The market is likely to open marginally higher today as the SGX Nifty indicates a flat start for the broader index, with a gain of 6 points after opening the session at 18,877 points. SGX futures touched a high of 18,905 in early trade on June 21.
The BSE Sensex climbed 159 points to 63,328, while the Nifty50 rose 61 points to 18,817 and formed a bullish candlestick pattern with a long lower shadow on the daily charts at close on Tuesday.
According to the pivot point calculator, the Nifty may find support at 18,704, followed by 18,662 and 18,593. If the index advances, then 18,841 will be the key resistance, followed by 18,883 and 18,951.
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 higher start for the broader index with a gain of 6 points on Wednesday. SGX futures stood at 18,883.
Trade setup for Wednesday: Top 15 things to know before the opening bell
US Markets
US stock futures were near flat on Tuesday evening as investors took a breather from last week’s market rally. Futures tied to the Dow Jones Industrial Average slipped 21 points, or 0.06 percent. S&P 500 futures inched down by 0.06 percent and Nasdaq 100 futures lost 0.03 percent.
Shares of FedEx fell about 3 percent in extended trading after the shipping giant posted weaker-than-expected revenue for its most recent quarter. Earlier on Tuesday, stocks closed lower for the second trading day in a row. The Dow fell 245.25 points, or 0.72 percent. The S&P 500 slid 0.47 percent, and the Nasdaq Composite lost 0.16 percent.
European Markets
European stock markets closed lower Tuesday as investors remained cautious over the outlook for the global economy, particularly following recent data from China. The benchmark Stoxx 600 index ended the day 0.6 percent lower, with most sectors negative. Autos led losses, down 1.4 percent, while utilities rose 0.7 percent.
German chemicals firm Lanxess extended earlier losses to drop 15.4 percent after announcing it would miss profit forecasts for the year, pulling the DAX index lower. FTSE closed 0.25 percent lower at 7569 points. DAX closed 0.55 percent lower at 16,111 points.
Asian Markets
Asia-Pacific markets are set to fall Wednesday, mirroring moves on Wall Street as stocks came back from the Juneteenth holiday to trade lower on Tuesday.
In Japan, the Nikkei 225 is set for a lower open for a third-straight day, with the futures contract in Chicago at 33,140, and its counterpart in Osaka at 33,080 against its last close at 33,388.91. Japan’s central bank will release its minutes for its April 27-28 meeting, which was the first chaired by new BOJ Governor Kazuo Ueda. Hong Kong’s Hang Seng index also looks set to extend its losses for a third-straight day, with futures at 19,347 compared to the HSI’s close of 19,607.08.
In Australia, futures for the S&P/ASX 200 were at 7,307, lower than the index’s last close of 7,357.8. Should the losses in futures hold, this would break the index’s seven-day winning streak.
Elon Musk meets PM Modi, says Tesla is looking to invest in India
Tesla chief executive Elon Musk said on Tuesday that the electric carmaker is looking to invest in India "as soon as humanly possible."
His comments followed a meeting with the Indian prime minister in New York on Tuesday during Narendra Modi's state visit to the US. A source previously told Reuters that Musk would brief Modi on plans to set up a manufacturing base in India.
"I am confident that Tesla will be in India and will do so as soon as humanly possible," Musk said when asked by reporters about Tesla's plan to invest in India, adding he intended to visit the country next year.
India clears $2.7 billion Micron chip testing plant ahead of Modi US visit: Report
India's cabinet has approved a $2.7 billion plan by Micron Technology to set up a semiconductor testing and packaging unit ahead of Prime Minister Narendra Modi's visit to the U.S. this week, a senior government source told Reuters.
Micron's plant is set to be built in Modi's home state of Gujarat and the government will dole out production-linked incentives worth 110 billion rupees ($1.34 billion), the Indian official added. He declined to be identified ahead of a planned announcement during Modi's U.S. trip.
Piramal Enterprises to sell entire 8.34% stake in Shriram Finance via block deal: Sources
Piramal Enterprises will sell its entire stake of 8.34 percent in Shriram Finance via block deal, CNBC-Awaaz reported on June 20, citing sources who are privy to the development. To offload the stake, Piramal will be required to sell around 3.1 crore shares it currently holds in the non-banking financial company.
The floor price for the block deal is likely to be Rs 1,483 per share, the sources said. This would mark a discount of around 5 percent, as the current market price of Shriram Finance's stock is Rs 1,559.45 on the BSE.
Oil prices
Oil futures eased in choppy trading on Tuesday on forecasts for slower oil demand growth in China, the world’s second-biggest oil consumer, and disappointment with the size of cuts in China’s key lending rates. Adding to the bearish market sentiment, traders noted crude supplies from Iran and Russia have increased in recent weeks.
The price drop, however, was limited by expectations that oil demand will grow in China and India in the second half of the year. Brent futures for August delivery fell 19 cents, or 0.3 percent, to settle at $75.90 a barrel. U.S. West Texas Intermediate (WTI) crude for July delivery fell $1.28, or 1.8 percent, to settle at $70.50 on its last day as the U.S. front-month.
The more active WTI contract for August delivery, which will soon be the US front-month, was down about 1.0 percent at $71.93 a barrel. The crude price decline was led by near 3 percent losses in U.S. gasoline and diesel futures.
Dollar
The Dollar index traded 0.02 percent lower in futures at 102.52, whereas the value of one dollar hovered near Rs 81.99.
Gold
Gold retreated on Tuesday on strong U.S. housing starts data and a firmer dollar, while traders looked to Federal Reserve Chair Jerome Powell’s testimony on Capitol Hill for cues on the interest rate trajectory. Spot gold down 0.7 percent at $1,936.98 per ounce by 14:26 EDT (1826 GMT), after dropping as much as 1 percent earlier in the session. U.S. gold futures settled 1.2 percent lower at $1,947.7.
FII and DII
Foreign institutional investors (FII) sold shares worth Rs 1,942.62 crore, whereas domestic institutional investors (DII) bought shares worth Rs 1,972.51 crore on June 20, provisional data from the National Stock Exchange shows.
With inputs from Reuters and other agencies.
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