The market is expected to open in the red as trends in the SGX Nifty indicate a negative opening for the broader index in India with a loss of 52 points.
The BSE Sensex fell 135 points to 51,360, while the Nifty50 declined 67 points to 15,293 and formed Doji kind of a pattern on the daily charts, after a large bearish candlestick pattern in previous session. During the week, the index corrected 5.6 percent and formed Bearish Belt Hold pattern on the weekly scale.
As per the pivot charts, the key support level for the Nifty is placed at 15,184, followed by 15,075. If the index moves up, the key resistance levels to watch out for would be 15,401 and 15,509.
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
US stocks closed with a modest bounce on Friday but still suffered the biggest weekly percentage decline in two years as investors wrestled with the growing likelihood of a recession while global central banks tried to stamp out inflation.
The Dow Jones Industrial Average fell 38.29 points, or 0.13 percent, to 29,888.78, the S&P 500 gained 8.07 points, or 0.22 percent, at 3,674.84 and the Nasdaq Composite added 152.25 points, or 1.43 percent, at 10,798.35.
Asian Markets
Asian shares were unable to sustain a rare rally on Monday as Wall Street futures shed early gains amid worries that the US Federal Reserve would this week underline its commitment to fighting inflation with whatever rate hikes were needed.
MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.8% and Tokyo's Nikkei 1.4 percent.
SGX Nifty
Trends in the SGX Nifty indicate a negative opening for the broader index in India with a loss of 52 points. The Nifty futures were trading around 15,263 levels on the Singaporean exchange.
US economy has 40% chance of being in recession next year: Bank of America
BofA Securities economists see roughly a 40 percent chance of a US recession next year, with inflation remaining persistently high.
They expect US Gross Domestic Product growth to slow to almost zero by the second half of next year "as the lagged impact of tighter financial conditions cools the economy," while they see just a "modest" rebound in growth in 2024, according to a research report Friday.
"Our worst fears around the Fed have been confirmed: they fell way behind the curve and are now playing a dangerous game of catch up," Ethan Harris, global economist at BofAS wrote, adding that the firm expects the Fed to hike interest rates to "above 4 percent."
US manufacturing output softens; leading indicator extends decline
Production at US factories unexpectedly fell in May, the latest sign of cooling economic activity as the Federal Reserve aggressively tightens monetary policy to tame inflation.
Manufacturing output dipped 0.1 percent last month, the first decline since January, after increasing 0.8 percent in April, the Fed said. Economists polled by Reuters had forecast factory production gaining 0.3 percent. Output rose 4.8 percent compared to May 2021.
Yen tanks as BOJ sticks to stimulus, caps volatile week for FX
The Japanese yen tumbled against the dollar on Friday after the Bank of Japan bucked a wave of tightening and stuck with its ultra-accommodative stance, adding to soaring volatility in currency markets hit by a series of rate hikes this week.
Currency markets have been roiled by one of the biggest runs of monetary policy tightening in decades, including the Federal Reserve's mid-week three-quarters-of-a-percent rate increase, its biggest since 1995, and the Swiss National Bank's surprise decision to hike rates by 0.5 percent.
Japan's central bank went against the current on Friday, keeping all of its policy settings unchanged and vowing to defend its bond yield cap of 0.25 percent with unlimited buying.
Net direct tax mop-up rises 45% to over Rs 3.39 lakh crore till mid-June
The net direct tax collections till mid-June this fiscal increased 45 percent to over Rs 3.39 lakh crore, buoyed by decent advance tax mop-up, the Income Tax department said on Friday. The net direct tax collection of over Rs 3.39 lakh crore includes Corporation Tax (CIT) at over Rs 1.70 lakh crore and Personal Income Tax (PIT), including Security Transaction Tax (STT), at over Rs 1.67 lakh crore.
"The figures of Direct Tax collections for the Financial Year 2022-23, as on June 16, 2022, show that net collections are at Rs 3,39,225 crore compared to Rs 2,33,651 crore over the corresponding period of the preceding year, representing an increase of 45 percent over the collections of the preceding year," the Central Board of Direct Taxes (CBDT) said.
Bitcoin slides below $20,000 to lowest level in 18 months
Bitcoin tumbled more than 13 percent at one point on Saturday, crashing below the closely watched $20,000 level to its weakest level in 18 months, as it extended a slide on investor worries about growing troubles in the industry and the general pull-back from riskier assets.
Bitcoin, the biggest cryptocurrency , had dropped around 13.7 percent by Saturday afternoon to a low of $17,593 - its weakest level since December 2020 - before pulling back up to $18,556, still down 9.22 percent.
FII and DII data
Foreign institutional investors (FIIs) have net sold Rs 7,818.61 crore worth of shares, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 6,086.92 crore worth of shares on June 17, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Three stocks – Indiabulls Housing Finance, RBL Bank, and Delta Corp – remained under the NSE F&O ban for June 20 as well. 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
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
