Stock Market Today: Top 10 things to know before the market opens today

Stock Market News

The market is expected to open on a cautious note as trends in the SGX Nifty indicate a flat opening for the broader index in India with a loss of 11 points.

The BSE Sensex fell 153 points to 52,694, while the Nifty50 declined 42 points to 15,732 and formed a bullish candle which resembles Inverted Hammer kind of pattern on the daily charts.

As per the pivot charts, the key support level for the Nifty is placed at 15,642, followed by 15,551. If the index moves up, the key resistance levels to watch out for are 15,840 and 15,948.

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

The S&P 500 ended lower on Tuesday as the index was unable to bounce from a sharp sell-off in the prior session with a key policy statement from the Federal Reserve on deck that will reveal how aggressive the central bank's policy path will be.

Analyst expectations had largely been predicting that the Fed would hike the key policy rate by 50 basis points at the conclusion of its meeting on Wednesday.

The Dow Jones Industrial Average fell 151.91 points, or 0.5 percent, to 30,364.83, the S&P 500 lost 14.15 points, or 0.38 percent, to 3,735.48 and the Nasdaq Composite added 19.12 points, or 0.18 percent, to 10,828.35.

Asian Markets

Shares in Asia-Pacific slipped in Wednesday morning trade following overnight losses on Wall Street as the S&P 500 fell deeper into bear market territory.

The Nikkei 225 in Japan slipped fractionally in early trading while the Topix index dipped close to 0.1 percent. South Korea’s Kospi fell 0.17 percent. In Australia, the S&P/ASX 200 declined 0.29 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.05 percent lower.

SGX Nifty

Trends in the SGX Nifty indicate a flat opening for the broader index in India with a loss of 11 points. The Nifty futures were trading around 15,710 levels on the Singaporean exchange.

RBI asks banks to comply with norms on financing govt entities

The Reserve Bank of India (RBI) on June 14 asked banks to comply with regulations pertaining to financing government entities.

“We have come across instances where banks have not been strictly complying with our extant instructions on assessment of commercial viability, ascertainment of revenue streams for debt servicing obligations and monitoring of end use of funds in respect of their financing of infrastructure/ housing projects of government owned entities,” the RBI said in a release.

Further, banks have also been found to have violated the RBI’s instructions which inter alia require that in case of projects undertaken by government-owned entities, term loans should be sanctioned only for corporate bodies, the central bank said.

OPEC sees global oil demand growth slowing in 2023: Sources

World oil demand growth will slow in 2023, OPEC delegates and industry sources said, as surging crude and fuel prices help drive up inflation and act as a drag on the global economy.

Fuel use has rebounded from the 2020 pandemic-induced slump and is set to exceed 2019 levels this year even as prices hit record highs. But high prices have eaten into growth projections for 2022 and fed into expectations for slower growth in 2023.

The Organization of Petroleum Exporting Countries (OPEC) is expected to publish its first forecast for 2023 demand in July. Its forecast, along with that of the Paris-based International Energy Agency, will be watched closely for pointers on how OPEC supply policy might develop.

India's wholesale price inflation runs at 30-year high, makes rate hikes more likely

High global energy and raw material prices combined with a weak rupee fuelled the fastest annual rise in India's wholesale prices in more than 30 years, raising expectations for the central bank to order more interest rate hikes.

Wholesale prices akin to producer prices, climbed 15.88 percent in May from year ago levels, staying in double-digits for a 14th straight month, and was, according to economists, India's highest since September 1991. A Reuters poll of analysts had forecast a rise of 15.10 percent.

China set to keep medium-term rate unchanged on Wednesday, poll shows

China's central bank is expected to keep unchanged for a fifth straight month on Wednesday the borrowing costs on its medium-term policy loans, a Reuters survey of 31 traders and analysts showed. That expectation, held by 30 of the respondents, or nearly 97 percent, comes despite a pledge by policymakers to step up support for the world's second-biggest economy, hit by Covid-19 disruptions.

Thirty of the 31 poll respondents forecast no change in the interest rate on the one-year medium-term lending facility (MLF) on Wednesday, when the central bank is set to renew 200 billion yuan ($29.76 billion) worth of such loans.

FII and DII data

Foreign institutional investors (FIIs) have net sold Rs 4,502.25 crore worth of shares, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 3,807.60 crore worth of shares on June 14, as per provisional data available on the NSE.

Oil prices slip ahead of expected US Fed interest rate hike

Oil prices dropped on Wednesday on worries over fuel demand ahead of a U.S. Federal Reserve meeting which is expected to see the central bank to hike rates by at least 75 basis points to combat inflation.

WTI crude futures fell 8 cents, or 0.1 percent, to $118.85 a barrel by 0008 GMT. Brent crude futures fell 26 cents, or 0.2 percent, to $120.91 a barrel.

Surging inflation has led investors and oil traders to brace for a big move by the Fed this week - what could be the largest US interest rate hike in 28 years.

Stocks under F&O ban on NSE

Three stocks – Indiabulls Housing Finance, RBL Bank, and Delta Corp – are under the NSE F&O ban for June 15. 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 and other agencies