Indian Rupee hits a fresh low against the USD
The Indian Rupees hits a fresh low against the USD in the early morning trade today. Experts had expected the Indian currency to open near a record low of 77.80 and expected it to trade in a range of 77.60 to 78.00 with a weakening bias. The Rupee was currently trading at 77.81. Experts suggest that higher than expected US inflation could again send US yields higher, equities lower and the US dollar higher against the DM and EM currencies. Against this backdrop, RBI’s approach could suppress the aggressive volatility and rates. Overall, they expect the pair to face resistance near 77.80-77.85 levels. If it convincingly trades above this level then further move towards 78-78.10 can be expected. On flipside, 77.40-50 zone will act as a crucial short-term support.
Mohit Nigam, Head – PMS, Hem Securities
Benchmark Indices are expected to open on negative note as suggested by trends on SGX Nifty. US stock markets ended lower on Wednesday as investor anxiety heightened ahead of data on Friday that is expected to show consumer prices remained elevated in May. Selling picked up toward the end of the session. Mega-cap growth stocks led the drop, with Apple Inc and Amazon Inc falling 3.6% and 4.2%, respectively. Dow Jones was down by 638 points, whereas NASDAQ was down by 2.74% to 12269.0 levels.
Asian markets are trading on a negative note as Chinese inflation data for May came in largely in line with expectations. Investors also looked ahead to US CPI data which is going to be released today. Nikkei is trading 1.27% lower whereas Kospi is down by 1.34%. The European Central Bank raised its inflation projections once again on Thursday but cut its growth outlook as the conflict in Ukraine continues to weigh on confidence, consumption and investment.
On the technical front 16,100 and 16500 are immediate support and resistance in Nifty 50. For Bank Nifty 34400 and 35200 are immediate support and resistance respectively.
Citibank recommends a ‘buy’ for Adani Ports
The global investment bank Citibank recommends a ‘buy’ for Adani Ports stock, with a target price of Rs 981 a share after the company reiterated FY23 volume guidance of 350-360 million tons & it was observed that the underlying April/May volumes are inline with guidance
The management of the company also emphasized on being net FCF +ve, maintaining comfortable leverage ratio & investment grade rating. The management also intends to have a 20-25% dividend payout ratio
Prashanth Tapse, Vice President (Research), Mehta Equities Ltd
Domestic equity markets may see a sharp fall in early Friday trades amid weakness across the global markets. Soaring inflation, recession fears, and the prospect of the Federal Reserve getting even more hawkish is making investors nervous worldwide. The negativity can also be attributed to yesterday’s weak session at European stock markets which closed sharply lower, with Germany’s DAX retreating 1.7% after the ECB set the path to start raising borrowing costs next month. ECB confirmed asset purchases will end from July 1st and a 25bps rate hike will follow in July as well. The U.S 10-year Treasury which has already doubled this year to roughly 3%, is expected to flirt with 4% by the end of 2022. Even if Nifty moves up, the overwhelming trend is down. Nifty’s immediate downside risk is seen at 16121 mark.
Escorts received all approvals to change its name to Escorts Kubota
Farm machinery and construction equipment maker Escorts said it has received requisite approvals for changing its name to Escorts Kubota Ltd.
The name change comes in the wake of Japan’s Kubota Corporation increasing its stake in Escorts to 44.8 per cent by subscribing to new equity shares and through an open offer to the public shareholders of Escorts. Kubota has also become a joint promoter of the company along with existing promoters, the Nanda family, whose shareholding in the company remains unchanged. Nikhil Nanda continues to be the Chairman and Managing Director (CMD) of the company.In December last year, shareholders of Escorts Ltd had approved preferential allotment of nearly 94 crore shares to Kubota, as part of a deal, allowing it to become a joint promoter in Escorts.
#StocksToWatch | Here’s the list of stocks that are in focus going into trade today pic.twitter.com/2YObtZTHaK
— CNBC-TV18 (@CNBCTV18Live) June 10, 2022
Oil falls on demand worries over Shanghai’s new partial lockdowns:
Oil prices fell on Friday but still hovered near three-month highs, with fears over new COVID-19 lockdown measures in Shanghai outweighing solid demand for fuels in the world’s top consumer United States. Brent crude futures for August was down $1.01, or 0.8%, at $122.06 a barrel as of 0141 GMT after a 0.4% decline the previous day. U.S. West Texas Intermediate crude for July fell 98 cents, or 0.8%, to $120.53 a barrel, having dropped 0.5% on Thursday.
Asian Markets Updates
FII and DII data: Foreign institutional investors (FIIs) have net sold Rs 1,512.64 crore worth of shares, whereas domestic institutional investors (DIIs) remained net buyers to the tune of Rs 1,624.90 crore on June 9, as per provisional data available on the NSE.
US weekly jobless claims near five-month high:
The number of Americans filing new claims for unemployment benefits increased to the highest level in nearly five months last week, but that likely does not mark a material shift in labour market conditions, which remain extremely tight. The report from the Labor Department on Thursday also showed unemployment rolls remained at a more than 52-year low at the end of May, underscoring the jobs market’s strength.
IMF expects further cut in global growth outlook:
The International Monetary Fund expects to further cut its forecast for global economic growth in 2022 next month, an IMF spokesperson said on Thursday, following moves by the World Bank and Organization for Economic Co-operation and Development (OECD) to cut their own forecasts this week.
That would mark the IMF’s third downgrade this year. In April, the IMF had already slashed its forecast for global economic growth by nearly a full percentage point to 3.6% in 2022 and 2023.
Most rated companies have buffers to withstand further 10-15% rupee depreciation: Moody’s
Moody’s Investors Service on Thursday said most rated companies in India have buffers to withstand a further 10-15 percent depreciation of the rupee. The rupee depreciated by 8 paise to close at 77.76 against the US dollar on Thursday, weighed down by elevated crude oil prices and persistent foreign capital outflows.
In a statement, Moody’s said the rupee has depreciated around 4.5 percent since the start of the year. Higher energy prices and interest rates in developed economies have led to capital outflows and rising commodity prices, pressuring the rupee.
