The market is expected to open in the red as trends in SGX Nifty indicate a negative opening for the broader index in India with a loss of 84 points.
The BSE Sensex shed more than 660 points from day's high and closed 49 points lower to 55,769, while the Nifty50 declined 44 points to 16,584 and formed bearish candle on the daily charts at the closing on Friday, indicating nervousness among market participants.
As per the pivot charts, the key support level for the Nifty is placed at 16,503, followed by 16,423. If the index moves up, the key resistance levels to watch out for are 16,729 and 16,875.
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
Wall Street's three major stock indexes ended lower on Friday after a solid jobs report ate in to hopes for a pause in the Federal Reserve's aggressive policy-tightening which is needed to cool decades-high inflation.
The technology-heavy Nasdaq led the declines, falling 2.5% as shares of market heavyweights Apple Inc and Tesla Inc were the biggest drags on the market.
The Dow Jones Industrial Average fell 348.58 points, or 1.05%, to 32,899.7, the S&P 500 lost 68.28 points, or 1.63 percent, to 4,108.54 and the Nasdaq Composite dropped 304.16 points, or 2.47 percent, to 12,012.73.
Asian Markets
Asian shares made a muted start on Monday as caution gripped ahead of a critical reading on US inflation, while the euro gained on the yen amid wagers the European Central Bank will take a major step toward policy tightening this week.
MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.1%, while Japan's Nikkei eased 0.3 percent. S&P 500 futures and Nasdaq futures both edged up 0.1 percent.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the broader index in India with a loss of 84 points. The Nifty futures were trading around 16,505 levels on the Singaporean exchange.
Oil jumps after Saudi Arabia hikes crude prices
Oil prices rose more than $2 in early trade on Monday after Saudi Arabia raised prices sharply for its crude sales in July, an indicator of how tight supply is even after OPEC+ agreed to accelerate its output increases over the next two months.
Brent crude futures were up $1.80, or 1.5 percent, at $121.52 a barrel at 2319 GMT after touching an intraday high of $121.95, extending a 1.8 percent gain from Friday. US West Texas Intermediate (WTI) crude futures were up $1.63, or 1.4 percent, at $120.50 a barrel after hitting a three-month high of $120.99. The contract gained 1.7 percent on Friday.
US adds 390,000 jobs in May, unemployment steady at 3.6%
American employers added 390,000 jobs last month, the government reported Friday, a sign of a slowdown in hiring but still a better-than-expected result amid a shortage of workers. The jobless rate held steady at 3.6 percent for the third consecutive month, just a tenth of a point above the pre-pandemic level in February 2020, the Labor Department said.
The labour force participation rate edged up very slightly to 62.3 percent, a sign more workers could be coming off the sidelines to rejoin the labor force, which would ease pressure on wages.
Centre approves sugar export applications of 62 mills totaling 10 Lakh MT
Soon after the Union government restricted sugar exports to 100 lakh metric tonnes, on June 5 it approved the export of 62 sugar mills and exporters for a quantity of 10 lakh metric tonnes.
"Directorate of Sugar and Vegetable Oils, Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution, in exercise of powers conferred by Section 3 of the Essential Commodities Act, 1955 (10 of 1955) read with clause 4 and 5 of the Sugar (Control) Order, 1966, grant permission to exporters to export a total quantity of 10 LMT of sugar within 90 days from the date of this order," according to a notification dated June 5.
FII and DII data
Foreign institutional investors (FIIs) have net sold Rs 3,770.51 crore worth of shares, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 2,360.51 crore worth of shares on June 3, as per provisional data available on the NSE.
China May services activity contracts for third straight month - Caixin
China's services activity contracted for a third straight month in May, pointing to a slow recovery ahead despite the easing of some COVID lockdowns in Shanghai and neighbouring cities, a private business survey showed on Monday.
The Caixin services purchasing managers' index (PMI) rose to 41.4 in May from 36.2 in April, edging up slightly as authorities began to roll back some of the strict restrictions that have paralysed the financial city of Shanghai and roiled global supply chains.
US recession is avoidable if Fed can ‘thread the needle’
To hear some of the chatter in financial markets and corporate America’s C-suites, a US recession is imminent and inevitable. Not necessarily so. While the danger of a downturn has risen as growth has slowed, most economists argue a contraction is unlikely in the immediate future, given the continued strength of the jobs market and the more than $2 trillion in excess cash on household balance sheets.
Based on the critical assumption that the worst economic effects of Covid-19 and the war are behind, Moody’s Analytics chief economist Mark Zandi is betting the Fed can pull it off. “I still think we’re going to navigate through without a recession. But obviously it’s going to be very, very tight because risks are very high,” he said.
FPIs outflow continues for 8th straight month; pull out nearly Rs 40,000 crore from equities in May
Continuing its heavy selling spree for the eighth consecutive month, foreign investors pulled out nearly Rs 40,000 crore from the Indian equity market in May on fears of an aggressive rate hike by US Federal Reserve that dented investor sentiments.
With this, net outflow by foreign portfolio investors (FPIs) from equities reached at Rs 1.69 lakh crore so far in 2022, data with depositories showed.
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!
