A few cues from the market in India and abroad that could help you with your trade today.
The market snapped a three-day winning streak to close sharply lower on June 12 as traders turned cautious ahead of the factory and retail inflation data expected later in the day.
The BSE Sensex fell 193.65 points to 39,756.81, dragged by banking & financials and auto stocks. The Nifty 50 managed to close a tad above 11,900 after hitting an intraday low of 11,866.35, down 59.40 points to 11,906.20. The index formed a bearish candle resembling a Bearish Belt Hold pattern on the daily charts.
The market breadth was negative throughout the day - About 1,468 shares declined against 1,022 advancing shares on the BSE. The Nifty Midcap index lost 0.8 percent and Smallcap index fell 0.24 percent.
According to the Pivot charts, the key support level is placed at 11,860.83, followed by 11,815.47. If the index starts moving upward, key resistance levels to watch out are 11,957.03 and 12,007.87.
The Nifty Bank index closed at 30,965.70, down 299.75 points on June 12. The important Pivot level, which will act as crucial support for the index, is placed at 30,843.97, followed by 30,722.23. On the upside, key resistance levels are placed at 31,154.87, followed by 31,344.04.
Stay tuned to Moneycontrol to find out what happens in currency and equity markets today. We have collated a list of important headlines from across news agencies.
Wall Street slips; banks fall with prospect of rate cut, energy drops
Wall Street ended down slightly on Wednesday, with bank stocks declining as prospects of a US interest rate cut rose and energy shares tumbling along with oil prices. The S&P 500 energy index slid 1.4%, the most among the 11 S&P sectors, as demand worries drove US crude prices down 4%. The day’s losses made energy the worst-performing S&P 500 sector for the year-to-date.
The Dow Jones Industrial Average fell 43.68 points, or 0.17%, to 26,004.83, the S&P 500 lost 5.88 points, or 0.20%, to 2,879.84 and the Nasdaq Composite dropped 29.85 points, or 0.38%, to 7,792.72.
Asian stocks subdued
Asian stocks stuttered on Thursday, dogged by the uncertainty over an intractable US-China trade dispute, while oil prices flirted with five-month lows thanks to higher US crude inventories and a bleaker demand outlook.
MSCI’s broadest index of Asia-Pacific shares outside Japan ticked down 0.1%, slipping from a one-month high touched earlier this week, while Japan’s Nikkei lost 0.3%.
Trends on SGX Nifty indicate a flat to negative opening for the broader index in India, a fall of 8.5 points or 0.07 percent. Nifty futures were trading around 11,917-level on the Singaporean Exchange.
Oil steadies after big plunge on high inventories, lower demand forecasts
Oil prices steadied on Thursday, after slumping as much as 4% in the previous session to nearly five-month lows on the back of a further buildup in US crude stockpiles and worries about lower demand growth.
Brent crude futures were up 12 cents, or 0.2%, at 60.09 by 0035 GMT. They fell 3.7% on Wednesday to settle at $59.97 a barrel. US West Texas Intermediate crude futures were also 12 cents, or 0.2%, higher at $51.26. They ended 4.0% lower in the previous session at $51.14 a barrel.
Industrial output at 3.4% in April 2019
India’s industrial output grew 3.4 percent year-on-year (YoY) in April, according to the Index of Industrial Production (IIP) data released by the government on June 12. The Industrial output, or factory output, is the closest approximation for measuring the economic activity in the country's business landscape. The Indices of Industrial Production for the mining, manufacturing and electricity sectors for April 2019 grew 5.1 percent, 2.8 percent and 6.0 percent as compared to April 2018.
Primary goods production for April stood at 5.2 percent and that of capital goods was at 2.5 percent. Production of consumer durables grew at 2.4 percent and consumer non-durables grew at 5.2 percent for the month of April.
India's retail inflation inches up to 3.05% in May
India’s retail inflation for May inched up to 3.05 percent from 2.92 percent in April, driven by an increase in vegetable prices. The latest price data released by the Central Statistics Office showed that consumer price index (CPI)-based inflation, which measures changes in shop-end prices, remained comfortably within the Reserve Bank of India's target level of 4 percent.
The latest inflation imprint is higher than the 2.99 percent recorded in April, which is a revised figure, but below 4.87 percent recorded in May 2018.
Rupee firms up by 10 paise to 69.34 against US dollarThe Indian rupee June 12 appreciated by 10 paise to close at 69.34 to the US dollar, marking the second straight session of gains driven by easing crude
At the interbank foreign exchange market, the rupee opened at 69.38 a dollar and advanced to a high of 69.28 during the day. It finally settled at 69.34, up 10 paise against its previous close. The Indian currency has strengthened by 31 paise in the last two sessions.
PE/VC deals plunge 54% in May to $2.8 b
Deal making through the private equity/venture capital routes saw a sharp 54 percent dip in May at a low $2.8 billion due to fewer large deals, according a report. However, rainmakers are hopeful that formation of a strong government can help the scenario.
There were 82 deals involving PE/VC investments of $2.8 billion in May, which is a 54 percent decline year-on- year, EY India said June 12 and attributed the fall to fewer large deals, as there were only five deals of over $100 million during the month.
The dip comes amid data release of sagging GDP growth fuelled largely by a fall in consumption which has been the one of the favourite for investors as well.
FDI flows to India grew 6% in 2018 to $42 bn: UN report
Foreign Direct Investment (FDI) to India grew by 6 per cent to $42 billion in 2018, with strong inflows in the manufacturing, communication and financial services sectors, and cross-border merger and acquisition activities, according to a UN report that ranked India among the top 20 host economies for FDI inflows in 2017-18.
The World Investment Report 2019, released by the UN Conference on Trade and Development (UNCTAD) June 12, said global FDI flows slid by 13 percent in 2018 to $1.3 trillion from $1.5 trillion the previous year – the third consecutive annual decline.
However, FDI inflows to developing countries in Asia rose by 3.9 percent to $512 billion in 2018, with growth occurring mainly in China, Hong Kong, Singapore, Indonesia and other ASEAN countries, as well as India and Turkey. The Asian region remained the world's largest FDI recipient, absorbing 39 percent of global inflows in 2018, up from 33 per cent in 2017.
Four stocks under F&O ban period on NSE
For June 13, IDBI Bank, PC Jeweller, Reliance Capital and Reliance Infrastructure are under the F&O ban period. Securities in ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.With inputs from Reuters & other agencies
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