Stock Market Today:
The market is expected to open in the green as trends in SGX Nifty indicate a gap-up opening for the broader index in India with a gain of 121 points.
The BSE Sensex rallied 632 points to 54,885, while the Nifty50 climbed 182 points to 16,353 and formed a bullish candle which resembles Hanging Man kind of pattern on the daily charts.
As per the pivot charts, the key support level for the Nifty is placed at 16,259, followed by 16,166. If the index moves up, the key resistance levels to watch out for are 16,408 and 16,464.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:
Wall Street closed sharply higher on Friday as signs of peaking inflation and consumer resilience sent investors into the long holiday weekend with growing optimism that the Federal Reserve will be able to tighten the monetary policy without tipping the economy into recession. All three major US indices brought a decisive end to their longest weekly losing streaks in decades.
The Dow Jones Industrial Average rose 575.77 points, or 1.76 percent, to 33,212.96, the S&P 500 gained 100.4 points, or 2.47 percent, to 4,158.24 and the Nasdaq Composite added 390.48 points, or 3.33 percent, to 12,131.13.
Asian stocks followed Wall Street higher on Monday, while the dollar was pinned near five-week lows as investors wagered on an eventual slowdown in the US monetary tightening, albeit after sharp hikes in June and July.
MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.3 percent to a three-week high. Japan’s Nikkei climbed 1.3 percent and South Korea rose 0.9 percent.
Trends in the SGX Nifty indicate a gap-up opening for the broader index in India with a gain of 121 points. The Nifty futures were trading around 16,458 levels on the Singaporean exchange.
Oil climbs to $120 ahead of EU meeting on Russia sanctions
Oil prices rose to two-month highs on Monday as traders waited to see if the European Union would reach an agreement on banning Russian oil ahead of a meeting on a sixth package of sanctions against Moscow for its invasion of Ukraine.
Brent crude futures gained 46 cents, or 0.4 percent, to $119.89 a barrel at 0111 GMT, while US West Texas Intermediate (WTI) crude futures jumped 60 cents, or 0.5 percent, to $115.67 a barrel, extending solid gains from last week.
US economy kicks off second quarter on strong note; rise in inflation slowing
US consumer spending rose more than expected in April as households boosted purchases of goods and services, and the increase in inflation slowed, which could underpin economic growth in the second quarter amid rising fears of a recession.
Consumer spending, which accounts for more than two-thirds of US economic activity, increased 0.9 percent last month. Data for March was revised higher to show outlays racing 1.4 percent instead of 1.1 percent as previously reported. The strength in spending is despite consumer sentiment being at its lowest level since 2011.
Sebi tweaks SOP in case of defaults by trading, clearing members
Capital markets regulator Sebi on Friday tweaked the standard operating procedure specifying steps to be taken by stock exchanges, clearing corporations and depositories for dealing with possible defaults by trading or clearing members.
The measures are aimed at protecting the interest of non-defaulting clients of trading members (TMs) or clearing members (CMs) in the likely event of default. The regulator, in consultation with the Market Infrastructure Institutions, has decided to modify the framework in order to provide equitable distribution of funds amongst investors, according to a circular.
India Q1 GDP growth likely to have slowed for the third quarter in a row – Reuters poll
India’s economic recovery from the COVID-19 pandemic likely stumbled again in the first quarter of this year primarily due to Omicron-related restrictions and higher inflation, a Reuters poll showed.
Growth in Asia’s third-largest economy was pencilled in at 4 percent for the January-March quarter from the same period a year ago in a May 23-26 Reuters poll of 46 economists, down from 5.4 percent in Q4 2021. If realised, that would be the slowest in a year, and a third consecutive quarter of weaker growth.
Results on May 30
Life Insurance Corporation of India, Jubilant Foodworks, Sun Pharma, Aurobindo Pharma, Campus Activewear, IRCTC, Coffe Day Enterprises, LT Foods (Daawat), Dilip Buildcon, DCM Shriram Industries, Delhivery, Dhampur Sugar, Dhani Services, Dish TV, Dixon Technologies, Dredging Corporation of India, Eureka Forbes, Jindal Steel & Power, Lux Industries, Mazagon Dock Shipbuilders, Mawana Sugar, Mcleod Russel, Medplus Health, Natco Pharma, Prudent Corporate Advisory Services, Radico Khaitan, SpiceJet, Stove Kraft, and Wockhardt will be in focus ahead of March quarter earnings.
FII and DII data
Foreign institutional investors (FIIs) have net sold shares worth Rs 1,943.10 crore, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 2,727.47 crore worth of shares on May 27, as per provisional data available on the NSE.
Dollar drifts toward monthly loss as Fed bets ease
The dollar nursed last week’s losses on Monday and was headed for its first monthly drop in five months as investors have scaled back bets that rising US rates will spur further gains and as fears of a global recession have receded a little.
Early in the Asia session the dollar was a fraction weaker on the euro at $1.0728, just above a five-week low, having dropped about 1.5 percent on the common currency last week. The risk-sensitive Australian and New Zealand dollars were firm after a Friday rally, while the yen was a fraction weaker at 127.28 per dollar.
With inputs from Reuters and other agencies
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