The Indian stock market is expected to open in the red as trends on SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 148 points.
Positive global cues supported the market yesterday. The BSE Sensex rose 16 points to 53,177, while the Nifty50 climbed 18 points to 15,850 and formed a bullish candle on daily charts.
As per pivot charts, the key support level for the Nifty is placed at 15,743 followed by 15,636. If the index moves up, key resistance levels to watch out for are 15,925 and 15,999.
Nifty Bank underperformed the broader space, falling 169 points to 33,642 on Tuesday. The important pivot level, which will act as a crucial support for the index, is placed at 33,515 followed by 33,388. On the upside, key resistance levels are placed at 33,757 and 33,872.
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:
Stocks on global indexes fell sharply on Tuesday, with the S&P 500 down 2% after a report showed US consumer confidence dropped in June amid concerns about inflation, while oil prices gained for a third day.
The Dow Jones Industrial Average fell 491.27 points, or 1.56%, to 30,946.99, The S&P 500 lost 78.56 points, or 2.01%, to 3,821.55 and the Nasdaq Composite dropped 343.01 points, or 2.98%, to 11,181.54.
Shares in the Asia-Pacific fell on Wednesday after Wall Street’s negative performance on Tuesday. Investors will also be looking forward to Australia’s retail sales report and Japan’s consumer confidence data release.
The Nikkei 225 in Japan was down 0.95%, and the Topix slipped 0.87%. Australia’s S&P/ASX 200 was 0.23% lower. In South Korea, the Kospi dropped 1.53%, while the Kosdaq fell 1.52%.
Trends on SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 148 points. The Nifty futures were trading around 15,705 levels on the Singaporean exchange.
Oil extends gains as major producers flag capacity limits
Oil prices rallied for a third day on Tuesday as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly while western governments agreed to explore ways to cap the price of Russian oil.
Brent crude futures climbed by $1.19, or 1%, to $116.28 a barrel. US West Texas Intermediate (WTI) crude futures rose 96 cents, or 0.9%, to $110.53. Both contracts ended the previous session nearly 2% higher.
GST Council to discuss compensation to states, tax on online gaming today
The GST Council is all set to discuss on June 29 the subject of compensation to states and what Goods and Services Tax (GST) to levy on online gaming and casinos. According to sources aware of the council's discussions on June 28 in Chandigarh, the Group of Ministers' interim report on rate rationalisation was accepted in full on the first day of the meeting.
Another report on GST systems reform, submitted by the Ajit Pawar-led Group of Ministers, was also accepted, the sources said on the condition of anonymity as the deliberations of the council are private. Finance minister Nirmala Sitharaman will address the media on June 29 on the GST Council's decisions. The briefing is likely to be held at 4 pm, the sources said.
Mukesh Ambani steps down as Reliance Jio director, Akash Ambani appointed as chairman
The board of Reliance Jio, the telecom arm of oil-to-retail conglomerate Reliance Industries Ltd (RIL), has appointed Akash Ambani as its chairman, a regulatory filing stated on June 28. Akash Ambani, the son of RIL chief Mukesh Ambani, had joined Jio in 2014. His elevation as the board chairman was announced along with the news of Mukesh Ambani stepping down as the director of Jio.
"The board of directors have at their meeting held on June 27, 2022 noted the resignation of Mr Mukesh D Ambani as director of the company effective from close of working hours on June 27, 2022," Jio informed the stock exchanges.
The board has also "approved the appointment of Akash M Ambani, non-executive director as chairman of the board of directors of the company", it added.
Fed officials promise rate hikes, push back on recession fears
US Federal Reserve policymakers on Tuesday promised further rapid interest-rate hikes to bring down high inflation, but pushed back against growing fears among investors and economists that sharply higher borrowing costs will trigger a steep downturn.
"Many are worried that the Fed might be acting too aggressively and maybe tip the economy into recession," San Francisco Fed President Mary Daly said in an interview on LinkedIn. "I am myself worried that left unbridled, inflation would be a major constraint and threat to the U.S economy and continued expansion."
The Fed, she said, is therefore "tapping the brakes" by raising interest rates to cool demand.
"We are working towards that as quickly as we possibly can, and hopefully Americans everywhere will start to see some relief in their pocketbooks," she said, adding that she expects the economy to slow but not stop growing.
FII and DII data
Foreign institutional investors (FIIs) net sold Rs 1,244.44 crore worth of shares, whereas domestic institutional investors (DIIs) remained net buyers to the tune of Rs 1,205.63 crore worth of shares on June 28, as per provisional data available on the NSE.
US goods trade deficit narrows; inventories increase solidly
The US trade deficit in goods narrowed in May as exports increased strongly, suggesting that trade could contribute to economic growth in the second quarter for the first time in nearly two years.
The report from the Commerce Department on Tuesday also showed solid increases in wholesale and retail inventories. While those gains, combined with a decline in goods imports, should provide a boost to gross domestic product growth this quarter, it also potentially signals slowing domestic demand.
Stocks on F&O ban list on NSE
Two stocks - Delta Corp and Sun TV Network - are on the NSE F&O ban list for June 29. Stocks 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.
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With inputs from Reuters & other agencies