Trends on SGX Nifty indicate a gap up opening for the index in India with a 136 points gain.
Indian markets are expected to open gap up as lockdown has started to ease with the economic revival slowing coming back on track. SGX Nifty indicates a gap up opening for the index in India with a 136 points gain. The Nifty futures were trading at 9,650 on the Singaporean Exchange
The Nifty50 and BSE Sensex rose 6 percent last week backed by positive global cues amid stimulus in China and European nations along with a roaring rally in banking and financials, breaking the three-week losing streak.
On Monday, the market will first react to Q4 FY20 Gross Domestic Product (GDP) data, the downward revision of data of the last three quarters, and the lockdown extension on June 1.
According to pivot charts, the key support level for Nifty is placed at 9,438.52 followed by 9,296.73. If the index moves up, key resistance levels to watch out for are 9,660.47 and 9,740.63.
Stay tuned to Moneycontrol to find out what happens in 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 stocks finished mostly higher on Friday after President Donald Trump announced measures against China in response to new security legislation that were less threatening to the US economy than investors had feared.
The Dow Jones Industrial Average fell 17.53 points, or 0.07%, to 25,383.11, the S&P 500 gained 14.58 points, or 0.48%, to 3,044.31, and the Nasdaq Composite added 120.88 points, or 1.29%, to 9,489.87.
Asian share markets started on a cautious note and gold gained on Monday as images of riots in burning U.S. cities unnerved investors already tense over Washington's power struggle with Beijing.
E-Mini futures for the S&P 500 retreated 0.5% in early action, while gold rose 0.77% to $1,739 an ounce. Oil prices also slipped, while sovereign bonds picked up the usual safe-haven bid. MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2%, as did Japan's Nikkei .
Trends on SGX Nifty indicate a gap up opening for the index in India with a 136 points gain. The Nifty futures were trading at 9,650 on the Singaporean Exchange around 07:30 hours IST.
India FY20 fiscal deficit widens to 4.59% of GDP
India's fiscal deficit for FY20 widened to 4.59 percent of the gross domestic product (GDP) overshooting government target of 3.8 percent by nearly 80 basis points. The revenue deficit for the fiscal was at 3.27 percent of GDP.
GDP at current prices in the year 2019-20 is estimated to attain a level of Rs 203.40 lakh crore, the data released by the Central Statistics Office on May 29 showed. The GDP growth for FY2019-20 was at 4.2 percent, against 6.1 percent in FY 2018-19.
China's May factory activity cools as weak demand curbs output
China's factory activity grew at a slower pace in May but momentum in the services and construction sectors quickened, pointing to an uneven recovery in the world's second-largest economy as businesses emerge from coronavirus-led shutdowns. Manufacturing slowed for a second month although activity has revived from record lows in February, when the government imposed tough travel restrictions, quarantine rules and factory suspensions to curb the spread of the respiratory illness.
The official manufacturing Purchasing Manager's Index (PMI) eased to 50.6 in May from 50.8 in April, National Bureau of Statistics data showed on Sunday, but held above the 50-point mark that separates expansion from contraction on a monthly basis. Analysts had expected a PMI reading of 51.
India's forex reserves soar to record high of $490.04 billion
The country's foreign exchange reserves swelled by $3.005 billion to a lifetime high of $490.044 billion in the week to May 22, mainly on account of a rise in foreign currency assets, RBI data showed on Friday. In the previous week, the reserves had increased by $1.726 billion to $487.04 billion.
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. The gold reserves declined by $127 million to $32.779 billion in the reporting week.
South Korea's May factory activity contracts at fastest rate since 2009 - PMI
South Korea’s manufacturing activity shrank at the sharpest pace in more than a decade in May, as worldwide lockdowns continued to weigh on demand and production, dashing hopes of a near-term recovery from the coronavirus crisis.
The IHS Markit purchasing managers’ index (PMI) edged down to 41.3 in May, the lowest since January 2009 and below 41.6 in April. The headline reading stood below the 50-mark threshold that separates contraction from expansion for a fifth month.
Mutual funds invest Rs 1,230 cr in equities during lockdown
Mutual funds have invested just Rs 1,230 crore in stock markets during the lockdown and industry experts believe they are still waiting for a good "entry point" and maintaining high liquidity for any possible redemptions by corporate houses. Going ahead, the primary factor that will determine mutual fund (MF) investment into equity will be their own inflows from investors. This will be put to test as many retail investors are facing risk of pay cuts and job loss over the next quarter or so, said Vidya Bala, co-founder of Primeinvestor.in.
Overall, mutual funds have made a net investment of Rs 1,230 crore in stocks since the nationwide lockdown was announced on March 24 to tackle the coronavirus pandemic, latest data available with the Securities and Exchange Board of India (Sebi) showed.
Japan's May factory activity sinks as pandemic lockdowns hit demand: PMI
Japan’s factory activity shrank at the fastest pace since March 2009 in May, a private sector survey showed on Monday, as manufacturers widely struggled with the demand blow from the coronavirus pandemic.
The final au Jibun Bank Japan Manufacturing Purchasing Managers’ Index (PMI) fell to a seasonally adjusted 38.4 from 41.9 in March, its lowest since March 2009, and matching a preliminary reading last month.
Institutional investment in real estate drops 12% in FY20 at nearly $4.5 billion: Report
Institutional investment in Indian real estate fell 12 percent to $4.48 billion (around Rs 33,800 crore) last fiscal year on lower economic growth and uncertainty over the coronavirus pandemic, US-based property consultant Vestian said. "The fiscal year 2020 saw a total institutional investment of $4,480 million. This depicted a decline of 12 percent when compared with the quantum of investment in the previous year fiscal year 2019," Vestian said in the report.
SEBI extends power of attorney norms implementation date to Aug 1
Markets regulator SEBI has extended to August 1, 2020 the date for implementing norms pertaining to power of attorney given by clients to trading members or clearing members. The regulator had in February 2020 specified guidelines with regard to margin obligations to be given by way of pledge and re-pledge in the depository system. The provisions of the circular were to come into effect from June 1, 2020.
In a bid to curb the misuse of power of attorney (POA) given by the clients to the trading member (TM) or clearing member (CM), SEBI had prescribed that margin obligations to be given in the form of securities by client will be by way of pledge or re-pledge in the depository system.
FII & DII data
Foreign Institutional Investors (FIIs) bought shares worth net Rs 1,460.71 crore, while Domestic Institutional Investors (DIIs), too, bought net Rs 967.43 crore worth of shares in the Indian equity market on May 29, as per provisional data available on the NSE.With inputs from Reuters & other agencies