. Traders may be concerned with the World Bank's statement that India's economy will shrink by 3.2 percent in the current fiscal, as it joined a chorus of international agencies that are forecasting a contraction in growth rate due to the coronavirus lockdown halting economic activity. It said that the COVID-19 pandemic and the multi-phased lockdown imposed to curb its spread has resulted in a devastating blow to the Indian economy. Also, there may be some anxiety as S&P Global Ratings said Indian economy will shrink 5 per cent in the current fiscal, saying the fiscal stimulus worth 1.2 per cent of GDP will not be enough to provide significant growth support. Meanwhile, Markets regulator Sebi has eased the compliance norms for companies seeking to list their debt securities such as non-convertible debentures (NCDs) and commercial papers. Public sector banks will be in focus as FM Nirmala Sitharaman will meet the chiefs of all state-owned banks and the chairman of SIDBI on June 09 to review the flow of credit after the opening up of the economy. She will take stock of the Emergency Credit Line Guarantee Scheme announced recently. There will be some reaction in sugar stocks with Food Minister Ram Vilas Paswan's statement that cane arrears to farmers have reached around Rs 22,000 crore for the current season, and asked mills to clear it soon to improve farmers' cash flow situation amid the coronavirus pandemic.

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

Nifty Top volumes

• Hindustan Unilever is focusing on e-commerce and modern trade channels, which it considers as channels of the future. 
• Wipro has entered into a collaboration with IBM to assist Wipro customers embark on a seamless and secure hybrid cloud journey. 
• Abu Dhabi Investment Authority is planning to invest Rs 5,683.50 crore in Reliance Industries' wholly owned subsidiary -- Jio Platforms. 
• Infosys has partnered with Celonis to transform ERP modernization and business process optimization.