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 140 points.
BSE Sensex declined 94 points to 55,675, while the Nifty50 fell 15 points to 16,570 and formed a bullish candle on the daily charts as the closing was higher than opening levels.
As per the pivot charts, the key support level for the Nifty is placed at 16,472, followed by 16,375. If the index moves up, the key resistance levels to watch out for are 16,639 and 16,708.
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
US stocks ended a choppy session slightly higher on Monday, helped by gains in Amazon.com and other mega-cap growth shares, while persistent worries over inflation and interest rates kept a lid on the market. Shares of Amazon.com Inc rose 2% and were the biggest positive for the S&P 500 and Nasdaq after the online retailer split its shares 20 for 1.
The Dow Jones Industrial Average rose 16.08 points, or 0.05%, to 32,915.78, the S&P 500 gained 12.89 points, or 0.31%, to 4,121.43 and the Nasdaq Composite added 48.64 points, or 0.4%, to 12,061.37. Twitter Inc shares slipped 1.5% after billionaire Elon Musk said he might walk away from his buyout offer if the social media company fails to provide data on spam and fake accounts.
Asian Markets
Shares in Asia-Pacific were mixed in Friday morning trade as investors await the Reserve Bank of Australia’s latest interest rate decision. The Nikkei 225 in Japan held close to the flatline in early trade, while the Topix index edged 0.3% higher. In South Korea, the Kospi slipped 0.74%. Australia’s S&P/ASX 200 declined fractionally.
SGX Nifty
Trends on SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 140 points. The Nifty futures were trading around 16,432 levels on the Singaporean exchange.
Oil prices drop below $120 per barrel on OPEC+ deal, Saudi Arabia pricing
Oil prices settled slightly lower after choppy trade on Monday, buoyed by Saudi Arabia raising its July crude prices but amid doubts that a higher output target for OPEC+ oil producers would ease tight supply.
Brent crude fell 21 cents, or 0.2 percent, to settle at $119.51 a barrel after touching an intraday high of $121.95. US West Texas Intermediate (WTI) crude futures fell 37 cents, or 0.3 percent, to settle at $118.50 a barrel after hitting a three-month high of $120.99. The benchmark fell by $1 earlier in the session.
China May services activity contracts for third straight month
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.
RBI releases standard asset provisioning norms for upper layer NBFCs
The Reserve Bank of India (RBI) on June 6 said that upper-layer non-banking finance companies (NBFCs) have to keep 0.25 percent provision for the funded amount outstanding in the case of individual housing loans and loans to small and micro enterprises, while releasing norms on standard assets provisioning for such shadow lenders. A standard asset is one which does not disclose any problems and does not carry more than normal risk attached to the business.
Further, for housing loans extended at teaser rates, upper layer NBFCs need to provide 2 percent of the funded outstanding amount, which will decrease to 0.40 percent after one year from the date on which the rates are reset at higher rates, if the accounts remain standard, the RBI said in a release.
India in talks to increase Russian oil imports from Rosneft
India is looking to double down on its Russian oil imports with state-owned refiners eager to take more heavily-discounted supplies from Rosneft PJSC as international players turn down dealings with Moscow over its invasion of Ukraine.
State processors are collectively working on finalising and securing new six-month supply contracts for Russian crude to India, said people with knowledge of the companies’ procurement plans. Cargoes are being sought on a delivered basis from Rosneft, with the seller set to handle shipping and insurance matters, they said.
Reserve right to terminate deal: Elon Musk in fresh letter to Twitter
Billionaire Elon Musk on June 6 said he "reserves the right" to terminate the deal to take over Twitter, as he accused the social media giant of “resisting and thwarting" his request for data related to spam accounts.
The Tesla chief executive had, in a shock announcement made last month, said he was putting the $44-billion acquisition deal on "temporary hold" till it is ascertained whether fake users on the microblogging site account for less than five percent of the total userbase.
While Twitter has maintained that the spam accounts on its platform are up to an estimated five percent, Musk has sought an independent analysis to verify the claim.
Bitcoin gains over 5% to $31,441.76
Bitcoin rose 5.2% to $31,441.76 at 2000 GMT on Monday, adding $1,552.78 to its previous close. The world's biggest and best-known cryptocurrency is down 34.8% from the year's high of $48,234 on March 28. Ether , the coin linked to the ethereum blockchain network, rose 3.17% to $1,862.14 on Monday, adding $57.16 to its previous close.
FII and DII data
Foreign institutional investors (FIIs) have net sold Rs 2,397.65 crore worth of shares, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 1,940 crore worth of shares on June 6, as per provisional data available on the NSE
With inputs from Reuters & other agencies
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