The market is likely 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 40 points.
The BSE Sensex jumped 934 points or 1.8 percent to 52,532, while the Nifty50 rose 289 points or 1.88 percent to 15,639 and formed a bullish candle on the daily charts after Doji candles in the previous two sessions.
As per the pivot charts, the key support level for the Nifty is placed at 15,470, followed by 15,301. If the index moves up, the key resistance levels to watch out for are 15,757 and 15,876.
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:
Wall Street's major indices jumped over 2 percent on Tuesday as investors scooped up shares of mega-cap growth and energy companies after the stock market swooned last week on worries over a global economic downturn. All 11 major S&P 500 sectors gained, as stocks rebounded broadly after the benchmark index last week logged its biggest weekly percentage decline since March 2020.
The Dow Jones Industrial Average rose 641.47 points, or 2.15 percent, to 30,530.25, and the S&P 500 gained 89.95 points, or 2.45 percent, at 3,764.79. The Nasdaq Composite added 270.95 points, or 2.51 percent, at 11,069.30.
Shares in the Asia-Pacific region traded mixed on Wednesday, as Wall Street bounced back after a turbulent week. Japan’s Nikkei 225 gave up early gains to sit below the flatline, while the Topix was 0.14 percent higher. The Kospi fell 1.1 percent, while the Kosdaq was declined 1.41 percent.
Trends on SGX Nifty indicate a negative opening for the broader index in India with a loss of 40 points. The Nifty futures were trading around 15,582 levels on the Singaporean exchange.
Oversupply of India bonds to drive yields to 8%, StanChart says
A supply glut is set to hit India’s government bond market, and drive benchmark yields toward 8 percent by year-end, according to Standard Chartered Plc. The lender estimates that excess supply of sovereign and state debt may total as much as Rs 6.3 trillion ($81 billion) this fiscal year. That’s likely to further upset a market that’s struggling to cope with rising interest rates and dwindling surplus liquidity, said Parul Mittal Sinha, head of India financial markets at the bank.
“It may keep becoming incrementally more difficult for supply to be absorbed by the market,” said Sinha, who has spent more than a decade trading currencies and rates in London, Singapore and Mumbai. “Supply worries will increase from July and with interest rates normalizing to a higher trajectory and liquidity surplus decreasing – all these three factors can come together.”
Oil prices slide as Joe Biden pushes for US fuel cost cuts
Oil prices skidded in early trade on Wednesday amid a push by US President Joe Biden to bring down soaring fuel costs, including pressure on major US firms to help ease the pain for drivers during the country's peak summer demand.
The US West Texas Intermediate (WTI) crude futures fell $1.34, or 1,2 percent, to $108.18 a barrel at 0031 GMT, while Brent crude futures dropped $1.33, or 1.2 percent, to $113.32 a barrel.
Fed to lift rates by 75 basis points in July, 50 bps in September: Poll
The Federal Reserve will deliver another 75-basis-point interest rate hike in July, followed by a half-percentage-point rise in September, and won't scale back to quarter-percentage-point moves until November at the earliest, according to economists polled by Reuters.
The latest poll results, released on Wednesday before Fed Chair Jerome Powell was due to appear before the Senate Banking Committee as part of his twice-yearly monetary policy testimony to Congress, show momentum is still behind the US central bank doing more, not less, despite rising recession concerns and a steep sell-off in financial markets.
Elon Musk's $44 billion Twitter deal gets board endorsement
Twitter's board has recommended unanimously that shareholders approve the proposed $44 billion sale of the company to billionaire and Tesla CEO Elon Musk, according to a regulatory filing Tuesday.
Musk reiterated his desire to move forward with the acquisition last week during a virtual meeting with Twitter employees, though shares of Twitter remain far below his offering price, signaling considerable doubt that it will happen.
Shares rose about 3 percent to $38.98 before the opening bell Tuesday, far short of the $54.20 per-share that Musk has offered for each share. The company's stock last reached that level on April 5 when it offered Musk a seat on the board before he had offered to buy all of Twitter.
FII and DII data
Foreign institutional investors (FIIs) have net sold Rs 2,701.21 crore worth of shares, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 3,066.41 crore worth of shares on June 21, as per provisional data available on the NSE.
German industry body slashes forecast, warns of recession if Russian gas halted
Germany's BDI industry association slashed its economic forecast for 2022 on Tuesday and said a halt in Russian gas deliveries would make recession inevitable in Europe's largest economy.
German gross domestic product is now expected to grow by 1.5 percent, rather than the 3.5 percent forecast given before war broke out in Ukraine, the BDI said, adding that a return to pre-crisis levels is not expected before the end of the year at the soonest.
Stocks under F&O ban on NSE
Two stocks - Indiabulls Housing Finance, and RBL Bank - remained under the NSE F&O ban for June 22. 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