A few cues from the market in India and abroad that could help you with your trade today.
After a rangebound trade, the market recouped its losses in the final hour and closed with marginal gains on June 7, driven by select banking and financials and IT stocks. The BSE Sensex gained 86.18 to close at 39,615.90, while the Nifty50 rose 26.90 points to 11,870.70 and formed a small bullish candle which resembles a Doji on daily charts.
However, for the week, the Sensex lost 0.25 percent, while the Nifty50 shed 0.44 percent and formed a Spinning Top pattern on the weekly charts.
Both technical patterns indicate indecisiveness on Dalal Street, which pointed towards the consolidation in the coming week, experts said, adding the range could 11,700 to 12,000 on the Nifty.
According to the Pivot charts, the key support level is placed at 11,794.3, followed by 11,717.9. If the index starts moving upward, key resistance levels to watch out are 11,922.3 and 11,973.9.
The Nifty Bank index closed at 31,066.55, up 209.15 points on June 7. The important Pivot level, which will act as crucial support for the index, is placed at 30,749.26, followed by 30,431.93. On the upside, key resistance levels are placed at 31,261.76, followed by 31,456.93.
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 rallies on hopes of US rate cut, trade progress
Wall Street’s major indexes charged higher on Friday, as sharply slowing US job growth boosted hopes for Federal Reserve interest rate cuts while optimism about potential progress in US trade fights with China and Mexico added to risk appetites.
The Dow Jones Industrial Average rose 263.28 points, or 1.02%, to 25,983.94, the S&P 500 gained 29.85 points, or 1.05%, to 2,873.34 and the Nasdaq Composite added 126.55 points, or 1.66%, to 7,742.10.
Asian shares gain as Mexico tariffs averted
Asian shares rose on Monday after the United States dropped its threat to impose tariffs on Mexico in a deal to combat illegal migration from Central America, while weak US jobs data raised hopes for US interest rate cuts.
Japan’s Nikkei gained 1.2 percent and South Korea’s Kospi rose 0.55 percent while Australian markets were closed for a holiday, with MSCI’s index of Asia-Pacific shares outside Japan almost flat.
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 56 points or 0.47 percent. Nifty futures were trading around 11,953-level on the Singaporean Exchange.
US, Mexico reach agreement to prevent tariffs: Donald Trump
US President Donald Trump says he has suspended plans to impose tariffs on Mexico, tweeting that the country "has agreed to take strong measures" to stem the flow of Central American migrants into the United States. "I am pleased to inform you that The United States of America has reached a signed agreement with Mexico," Trump tweeted on June 7, saying the "Tariffs scheduled to be implemented by the US on Monday, against Mexico, are hereby indefinitely suspended."
He said Mexico has agreed to work to "stem the tide of Migration through Mexico, and to our Southern Border" and said those steps would "greatly reduce, or eliminate, Illegal Immigration coming from Mexico and into the United States."
According to a "US-Mexico Joint Declaration" released by the State Department late Friday, the US said it will work to greatly expand a program that returns asylum-seekers who cross the southern border to Mexico while their claims are adjudicated.
Oil prices rise on likelihood of ongoing OPEC+ supply cuts
Oil prices rose on Monday after Saudi Arabia said producer club OPEC and Russia were likely to keep withholding supplies, and in relief that the United States and Mexico averted a trade war that would have damaged the global economy.
Front-month Brent crude futures, the international benchmark for oil prices, were at $63.71 at 0017 GMT, 42 cents, or 0.7%, above Friday’s close. US West Texas Intermediate (WTI) crude futures were at $54.43 per barrel, 44 cents, or 0.8%, above their last settlement.
SBI to link home loans to repo rate from July
After linking its short-term loans and large savings deposits rates to the repo rate, the largest lender State Bank on Friday said it will introduce repo-linked home loans from July.
The lender has also reduced interest rate on cash credit account (CC) and overdraft (OD) customers with limits above Rs 1 lakh, after the RBI reduced the repo rate by 25 basis points on Thursday. "We will introduce repo-linked home loans from July 1," SBI said in a late evening statement.
Consumer confidence falls in May on worries about jobs, economy: RBI Survey
Consumer confidence declined in May 2019 due to deterioration in sentiments on jobs, price levels and the economy, according to an RBI Survey. After a sharp upsurge to 104.6 in the March 2019 round, the consumer confidence index fell to 97.3, suggesting that Indians turned pessimistic about jobs and price levels, the Consumer Confidence Survey (CCS) showed.
