The Indian stock market is expected to open in the red as trends on SGX Nifty indicate a cautious opening for the index in India with a 24 points loss.
The BSE Sensex climbed 221.52 points to 52,773.05 on June 15 while the Nifty50 rose 57.40 points to 15,869.30 and formed Doji candle on the daily charts as closing was near opening levels.
According to pivot charts, the key support levels for the Nifty are placed at 15,840.53, followed by 15,811.87. If the index moves up, the key resistance levels to watch out for are 15,899.73 and 15,930.27.
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:
US Markets
Investors retrenched and avoided major risks across multiple markets on Tuesday as markets awaited fresh guidance from the U.S. Federal Reserve on Wednesday.
The Dow Jones Industrial Average fell 94.42 points, or 0.27%, the S&P 500 lost 8.56 points, or 0.20%, and the Nasdaq Composite dropped 101.29 points, or 0.71%.
Asian Markets
Asian markets struggled for direction in Wednesday morning trade as investors looked ahead to data releases in China as well as the U.S. Federal Reserve’s interest rate decision.
In Japan, the Nikkei 225 slipped 0.27% while the Topix index gained 0.17%.
SGX Nifty
Trends on SGX Nifty indicate a cautious opening for the index in India with a 24 points loss. The Nifty futures were trading at 15,830 on the Singaporean Exchange around 07:30 hours IST.
May exports up nearly 70% due to low-base effect
Owing to a severe low base effect, India’s merchandise trade shot up by a massive 69.7 percent in May. Exports had risen by 193.63 percent in April and 60 percent in March. Data released by the Commerce and Industry Ministry on 15 June showed outbound trade rose to $32.27 billion in May, from $19.05 billion in May, 2020. In May, 2020, exports had declined by 36.47 percent.
Retail inflation spike in May might cause RBI to revisit focus on growth risks: Oxford Economics
Retail inflation spike in May might cause the RBI to “revisit its focus on growth risks”, global forecasting firm Oxford Economics said on Tuesday adding that a rate hike is still unlikely this year.
It added that the underlying dynamics of the May inflation print augur caution and the recovery remains on uncertain ground and with fiscal support in retreat, the RBI will likely be hesitant to remove policy accommodation anytime soon.
“Consumer inflation spiked in May… This may cause the RBI to revisit its focus on growth risks. Still, we think a rate hike is unlikely this year,” Oxford Economics said.
Almost 85% decline in daily COVID-19 cases since highest reported peak on May 7: Govt
There has been an almost 85 percent decline in daily COVID-19 cases since the highest reported peak on May 7 and currently, there are 20 states and UTs where active cases are less than 5,000, the government said on Tuesday. “We have to learn more about it and track its progress,” it said.
It also said that a sharp decline of 78 percent has been noted since the highest reported weekly Covid case positivity rate of 21.4 percent, which was recorded between May 4 and 10 during the second wave.
Japan exports jump most in 41 years, machine orders rise
Japan’s exports rose at the fastest pace since 1980 in May and a key gauge of capital spending grew, helping the world’s third largest economy offset sluggish domestic demand as COVID-19 vaccinations boost business activity in key markets.
Ministry of Finance data on Wednesday showed exports grew 49.6% year-on-year in May, versus a 51.3% increase expected by economists in a Reuters poll, led by U.S.-bound car shipments.
Results on June 16
RITES, Asahi India Glass, CESC, Commercial Syn Bags, DIC India, Kakatiya Cement Sugar, Manaksia Steels, Nureca, Pritika Auto Industries, Somany Ceramics, and Welspun Enterprises.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 633.69 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 649.29 crore in the Indian equity market on June 15, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Six stocks – Adani Ports, Canara Bank, Escorts, NALCO, Punjab National Bank, and Sun TV Network – are under the F&O ban for June 16. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
With inputs from Reuters & other agencies
