The market is likely to open marginally lower on June 15 as the SGX Nifty indicates a negative start for the broader index, with a loss of 11 points after opening the session at 18,777 points. SGX futures touched a high of 18,859 in early trade on June 15.
The benchmark indices continued their upward journey for the third consecutive session in the previous close. The BSE Sensex rose 85 points to 63,229, while the Nifty50 climbed 40 points to 18,756 and formed a Doji sort of candlestick pattern on the daily charts as the closing was near its opening levels.
According to the pivot point calculator, the Nifty may find support at 18,708, followed by 18,689 and 18,659. If the index advances, then 18,769 will be the key resistance, followed by 18,788 and 18,818.
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.
SGX Nifty
The SGX Nifty indicates a marginally lower start for the broader index with a loss of 11 points on Thursday. SGX futures stood at 18,823.
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US Markets
US stock futures were roughly flat after the Federal Reserve skipped a rate hike at its meeting that ended Wednesday, but signaled two more rate hikes may still be in store later this year. Dow Jones Industrial Average futures rose by 2 points, or 0.01 percent. S&P 500 and Nasdaq-100 futures climbed 0.07 percent and 0.11 percent, respectively.
Stocks gyrated on Wednesday as the Federal Reserve paused its rate-hiking campaign and signaled it was making progress on fighting inflation. But at the same time, the central bank indicated it would hike another two times later this year.
The S&P 500 eked out a narrow gain, rising 0.08 percent to close at 4,372.59. The Nasdaq Composite added 0.39 percent to close at 13,626.48, supported by gains in Nvidia and AMD. The Dow Jones Industrial Average dipped 0.68 percent, or 232.79 points, to finish the session at 33,979.33, dragged down by losses in UnitedHealth. During the session, both the S&P 500 and the Nasdaq touched their highest levels since April 2022.
European Markets
European markets closed higher on Wednesday as investors look ahead to a widely expected announcement of a pause in rate hikes from the Federal Reserve. The benchmark Stoxx 600 index provisionally ended 0.5 percent higher, with most sectors in positive territory.
Mining stocks climbed 2.5 percent to lead gains, while travel and leisure stocks dipped 1.1 percent. Figures on Wednesday showed the UK economy grew by 0.2 percent in April, in line with expectations, with growth driven by services.
Sterling gained 0.6 percent against the U.S. dollar and 0.5 percent against the euro. Meanwhile, the yield on 2-year UK government bonds dipped 3 basis points to 4.853 percent after shooting to its highest level since 2008 on Tuesday on the back of a strong jobs report showing record wage growth. FTSE closed 0.1 percent higher at 7602 points. DAX closed 0.49 percent higher at 16310 points.
Asian Markets
Asia-Pacific markets are set to rise after the US Federal Reserve held off on a rate hike while projecting that another two quarter percentage point moves are on the way before the end of the year. The latest decision left the Fed’s key borrowing rate in a target range of 5%-5.25%. The central bank forecast it will raise interest rates as high as 5.6 percent before 2023 is over.
In Asia, New Zealand fell into a technical recession after its first quarter gross domestic product fell 0.1 percent year on year, after reporting a revised 0.7 percent decline in the final quarter of 2022. In Japan, the Nikkei 225 inched up marginally, while the Topix fell 0.13 percent as the Bank of Japan kicks off its two-day monetary policy meeting.
South Korea’s Kospi opened 0.54 percent up, with the Kosdaq seeing a larger gain of 1.23 percent. China will release a slew of economic data, including industrial output, retail sales and house prices for May. Hong Kong’s Hang Seng index is set for a rebound after snapping a five-day winning streak, with futures at 19,692 compared to the HSI’s close of 19,408.42.
Fed keeps rates unchanged for first time in 15 months but signals 2 more potential hikes this year
The Federal Reserve kept its key interest rate unchanged Wednesday after having raised it 10 straight times to combat high inflation. But in a surprise move, the Fed signalled that it may raise rates twice more this year, beginning as soon as next month.
The Fed’s move to leave its benchmark rate at about 5.1 percent, its highest level in 16 years, suggests that it believes the much higher borrowing rates it’s engineered to have made some progress in taming inflation. But top Fed officials want to take time to more fully assess how their rate hikes have affected inflation and the economy.
Bain Capital to sell stake up to $267 million in Axis Bank via block deal: Sources
Private investment firm Bain Capital will offload its stake worth $267 million in Axis Bank via a block deal, CNBC TV-18 reported on June 14, citing sources. The offer price range for the block deal is likely to be Rs 966 to Rs 977.70, the persons privy to the development added. This would mark a discount of 0-1.4 percent as against the current market price.
Bain Capital is one of the minority shareholders in the private lender, with a total stake of 1.3 percent as per the last update shared with the exchanges. The US-based company, via the upcoming block deal, will sell 0.7 percent out of its 1.3 percent holding, as per the CNBC TV-18 report.
Oil prices
Oil prices fell on Wednesday after the US Federal Reserve projected more interest rate hikes this year, worrying markets about demand just hours after government data showed an unexpected, large build in US crude oil stocks.
Brent crude futures settled $1.09, or 1.5 percent, lower at $73.20 a barrel, while US West Texas Intermediate (WTI) crude closed $1.15, or 1.7 percent, lower at $68.27. Both benchmarks had climbed more than 1.5 percent earlier in the session. They rose more than 3 percent the previous day on expectations of rising fuel demand after China’s central bank lowered a short-term lending rate.
Dollar
The Dollar index traded 0.33 percent lower in futures at 102.58, whereas the value of one dollar hovered near Rs 82.04.
Gold
Gold prices pared gains on Wednesday after the US Federal Reserve kept interest rates unchanged, as widely expected, but pointed to more rate hikes down the year. Spot gold was up 0.1 percent at $1,945.19 per ounce. US gold futures settled 0.5 percent up at $1,968.9.
FII and DII
Foreign institutional investors (FII) purchased shares worth Rs 1,714.72 crore, whereas domestic institutional investors (DII) offloaded shares worth Rs 654.77 crore on June 14, provisional data from the National Stock Exchange shows.
(With inputs from Reuters and other agencies.)
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