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

Trends on SGX Nifty indicate a flat opening for the broader index in India with a loss of 14 points.

July 05, 2022 / 07:01 AM IST
Stock Market Today:

Stock Market Today:

Indian equity market is poised to open on a cautious note as trends on SGX Nifty indicate a flat opening for the broader index in India with a loss of 14 points.

The BSE Sensex climbed 327 points to 53,235 yesterday while the Nifty50 rose 83 points to 15,835 and formed a bullish candle on daily charts.

As per pivot charts, the key support level for the Nifty is placed at 15,714 followed by 15,593. If the index moves up, key resistance levels to watch out for are 15,904 and 15,974.

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:

Asian Markets

Close

Shares in the Asia-Pacific traded higher as investors look ahead to the Reserve Bank of Australia’s rate decision. The Nikkei 225 in Japan gained 1.13%, while the Topix index rose 0.66%. South Korea’s Kospi increased 1.51%. In Australia, the S&P/ASX 200 was mildly lower. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.23%.

SGX Nifty

Trends on SGX Nifty indicate a flat opening for the broader index in India with a loss of 14 points. The Nifty futures were trading around 15,809 levels on the Singaporean exchange.

Oil prices

Brent crude futures extended gains on Tuesday as a strike in Norway is expected to disrupt oil and gas output, fanning tight supply worries. Brent crude futures rose 82 cents, or 0.7%, to $114.32 a barrel by 0105 GMT after a 2.4% gain on Monday. US West Texas Intermediate crude climbed $2.58, or 2.4%, to $111.01 a barrel, from Friday's close. There was no settlement for WTI on Monday because of the July 4 US public holiday.

Govt to stick to 6.4% fiscal deficit target, taking steps to address high oil prices: Reports

The Centre is committed to stick to the fiscal deficit target of 6.4 percent despite strong global headwinds, reports citing government sources said on July 4. The Ministry of Finance is confident of achieving the target set at the start of this fiscal, as the country's macroeconomic fundamentals are strong, the sources told news agency PTI.

Officials who are privy to the development reiterated government's commitment to the 6.4 percent fiscal deficit target while speaking to wire agency ANI, but added that the soaring crude oil prices will push India's import bills. The current account deficit will be higher if the crude oil prices surge further, they underlined.

India to address volatility in rupee against dollar - Government Official

India is trying to "address volatility" in the Indian rupee that has tumbled to record lows against the dollar in recent weeks, a government official said on Monday, amid concerns of a widening trade deficit and selloff of assets by foreign investors.

The rupee has plunged 6% against the dollar this year, weighed down by broad strength in the greenback and as investors retreated from the domestic share markets.

"When oil prices are this high, obviously CAD (current account deficit) will go up. Last several years India has been bridging CAD with capital flows. This year there is headwinds on capital flows," the official who did not want to be named, told reporters.

Trade deficit shoots up 62% YoY to $25.6 billion in June

India's merchandise trade deficit rose to $25.6 billion in June 2022, 62 percent higher than June 2021 as a continuing global commodity supercycle kept the prices of key energy and metal imports high.

Data released by the Commerce and Industry Ministry on Monday showed that while exports in June rose by 16.8 percent to $37.9 billion, imports shot up by 51 percent to $63.5 billion. The resultant $25.6 billion worth of trade deficit - the difference between total exports and imports - has given the Commerce Department a new headache, an official said.

The monthly trade deficit has been rising for the past few months. It had risen from $20.4 billion in April to $23.3 billion in May earlier.

South Korea June inflation hits 24-yr high, fans expectations of big rate hike

South Korea's June inflation accelerated to the fastest pace since the Asian financial crisis, fanning expectations the central bank could deliver a 50 basis point rake hike for the first time next week to cool prices and curb capital outflows.

The consumer price index (CPI) rose 6.0% in June from a year earlier, government data showed on Tuesday, the fastest since November 1998 and exceeding the central bank's 2% target for the 15th consecutive month.

Japan's service sector activity grows at fastest rate in over 8 years - PMI

Japan's services sector activity expanded at the fastest pace in over eight years in June as the easing of coronavirus curbs boosted sentiment among businesses such as those in tourism.

The final au Jibun Bank Japan Services purchasing managers' index (PMI) rose to a seasonally adjusted 54.0, marking the fastest pace of expansion since October 2013. That was stronger than May's final 52.6 growth, though it remained below a 54.2 flash reading for June released last month.

Corrtech International gets Sebi's go-ahead to float IPO

Corrtech International, a pipeline laying solutions provider, has received capital markets regulator Sebi's go-ahead to raise funds through an Initial Public Offering (IPO). The public issue comprises fresh issuance of equity shares worth Rs 350 crore and an offer for sale of 40 lakh shares by promoters, according to the Draft Red Herring Prospectus (DRHP).

Equirus Capital is the sole book running lead manager to the issue.

FII and DII data

Foreign institutional investors (FIIs) net sold Rs 2,149.56 crore worth of shares, whereas domestic institutional investors (DIIs) remained net buyers to the tune of Rs 1,688.39 crore worth of shares on July 4, as per provisional data available on the NSE.

With inputs from Reuters & other agencies
Sandip Das
first published: Jul 5, 2022 07:01 am
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