Indian market is expected to open gap up following its global peers after Optimism around resumption of economic activity. Trends on SGX Nifty indicate a gap up opening for the index in India with a 97 points gain.
Equity market benchmarks Sensex and Nifty ended in the green for the fifth consecutive session on June 2, tracking positive Asian peers. Optimism around resumption of economic activity and government's commitment to the reform process underpinned market sentiment.
The Sensex closed with a gain of 522 points, or 1.57 percent, at 33,825.53 and the Nifty ended 153 points, or 1.56 percent, higher at 9,979.10.
According to pivot charts, the key support level for Nifty is placed at 9,870.23, followed by 9,761.37. If the index moves up, key resistance levels to watch out for are 10,041.78 and 10,104.47.
Stay tuned to Moneycontrol to find out what happens in 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:
A late-session rally pushed Wall Street to solid gains on Tuesday as market participants looked past widespread social unrest and pandemic worries to focus instead on easing lockdown restrictions and signs of economic recovery.
The Dow Jones Industrial Average rose 267.63 points, or 1.05%, to 25,742.65, the S&P 500 gained 25.09 points, or 0.82%, to 3,080.82 and the Nasdaq Composite added 56.33 points, or 0.59%, to 9,608.38.
Asian stocks were poised to follow the global rally on Wednesday as hopes of more government stimulus bolstered riskier assets and overshadowed a host of other worries from the coronavirus to Hong Kong and growing U.S. civil unrest.
Japan's Nikkei 225 futures were 1.6% higher in Asia on Wednesday morning, while Australian S&P/ASX 200 futures rose 0.58% in early trading.
Trends on SGX Nifty indicate a gap up opening for the index in India with a 97 points gain. The Nifty futures were trading at 10,076 on the Singaporean Exchange around 07:30 hours IST.
Oil hits three-month high over hopes for output cuts
Oil rose on Wednesday to a near three-month high amid optimism that major producers will extend production cuts as the world recovers from the coronavirus pandemic.
Brent crude was up 22 cents, or 0.6%, at $39.79, by 0003 GMT, the highest since March 6, having gained 3.3% on Tuesday. U.S. West Texas Intermediate crude (WTI) gained 33 cents, or 0.9%, at $37.14, also the highest since March 6. The contract ended the previous session up 3.9%.
Japan's service sector activity shrinks for fourth month in May: PMI
Japan’s services sector activity stayed deep in contraction in May, although the pace of decline moderated from the previous month, as restraining measures put in place over the coronavirus outbreak hurt business activity and the jobs market.
The final seasonally adjusted au Jibun Bank Japan Services Purchasing Managers’ Index (PMI) rose to a seasonally adjusted 26.5 in May from a record low 21.5 in the previous month.
Extension of moratorium on loan repayment to affect liquidity conditions of NBFCs: ICRA
The extension of moratorium on loan repayments till August by the Reserve Bank of India will impact non-banking financial companies' (NBFCs) collections and affect their liquidity conditions, says a report. In March, RBI had announced a three-month moratorium on loan repayments due between March 2020 and May 2020. Last month, the central bank further extended the moratorium by three months.
Most NBFCs carried adequate on-balance sheet liquidity as of March 2020, which, along with access to funding lines, would be sufficient to meet their three-month requirements, according to the report by rating agency ICRA.
Coronavirus impact | Over one-third MSMEs to shut up shop: Report
Around one-third of micro-small and medium enterprises (MSMEs) have begun closing their operations as recovery from the COVID-19 outbreak seems difficult. The All India Manufacturers' Organisation (AIMO) said the government's financial package for MSMEs was insufficient, The Economic Times reported.
As per an AIMO survey, around 35 percent of MSMEs and 37 percent of self-employed individuals have begun closing their businesses, the report said.
Coronavirus to leave 'lasting scars" on developing world: World Bank
The World Bank said on Tuesday that it expects the coronavirus and resulting recessions to leave "lasting scars" on developing and emerging market countries, with the worst damage on oil exporters and those suffering financial crises.
In analytical chapters of its new Global Economic Prospects report, the bank said that the average emerging market country suffering a financial crisis could see potential output fall by 8 percent over a five year period, with lost output for developing oil exporters falling 11 percent.
Uday Kotak sells Rs 6,944 crore worth shares of Kotak Mahindra Bank
Promoter and Managing Director Uday Suresh Kotak has sold Rs 6,944 crore worth of shares of Kotak Mahindra Bank, the country's fourth largest private sector lender, on June 2. Kotak sold 5.6 crore equity shares (representing 2.92 percent of total paid-up equity) at Rs 1,240 per share, as per the bulk deals data available on the BSE on June 2.
The stake sale was to comply with a settlement agreement struck with the Reserve Bank of India (RBI) in January on promoter stake dilution, which brought the curtains down on an extended standoff between the regulator and the bank over reduction in promoter shareholding.
FII and DII data
Foreign institutional investors (FIIs) domestic institutional investors (DIIs) bought shares worth Rs 7,498.29 crore and Rs 441.05 crore in the Indian equity market on June 2, provisional data available on the NSE showed.
Stock under F&O ban on NSE
Vodafone Idea is under the F&O ban for June 3. 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