The market is expected to open in the green as trends in the SGX Nifty indicate a gap-up opening for the broader index in India with a gain of 158 points.
The Sensex rallied 462 points to 52,728, while the Nifty50 climbed 143 points to 15,699 and formed a small-bodied bullish candle on the daily chart in the week ended last Friday. The index gained 2.6 percent during the week and formed a bullish candle on the weekly scale.
According to pivot charts, for the Nifty, the key support level is 15,629 followed by 15,560. If the index moves up, the key resistance levels to watch out for are 15,759 and 15,819.
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 main indices posted solid gains on Thursday, fuelled by strong performance from defensive and tech shares that outweighed declines for economically sensitive groups as worries persisted about a potential recession.
The Dow Jones Industrial Average rose 194.23 points, or 0.64 percent, to 30,677.36, the S&P 500 gained 35.84 points, or 0.95 percent, to 3,795.73 and the Nasdaq Composite added 179.11 points, or 1.62 percent, to 11,232.19.
Shares in the Asia-Pacific traded higher on Monday as investors assess inflation and recession fears. Japan’s Nikkei 225 jumped nearly 1% in early trade, while the Topix rose 0.94 percent. In Australia, the S&P/ASX 200 advanced 0.41 percent. The Kospi in South Korea gained 0.91 percent. MSCI’s broadest index of Asia-Pacific shares rose 0.28 percent.
Trends on SGX Nifty indicate a gap-up opening for the broader index in India with a gain of 158 points. The Nifty futures were trading around 15,859 levels on the Singaporean exchange.
Oil slides more than $1 as G7 debate Iran nuclear deal, Russia
Oil prices slipped more than $1 a barrel on Monday as global economic concerns depressed the oil demand outlook while investors eyed the G7 meeting this week for possible moves on Russian oil exports and a revival of the Iran nuclear deal.
Brent crude futures slipped $1.42, or 1.3 percent, to $111.70 a barrel by 0010 GMT after rebounding 2.8 percent on Friday. US West Texas Intermediate crude was at $106.08 a barrel, down $1.54, or 1.4 percent, following a 3.2 percent gain in the previous session.
Manufacturing companies see 50.2% surge in FY22 net profit despite costly raw materials
Net profits of manufacturing companies surged by 50.2 percent during 2021-22, the input cost pressures notwithstanding, the Reserve Bank of India said on Friday. Net profit also increased for the information technology (IT) companies, whereas the non-IT services sector continued to record losses at the aggregate level, it said.
The data on the performance of the private corporate sector during 2021-22 drawn from abridged financial results of 3,166 listed non-government non-financial (NGNF) companies. Operating profit margins remained healthy for all the three sectors. Net profit margins remained stable for manufacturing and IT companies, whereas it remained in the negative terrain for non-IT services companies.
The data further showed that private corporate sales and profitability recorded healthy growth in during 2021-22 as the effects of the Covid-19 pandemic subsided and economic activities recovered, especially in the second half of the year. "Sales of 1,865 listed private manufacturing companies witnessed broad-based recovery and expanded by 36.7 percent during 2021-22 as compared with a contraction of 2.8 percent in the preceding year; both volume and price components contributed to the higher growth and it was also aided by favourable base effects," it said.
Demand strong, but cost optimisation also in focus: Accenture CEO
Cost optimisation, along with growth, is now the focus area for clients, Accenture’s leadership said in an earnings call after declaring its Q3FY22 results.
“We see strong demand and we're not seeing a change in decision-making. What we are seeing is a shift depending and the industry and the market on what clients are asking for. For example, in industries like the consumer goods industry, you're seeing a lot more focus on costs than a year ago… You're seeing more investment going into ‘help me do more with less’. At the core of that is cloud, data, AI,” CEO Julie Sweet said in the call.
Accenture on Thursday, June 23, reported results with revenue-beating estimates and coming in at $16.2 billion. However, it moderated its forecast for the fiscal on the back of negative foreign exchange impact and increasing inflation. Accenture said revenues for the quarter reflect a foreign-exchange impact of -5 percent and for Q4, expects revenue to be in the range of $15 billion to $15.5 billion, assuming a -8 percent foreign exchange impact.
FII and DII data
Foreign institutional investors (FIIs) net sold Rs 2,353.77 crore worth of shares, while domestic institutional investors (DIIs) remained net buyers to the tune of Rs 2,213.44 crore worth of shares on June 24, provisional data available on the NSE showed.
Banking body urges decisive wave of global rate hikes to stem inflation
The world's central bank umbrella body, the Bank for International Settlements (BIS), has called for interest rates to be raised "quickly and decisively" to prevent the surge in inflation turning into something even more problematic.
Surging energy and food prices mean inflation in many places is now its hottest in decades. But the usual remedy of ramping up interest rates is raising the spectre of recession, and even of the dreaded 1970s-style "stagflation", where rising prices are coupled with low or negative economic growth.
"The key for central banks is to act quickly and decisively before inflation becomes entrenched," Agustín Carstens, BIS general manager, said as part of the body's post-meeting annual report published on Sunday.
Global M&A deals brace for dry spell as boardrooms put expansion on backburner
Global dealmaking is entering an arid season as raging inflation and a stock market rout curb the appetite of many corporate boards to expand through acquisitions. Russia's invasion of Ukraine in February and fears that an economic recession is looming dealt a blow to merger and acquisition (M&A) activity in the second quarter.
The value of announced deals dropped 25.5% year-on-year to $1 trillion, according to Dealogic data.
"Companies are standing back from M&A in the short term as they are more focused on the impact of a recession on their business. The timing for dealmaking will come but I don't think it's quite there yet," said Alison Harding-Jones, Citigroup Inc's EMEA M&A head.
M&A activity in the United States plunged 40% to $456 billion in the second quarter, while Asia Pacific was down 10%, Dealogic data showed.
Stocks under F&O ban on NSE
Four stocks—Delta Corp, Indiabulls Housing Finance, RBL Bank, and Sun TV Network—are under the NSE F&O ban for June 27. 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