The Indian markets consolidated in last session, though some late hour selling dragged the markets into red but the trade throughout the day remained mostly range bound. Today, the start is likely to be cautious and traders will be eyeing global developments for any cue. Meanwhile, on domestic front Prime Minister, Narendra Modi met the Secretaries of all government departments to outline his agenda of governance and in a positive step he said that the Government’s priority is to revamp the economy and asked the officials to prepare presentations on the contributions their Ministries can make to the revival. In a separate development, industry body Confederation of Indian Industry (CII) has called for a comprehensive review of the new Companies Act 2013 and the rules issued there under. There will be some buzz in the retail space on reports that India could allow global online retailers to sell their own products as early as next month. The move could allow the government to circumvent political opposition to opening up retail sector for the global players.

The US markets made a modest recovery and S&P 500 managed to reach a new record closing high. Though, the buying interest was somewhat subdued after ADP report showed that the pace of private sector job growth slowed more than expected, but traders got some support with Institute for Supply Management report showing rise in index of activity in the service sector in the month of May. The Asian markets have made a mixed start, though some of the indices are still trading near a seven-month high awaiting a European Central Bank policy decision.

Back home, after scaling fresh closing high levels in the previous session, Indian equity markets re-entered the consolidation mode as benchmarks gyrating in a thin band for the entire trading session, settled flat, albeit with a minor losses amid weak global cues. The key gauges displayed listless performance through the day as the aimless benchmarks appeared exhausted, lacking any significant upside triggers. Though, the psychological 7,400 (Nifty) and 24,800 (Sensex) levels proved as strong supports as the key gauges managed to settle above those levels by the end. Sentiments remained down-beat on report which showed that India has slipped to its lowest position in over a decade in the foreign direct investment confidence index. Traders also remained on sidelines ahead of Finance Minister’s pre-Budget talks with apex industry chambers and trade sector representatives on Friday. However, losses remained capped on report that foreign institutional investors (FIIs) bought shares worth a net Rs 575.09 crore on June 3, 2014, as per provisional data from the stock exchanges. On macro-economic front, showing some signs of recovery and stabilization, the activity in Indian services sector, which represent around 60% of Indian GDP, increased in the month of May on the back of rise in new orders. The HSBC services Purchasing Managers’ Index (PMI), based on the survey of around 350 private service sector companies rose to 50.2 in May from 48.5 in the previous month, above 50 mark that separates growth from contraction. Global cues remained somber with Asian markets ending mostly in the red after two days of healthy gains, while European counterparts made sluggish start. Back home, selling in software and technology counters too dampened the sentiments. Stocks like TCS, Wipro, Infosys, HCL Technologies, Tech Mahindra etc. edged lower after rupee rebounded from its early lows. Additionally, stocks related to tyre industry viz. Ceat India, Dunlop India, JK Tyre and Industries edged higher after the key Tokyo Commodity Exchange rubber contract touched a five-week low, weighed down partly by weak Chinese service sector data. The rubber prices fell approximately 30% in 2014 and hit five-year lows. Finally, the BSE Sensex declined by 52.76 points or 0.21%, to 24805.83, while the CNX Nifty was down by 13.60 points or 0.18%, to 7,402.25.