Pre Market - Snapshot - 03/06/2021


 US markets closed marginally higher as economic crosscurrents continued to dominate the minds of participants. The Fed's beige book report also indicated that despite rising prices and difficulty in hiring, the economy continues to recover.


All the four US indices (Dow, S&P, Nasdaq, Russell 2000) gained anywhere between 0.7% to 0.14%. 


US dollar index continued to trade below 90 at 89.90, 10 years retraced back below 1.6% to trade near 1.59%, Cboe Vix also declined close to 17. 


Crude futures traded higher, Brent above 71, WTI nearing 69.


Indian stocks ended mixed as gains in banking stocks, and market heavyweight RIL was offset by weakness in Technology and FMCG names. Metal stocks saw some uptick in recovery in the commodity prices. As large caps consolidated, money started to move into mid/small-cap names that are having party time since the beginning of May (we have been indicating since the end of April that indices may proceed with a slower pace, but mid and small caps will start to catch up). 


For the day focus on weekly options expiry-related trade. Also market may watch RBI policy slated for tomorrow. For the medium-term wait for consolidation in large-cap names and action in mid and small names to continue.

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