Investor sentiment will also remain influenced by global developments, including reports of an initial US–Iran agreement aimed at extending a ceasefire and reopening the Strait of Hormuz, even as uncertainty persists over implementation and broader geopolitical stability in the region.
Markets will additionally watch the upcoming Federal Open Market Committee (FOMC) meeting on June 16–17, where new Federal Reserve Chair Kevin Warsh is expected to maintain a status quo on interest rates, with a strong labour market and inflation rising to a three-year high of 4.2% in May keeping expectations of a rate cut off the table.
US-Iran war: The United States and Iran reached an initial agreement Monday that would extend their shaky ceasefire and lead to the reopening of the Strait of Hormuz, but significant challenges remain to ending the war, including whether Israel will continue its offensive in Lebanon. Details of the deal were not immediately released, but it appeared that it would not be implemented until it is signed, which mediator Pakistan said would happen Friday in Geneva.
US Markets: Stocks advanced on Monday to start a holiday-shortened trading week after President Donald Trump announced an agreement had been reached to end the war between the US and Iran. The Dow Jones Industrial Average rose 516 points, or 1%, and hit a new all-time intraday high during the session. The S&P 500 climbed 1.5%, while the Nasdaq Composite gained 2.3%.
Weak Monsoon: Union Finance Minister Nirmala Sitharaman on Monday said India is preparing for a weaker-than-normal monsoon this year, though there is no immediate concern over food availability due to adequate buffer stocks. She added that the government has put safeguards in place to manage any possible supply-side disruptions arising from adverse weather conditions, stating, “Govt preparing for a not so good monsoon scenario, adequate buffer stocks maintained.”
HCLTech acquisition of Sarvam AI: In a first move of its kind, IT services company HCLTech Ltd is set to back India’s large language model (LLM) space, agreeing to acquire a 10.46% stake in Axonwise Private Ltd (Sarvam AI) for ₹1,427 (about $150 million) crore at a valuation of $1.5 billion. The investment will be made through the acquisition of 41,421 equity shares of Sarvam AI. The transaction is expected to be completed within two weeks of signing.
Federal Open Market Committee (FOMC) meeting: Kevin Warsh, the new Federal Reserve chair, will oversee his first policy meeting at the June 16–17 Federal Open Market Committee (FOMC) meeting, which is expected to keep interest rates unchanged, with a solid labour market and inflation rising to a three-year high of 4.2% in May, keeping expectations of a rate cut off the table.
(Edited by : Ajay Vaishnav)
