The market is likely to open marginally lower today as the SGX Nifty indicates a negative start for the broader index, with a loss of 60 points after opening the session at 18,827 points. SGX futures touched a high of 18,876 in early trade on June 26.
The BSE Sensex fell 260 points to 62,979, in the previous close while the Nifty50 declined 106 points to 18,666 and formed a bearish candlestick pattern on the daily scale, while there was Double Top kind of pattern formation on the hourly charts and dark cloud cover candlestick pattern on the weekly timeframe, which is broadly negative.
The pivot point calculator suggests that the Nifty may get support at 18,648, followed by 18,622 and 18,580, whereas in case of upside, 18,731 can be a key resistance area for the index, then 18,757 and 18,799.
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 60 points on Monday. SGX futures stood at 18,814 points.
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US Markets
Stock futures were flat on Sunday evening as Wall Street looked to see if the market rally could find more momentum in the final week of June. Futures tied to the Dow Jones Industrial Average ticked up 55 points, or less than 0.2 percent. S&P 500 futures and Nasdaq 100 futures were also higher by about 0.2 percent.
The market rally sputtered last week. The Nasdaq Composite fell 1.44 percent, breaking an eight-week win streak. The S&P 500 dipped 1.01 percent, ending a five-week streak. The Dow, which has underperformed in 2023, shed 1.67 percent to halt a three-week positive run.
“The SPX and NDX finally saw some profit-taking after the significant rally seen over the past couple of months,” Rick Bensignor of Bensignor Investment Strategies said in a note to clients. Segments of the market is still on track for a banner first half of the year. The tech-heavy Nasdaq Composite is up nearly 29 percent year-to-date, and the S&P 500 is up more than 13 percent. The Dow, however, is up less than 2 percent.
European Markets
European stock markets closed lower on Friday after four sessions of declines. The Stoxx 600 index closed 0.3 percent lower, with most sectors in negative territory. Oil and gas stocks fell 2.2 percent as oil prices traded lower, and mining stocks dropped 1.7 percent. Health care and telecoms stocks led modest gains, each closing 0.7 percent higher respectively.
Siemens Energy, the spinoff of the German conglomerate, plunged 37 percent after ditching its profit outlook for the year because of issues in its wind turbine division. FTSE closed 0.54 percent lower at 7461 points. DAX closed 0.99 percent lower at 15,829 points.
Asian Markets
Asia-Pacific markets started the final week of June mixed, even as US markets snapped a multi-week winning streak Friday. In an early Monday note, CMC Markets analyst Tina Teng, wrote that “economic concerns took central stage again as recession fears mounted, with spiking rates in both Europe and the US rattling global markets”.
Over the weekend, Europe also saw a brief rebellion by the Wagner private military group in Russia, pushing oil prices up on Monday.
In Japan, the Nikkei 225 fell 0.38 percent and continued its retreat, while the Topix fell 0.34 percent. Japan’s service sector prices climbed 1.6 percent on-year in May, unchanged from the previous month’s figure.
South Korea’s Kospi bucked the trend and gained marginally, while the Kosdaq saw a larger gain of 0.14 percent. In Australia, the S&P/ASX 200 fell 0.41 percent, dragged by energy stocks. Hong Kong’s Hang Seng index is also poised to fall, with futures at 18,764 compared to the HSI’s close of 18,889.97.
FPIs continue to bet on Indian equities; infuse Rs 30,600 cr in June so far
Foreign portfolio investors (FPIs) continue to show confidence in Indian equities and pumped more than Rs 30,600 crore in June so far, as they bet on the country's stable macroeconomic profile and sturdy corporate earnings outlook. This came following a nine-month high investment of Rs 43,838 crore in equities in May, Rs 11,631 crore in April and Rs 7,936 crore in March, data with the depositories showed.
Before that, FPIs had pulled out over Rs 34,000 crore during January-February. Going forward, fund inflows could turn volatile, especially after the US Fed reiterated its stance that more interest rate hikes may be needed to bring inflation below its target, albeit at a slower pace, Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities, said.
Seven IPOs totalling over Rs 1,600 crore to hit Dalal Street this week
The primary market seems to be gathering steam, with three main board initial public offerings (IPOs) and four from the small and medium enterprises (SME) segment set to hit Dalal Street this week. The seven issues are expected to raise a total of over Rs 1,600 crore. The SME issues are slated to mop up Rs 110 crore.
Drone manufacturing company ideaForge Technology will be the first IPO of the week, opening on June 26. It is seeking to raise Rs 567 crore at the upper end of the price band of Rs 638–672 per share.
The public issue comprises a fresh issue of shares worth Rs 240 crore and an offer-for-sale (OFS) of 48.69 lakh shares by the promoters and investors. For employees of the company, 13,112 equity shares are reserved, which would be allotted at a discount of Rs 32 per share to the final issue price.
Oil prices
Oil prices fell on Friday, headed for a weekly decline as traders worried interest rate hikes could sap demand despite signs of tighter supplies including lower US crude stocks.
In a second straight day of losses, Brent crude settled down 0.39 percent, or 29 cents, at $73.85 barrel. US West Texas Intermediate (WTI) crude fell 0.50 percent, or 35 cents, at $69.16 a barrel.
Dollar
The Dollar index traded 0.47 percent higher in futures at 102.87, whereas the value of one dollar hovered near Rs 81.99.
Gold
Gold prices on Friday notched their biggest weekly percentage fall in over four months, weighed by a stronger dollar and hawkish stance on rate hikes from Federal Reserve officials.
Spot gold was up 0.3 percent to $1,918.79 per ounce, after rising as much as 1.2 percent on a retreat in US bond yields and closed 2.1 percent lower for the week. US gold futures gained 0.3 percent to $1,928.90.
FII and DII
Foreign institutional investors (FII) sold shares worth Rs 344.81 crore, while domestic institutional investors (DII) offloaded shares worth Rs 684.01 crore on June 23, provisional data from the National Stock Exchange shows.
With inputs from Reuters and other agencies.
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