While there were negative sentiments with sign of deterioration compared to last round with respect to employment situation and price level, the respondent expressed positive sentiments with sign of deterioration on the economic situation, income and spending behaviour, the survey said. "Weakening confidence is primarily attributable to the deterioration in sentiments on the economic situation and employment," RBI said.
Goldman Sachs sees FY20 Indian GDP growth accelerating to 7.2%
American brokerage Goldman Sachs on June 7 pegged the Indian GDP growth to accelerate to 7.2 percent in 2019-20 on lower oil prices, political stability and removal of infrastructure bottlenecks. Risks to the estimate, which is higher than the RBI's projection for a 7 percent growth, are on the "downside" because of the issues in the non-bank lenders, it said.
It can be recalled that the growth had dipped to a nearly five year low of 5.8 percent for the March quarter at 5.8 percent, dragging down FY19 growth to 6.8 percent. In a report that came a day after the policy review by RBI, in which key rates were cut 0.25 percent to spur growth, the brokerage said it expects an acceleration in GDP to 7.2 percent.
ASSOCHAM for raising tax exemption limit to Rs 5 lakh in Budget
The basic exemption limit for an individual income tax payee should be raised to Rs 5 lakh from Rs 2.50 lakh at present, in the backdrop of inflationary impact over the years, industry chamber ASSOCHAM has said. It has suggested this in a proposal to the government as part of its pre-Budget memorandum.
"Considering the inflation over the years, tax exemption limit should be increased from Rs 2,50,000 to Rs 5,00,000," the chamber's memorandum to the Finance Ministry stated. The government is scheduled to present its first full Budget on July 5, for the current financial year.
US leaves door open to China on trade talks at G20
The United States is open to further negotiations with China on their ongoing trade battle but any potential deal will wait until the two leaders meet at the end of the month, Washington's top finance official said on June 8.Speaking to reporters on the sidelines of a meeting of G20 finance ministers and central bank chiefs, Treasury Secretary Steven Mnuchin warned that
Washington would press on with tariffs if a deal could not be reached.
"We were on the way to a historic deal. If they want to come back to the table and complete the deal on the terms that we were continuing to negotiate, that will be great. If not, as the president said, we'll move on with tariffs," said Mnuchin.
Rupee drops 18 paise to 69.46 vs USDThe rupee on Friday fell by 18 paise to close at 69.46 against the US currency on strengthening of the greenback in overseas markets and rising crude oil
prices. Forex traders said that weakened Asian currencies also added to the pressure on the domestic unit.
However, gains in domestic equities supported the rupee and capped its losses to some extent, they added. At the interbank foreign exchange (forex) market, the domestic currency opened higher at 69.23 per dollar, but lost ground during the day to fall to 69.52. The rupee finally settled at 69.46, down 18 paise over its previous close.
RBI revises NPA norms, gives banks 30 days to review stressed loans
The Reserve Bank of India (RBI) on June 7 issued a revised circular on resolution of stressed assets. RBI has said that lenders must resolve non-performing assets (NPA) over Rs 2,000 crore within 180 days. In February 2018, RBI had issued a framework on resolution of stressed assets under which banks were asked to initiate resolution or restructuring of loans worth Rs 2,000 crore or more even if there was a single day of default.
However, the Supreme Court had called this framework 'ultra vires'. Following this, RBI has revised the circular. The central bank has said that a lender should initiate a resolution plan before the loan default.
FPIs pour in Rs 7,095 crore in first week of June
Continuing their buying spree, foreign investors have pumped in a net amount of Rs 7,095 crore into the Indian capital markets during the first week of June in anticipation of continued policy reforms. Foreign portfolio investors (FPIs) have been net buyers for the previous four consecutive months.They had invested a net Rs 9,031.15 crore in May, Rs 16,093 crore in April, Rs 45,981 crore in March and Rs 11,182 crore in February in the capital markets
(both equity and debt). According to the latest depositories data, FPIs invested a net sum of Rs 1,915.01 crore in equities and Rs 5,180.43 crore in the debt segment during Jun 3-7, taking the cumulative net investment to Rs 7,095.44 crore.
Three stocks under F&O ban period on NSEFor June 10, DHFL, IDBI Bank and PC Jeweller 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 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.