A few cues from the market in India and abroad that could help you with your trade today.
After a volatile session, indices closed marginally in red on May 31. However, during the week, it gained on hopes of big bang reforms from the newly formed Modi government.
Nifty fell 23.10 points to 11,922.80 after Modi government allocated cabinet portfolio on May 31, forming bearish candle on daily charts while for the week, the index gained 0.66 percent and formed small bullish candle on the weekly scale. For May, the index gained 1.5 percent.
Experts said that unless 12,041—the record high that Nifty hit during election result week—is crossed, sharp upside momentum won't be possible in the near term.
According to the Pivot charts, the key support level is placed at 11,821.8, followed by 11,720.8. If the index starts moving upward, key resistance levels to watch out are 12,031.5 and 12,140.2.
The Nifty Bank index closed at 31,375.40, down 161.70 points on May 31. The important Pivot level, which will act as crucial support for the index, is placed at 30,737.8, followed by 30,100.2. On the upside, key resistance levels are placed at 31,898.3, followed by 32,421.2.
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 skids, jolted by Trump's surprise tariff threat on Mexico
US stocks dropped on Friday, as the S&P 500 closed out the month with its biggest May slump since 2010, after President Donald Trump's surprise threat of tariffs on Mexico fuelled fears that a trade war on multiple fronts could lead to a recession.
The Dow Jones Industrial Average fell 354.84 points, or 1.41%, to 24,815.04, the S&P 500 lost 36.8 points, or 1.32%, to 2,752.06 and the Nasdaq Composite dropped 114.57 points, or 1.51%, to 7,453.15.
Asian markets slide as trade wars stoke global recession fears
Asian share markets slipped to multi-month lows on Monday on mounting worries growing Sino-US tensions and Washington’s new tariff threats against Mexico could tip the global economy into a recession.
The E-mini futures for S&P500 dropped 0.5% in early Asian trade to 2,738, near their March low of 2,722 while Japan’s Nikkei skidded 1.1% to a four-month low. MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed in early trade, but held barely above last week’s four-month low.
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 52 points or 0.44 percent. Nifty futures were trading around 11,977-level on the Singaporean Exchange.
GDP growth slips to 5.8% in the last quarter of 2018-19; annual GDP at 5-year low
India's gross domestic product (GDP) grew 5.8 percent in January-March, official data released on May 31 showed, confirming fears of a slowdown, as the new government assumed office amid expectations of a wide ranging policy impetus to turnaround the economy that is nursing multiple pain points.
"Real" or inflation-adjusted GDP grew 6.8 percent in 2018-19, lower than previous year's 7.2 percent, data released by the Central Statistics Office (CSO) showed. The growth in GDP was slowest since 2014-15.
Oil prices slide as trade wars roil financial markets
Oil prices fell more than 1% on Monday, extending losses of over 3% from Friday, when crude markets racked up their biggest monthly losses in six months amid stalling demand and as trade wars fanned fears of a global economic slowdown.
Front-month Brent crude futures were at $61.16 at 0109 GMT. That was 83 cents, or 1.3%, below Friday’s close. US West Texas Intermediate (WTI) crude futures were at $52.88 per barrel, down 62 cents, or 1.2% from its last settlement.
Rupee settles 17 paise up at 69.70 vs USD
Snapping its three-session losing streak, the rupee May 31 rose by 17 paise to close at 69.70 against the US dollar on weakening of the greenback in overseas markets and easing crude oil prices. On a weekly basis, the rupee declined by 34 paise.
At the interbank foreign exchange (forex), the domestic currency witnessed heavy volatility. The local unit opened at 69.78 a dollar and during the day it touched a low of 69.92 and high of 69.68 amid the allocation of key portfolios in the newly elected government.
Growth of core sector industries slows to 2.6% in April
The growth of eight core infrastructure sectors slowed down to 2.6 percent in April, due to negative growth in crude oil, natural gas and fertiliser output. During April 2018, the expansion rate of eight infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity - stood at 4.7 percent.
Coal generation growth was flat at 2.8 pet cent in April 2019, said the government data. The output of electricity and refinery products was 5.8 per cent and 4.3 per cent, respectively. Crude oil, natural gas, and fertilizers sectors posted decline in growth during the month. The infrastructure sector growth has impact on the Index of Industrial Production (IIP) as these segments account for about 41 per cent of the total factory output.
India's forex reserves up by $1.99 bn to $419.99 bn
India's forex reserves increased by $1.994 billion to $419.992 billion for the week ended May 24 on swelling up of the core currency assets, the Reserve Bank said May 31. The overall reserves had declined by $2.05 billion to $417.99 billion in the previous reporting week. The reserves had touched an all-time high of $426 billion in April 2018.
In the reporting week, foreign currency assets, which are a major component of the overall reserves increased $1.991 billion to $392.188 billion, the apex bank said.
Unemployment rate at 6.1% in 2017-18, confirms govt data
Confirming unemployment rate projected in a pre-election leaked report, the government May 31 said joblessness in the country was 6.1 percent of total labour force during 2017-18, the highest in 45 years.
The data released by the labour ministry on a day when Modi 2.0 Cabinet took charge, showed 7.8 percent of all employable urban youth being jobless, while the percentage for the rural was 5.3 percent.
Fiscal deficit lower at 3.39% in 2018-19
The fiscal deficit for 2018-19 came in at 3.39 percent of GDP, marginally lower than 3.4 percent estimated in the revised estimates of the Budget, mainly due to increase in non-tax revenue and lower expenditure.
In absolute terms, fiscal deficit at the end of March 31, 2019, stood at Rs 6.45 lakh crore as against Rs 6.34 lakh crore in the revised estimates of Budget. The fiscal deficit for 2018-19 works out to be 3.39 percent of GDP, as per data released by Controller General of Accounts (CGA).
FPIs remain buyers for fourth consecutive month; infuse Rs 9,031 cr in MayOverseas investors pumped in a net amount of Rs 9,031 crore into the Indian capital markets in May on expectations of more business-friendly measures
following the BJP's landslide victory in the general elections.
According to the latest depositories data, foreign portfolio investors (FPIs) infused a net sum of Rs 7,919.73 crore into equities and Rs 1,111.42 crore in the debt market during May 2-31, taking the cumulative net investment to Rs 9,031.15 crore.
China raises maximum 25% punitive tariffs on $60 bn US goods
China on June 1 raised tariffs to maximum 25 percent on USD 60 billion worth of US products, in retaliation to the US raising punitive tariffs on USD 200 billion worth of Chinese goods. In May, after the Sino-US trade talks in Washington ended without a deal, the Trump administration imposed additional tariffs on USD 200 billion in Chinese goods to 25 percent from 10 percent.
The new tariffs range between 10 percent and 25 percent, state-run China Daily said quoting a statement by the Customs Tariff Commission of the State Council. The list of goods includes beauty products, sports equipment, musical instruments, wine, condoms, diamonds, wood, fabric and toys.
India's per-capita income rises 10% to Rs 10,534 a month in FY19
The country's per-capita income is estimated to have risen by 10 percent to Rs 10,534 a month during the financial year ended March 2019, government data on national income showed May 31. In 2017-18, the monthly per-capita income had stood at Rs 9,580.
"The per-capita income at current prices during 2018-19 is estimated to have attained a level of Rs 1,26,406 (Rs 10,533.83 monthly) as compared to the estimated for the year 2017-18 of Rs 1,14,958 (Rs 9,579.83 a month), showing a rise of 10 per cent," according to the annual national income and GDP 2018 -19 data released by the Ministry of Statistics and Programme Implementation (MoSPI).With inputs from Reuters & other agenciesSubscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.