Markets may open in green; eye on RBI policy

Indian equities ended lower on Monday as investors maintained a cautious approach ahead of Reserve Bank of India’s (RBI) monetary policy review, due on Tuesday. The Nifty closed tad above 8200, down 19.75 points or 0.2% at 8201.05 and the Sensex slipped 65.58 points or 0.2% at 26777.45. Global investors also remained worried about the outcome of the impending US Federal Reserve meet scheduled on June 13, and are also focused on the June 23 referendum in Briton whether to leave the European Union or not.

U.S. stocks advanced Monday, after Federal Reserve chair Janet Yellen painted a relatively upbeat view of the U.S. economy despite the weak May jobs report on Friday. The S&P 500 index advanced 10.28 points, or 0.5%, to 2,109.41. The Dow Jones Industrial Average rose 113.27 points, or 0.6%, to close at 17,920.33. Meanwhile, the Nasdaq Composite Index climbed 26.20 points, or 0.5%, to finish at 4,968.71.

European stocks closed marginally higher on Monday following a cautious lead from Asia. The Stoxx Europe 600 rose 0.3% to end at 342.41. The U.K.’s FTSE 100 finished 1% higher at 6,273.40. Germany’s DAX 30 closed up 0.2% at 10,121.08; and France’s CAC 40 edged up by less than 0.1% to 4,423.38.

Asian markets opened in the mix on Tuesday after comments by Federal Reserve Chair Janet Yellen quelled speculation on U.S. interest rates, whether they will be raised in July. Japan's Nikkei 225 index advanced 0.36% owing to a slightly weaker yen. In Australia, the S&P/ASX 200 Index climbed 0.46%, while the New Zealand’s S&P/NZX 50 Index traded flat. The Kospi Index was up 0.94% as trade resumed after the market was closed for Memorial Day on Monday. Chinese markets traded lower, with the Shanghai composite down by 0.15%

On the domestic front, A SGX Nifty 50 index future for June series is trading up by 39.5 points at 8,274. Indian markets are likely to open in green, however all eyes will be on RBI's policy meeting on Tuesday.