Markets may open flat ahead of RBI policy on Tuesday

Indian equities indices ended flat in a choppy session on Friday, but the market witnessed a second consecutive weekly gain as metal producers and automakers climbed amid optimism that the nation’s economic growth will accelerate. The second forecast of IMD assuring an above normal monsoon, kept buying interest alive. For the week, the BSE Sensex rose 189.43 points or 0.71% at 26,843, and the NSE Nifty moved up 64.15 points or 0.78% at 8220.80. The release of weak Service PMI data also ruled the stock-momentum on Friday as Nikkei Service Business Activity index fell from 53.7 in April to 51.0 in May, pointing slower expansion in business activity.

U.S. stocks closed slightly lower Friday, as investors reset their expectations for interest rates yet again after reports showed weakness in labour market. The U.S. economy created just 38,000 jobs last month, the weakest level of hiring in nearly six years. The S&P 500 index closed down 6.13 points or 0.3% at 2,099.13 to end the week virtually flat. The Dow Jones Industrial Average fell 31.5 points, or 0.2%, to end at 17,807.06 and posted a 0.4% weekly loss. The Nasdaq Composite Index declined 28.85 points, or 0.6%, to end at 4,942.52; but still finished the week higher, up 0.2%.

Europe closed in the red Friday, locking in a weekly loss, as a much weaker-than-anticipated U.S. jobs report stoked worries about global growth. The Stoxx Europe 600 fell 0.9% to 341.29 and for the week dropped 2.4%, breaking three consecutive weekly gains. Germany’s DAX 30 ended 1% lower at 10,103.26, and France’s CAC 40 dropped 1% to 4,421.78.

Asian markets opened in the mix on Monday as a disappointing May jobs report in the U.S. on Friday weakened the dollar and bolstered regional currencies, including the yen. Japan's Nikkei 225 index slumped 1.26% due to stronger yen. In Australia, the S&P/ASX 200 Index climbed 0.71%. Markets in both South Korea and New Zealand are closed for holidays Monday. The Shanghai Composite is hovering around the flat line.

On the domestic front, A SGX Nifty 50 index future for June series is trading flat at 8,237. Indian markets are likely to open flat ahead of RBI policy on Tuesday.