Top 10 things to know before the market opens

Global shares edged lower on Tuesday, as new coronavirus outbreaks in Asia vied with strong US and European consumer confidence, and investors speculated about whether the Federal Reserve would accelerate its timetable to end easy monetary policy.

The Dow Jones Industrial Average rose 20.24 points, or 0.06%, to 34,303.51, the S&P 500 gained 2.05 points, or 0.05%, to 4,292.66 and the Nasdaq Composite added 28.67 points, or 0.2%, to 14,529.17.

Asian Markets

Asian markets were in positive territory in early trade on Wednesday. Japan’s Nikkei 225 rose 0.55% in early trade, and the Topix edged up 0.45%. South Korea’s Kospi was up 0.31%.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the index in India with a 28 points gain. The Nifty futures were trading at 15,816 on the Singaporean Exchange around 07:30 hours IST.

Japan's May factory output posts biggest monthly drop in a year

Japan's industrial output posted the biggest monthly drop in a year in May, as a sharp fall in car production threatened to undermine the country's economic recovery just weeks before Tokyo is set to host the Olympic Games.

Factory output slumped 5.9% in May from the previous month, official data showed on Wednesday, hit by declines in the manufacturing of cars and production machinery to post its largest monthly drop since May last year.

Sebi board clears Mutual Fund rules, fund houses may need to invest more in NFOs

Sebi on Tuesday approved amendment to mutual fund rules, which may require fund houses to invest more in their new fund offerings depending on risk level to ensure more skin-in-the-game. The current rule requires an investment of one per cent of the amount raised in New Fund Offer (NFO) or an amount of Rs 50 lakh, whichever is less, Sebi said in a statement after its board meeting.

"The board approved amendment to Sebi (Mutual Funds) Regulations, 1996, to provide for investment of a minimum amount as skin in the game in the mutual fund schemes by AMCs based on the risk associated with the scheme, instead of the current requirement of one per cent of the amount raised in NFO or an amount of Rs 50 lakh, whichever is less," Sebi said. Among others, the Sebi board has cleared the proposal to amend the FPI rules to permit eligible Resident Indian Fund Managers (other than individuals) to be constituents of Foreign Portfolio Investors (FPIs).

FM Sitharaman asks ministries to surpass capex target set for FY22

Finance Minister Nirmala Sitharaman on Tuesday exhorted ministries to aim to achieve more than their capital expenditure (capex) targets for this fiscal, highlighting that enhanced spending will play a critical role in revitalising the economy post-pandemic.

During a meeting with senior officials to review the status of implementation of Budget announcements and measures to expedite infrastructure investment, she also urged the ministries and their Central Public Sector Enterprises (CPSEs) to ensure clearance of Micro, Small and Medium Enterprises (MSME) dues by July 31.

Industrial loan growth remained in negative zone during fiscal year 2021: RBI

Credit growth to industry remained in the negative territory during all the four quarters of FY21, the Reserve Bank of India (RBI) said in a quarterly report on June 29. A decline in private consumption and investments by companies during the first year of the COVID pandemic and a shift to the markets for fund-raising may have led to a decline in loan growth by companies.

“Working capital loans in the form of cash credit, overdraft and demand loans, which accounted for a third of total credit, contracted during 2020-21,” the central bank said in a release. Growth in credit to the private corporate sector declined for the sixth successive quarter in January-March 2021 and its share in total credit stood at 28.3 percent.

RBI in a bind amid weak growth, surging inflation; may not hike rates till Q1 FY23: Report

The Reserve Bank of India is in a bind, given the present situation of inflation heating to above the mandated band and weakening growth, a British brokerage said on Tuesday. The central bank may hike the repo rate only by the first quarter of next fiscal (April-June 2022) and continue to maintain the accommodative stance in the interim, Barclays' chief India economist Rahul Bajoria said in a note.

It can be noted that after responding with deep rate cuts initially, the RBI has limited itself to using non-conventional tools to help the growth process in the economy. However, with the surge in inflation lately – the headline number came at 6.3 percent for May – there have been questions over the tolerance of the central bank. Weakening growth prospects and surging inflation place the RBI in a bind.

Results on June 30:

More than 900 companies will release their quarterly earnings on June 30 including SpiceJet, Vodafone Idea, Alankit, Anant Raj, Archies, BF Utilities, BGR Energy Systems, Binani Industries, Dish TV India, Emami Realty, Fiem Industries, GM Polyplast, Indowind Energy, IRCON International, IVRCL, Liberty Shoes, McNally Bharat Engineering, MEP Infrastructure Developers, Ortel Communications, Sadbhav Engineering, Sanwaria Consumer, Sequent Scientific, Simbhaoli Sugars, Simplex Infrastructures, SREI Infrastructure Finance, Ucal Fuel Systems, Vikas EcoTech, VIP Clothing, Zenith Exports, and Zodiac Clothing.

FII and DII data

Foreign institutional investors (FIIs) net bought shares worth Rs 116.63 crore, while domestic institutional investors (DIIs) net purchased shares worth Rs 1,810.05 crore in the Indian equity market on June 29, as per provisional data available on the NSE.

With inputs from Reuters & other agencies