Moneycontrol
Last Updated : Jun 09, 2020 07:56 AM IST | Source: Moneycontrol.com

What changed for the market while you were sleeping? Top 10 things to know

Trends on SGX Nifty indicate a positive opening for the index in India with a 35 points gain.

The Indian stock market is expected to open in the green tracking global cues on the back of increased economic activity. SGX Nifty was up 35 points. The Nifty futures were trading at 10,217 on the Singaporean Exchange

The S&P BSE Sensex fell over 500 points from its intraday high of 34,927 while the Nifty50 closed below 10,200 levels on June 8. The Sensex ended the day 83 points higher at 34,370, while the Nifty50 closed with gains of 25 points to 10,167.

According to pivot charts, the key support level for Nifty is placed at 10,082.3, followed by 9,997.1. If the index moves up, key resistance levels to watch out for are 10,290.6 and 10,413.7.

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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 Markets

The Nasdaq posted a record closing high on Monday, becoming the first of the major indexes to confirm a new bull market, while the S&P 500 ended in positive territory for the year as expectations for a swift recovery from a coronavirus-driven downturn increased.

The Dow Jones Industrial Average rose 461.46 points, or 1.7%, to 27,572.44, the S&P 500 gained 38.46 points, or 1.20%, to 3,232.39 and the Nasdaq Composite added 110.66 points, or 1.13%, to 9,924.75.

Asian Markets

Asian stocks were set to climb on Tuesday as confidence in an economic recovery pushed the Nasdaq benchmark to a record high, although doubts about crude supply cuts were likely to keep oil prices under pressure.

Australian S&P/ASX 200 futures were up 0.67% and Hong Kong's Hang Seng index futures rose 0.52%. However, Japan's Nikkei 225 futures were down 0.04%.

Oil prices rise on optimism easing of lockdowns to spur fuel demand

Oil prices climbed on Tuesday, paring losses from the previous session, as markets broadly rose on growing confidence in a global recovery with pandemic lockdowns easing.

U.S. West Texas Intermediate (WTI) crude futures rose 1.3%, or 50 cents, to $38.69 a barrel at 0134 GMT, after dropping by $1.36 on Monday. Brent crude futures rose 1.4%, or 56 cents, to $41.36 a barrel. The benchmark contract fell $1.50 on Monday, snapping a seven-day streak of gains.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the index in India with a 35 points gain. The Nifty futures were trading at 10,217 on the Singaporean Exchange around 07:30 hours IST.

India economy to contract by 3.2% in FY21: World Bank

India's economy will shrink by 3.2 percent in the current fiscal, the World Bank said on Monday as it joined a chorus of international agencies that are forecasting a contraction in growth rate due to the coronavirus lockdown halting economic activity.

In its latest edition of the Global Economic Prospect, the World Bank downgraded its projection of India by a massive negative nine percent. However, the Indian economy is expected to bounce back in 2021, the World Bank said.

RBI proposes comprehensive framework for sale of loans

The Reserve Bank on Monday proposed a comprehensive framework for sale of loan exposures, which could be standard, sub-standard or non-performing assets (NPAs), as part of the overall exercise to deepen the market for lending.

"A dynamic secondary market for bank loans will also ensure proper discovery of credit risk pricing associated with each exposure and will be useful as a leading indicator for impending stress, if any, provided that the volumes are sufficiently large," the RBI said while issuing the comprehensive draft framework for sale of loan exposure.

SIP inflows reduce further in May, but marginal uptick in new investor accounts

Retail investments in mutual funds slowed down further for the second successive month in May. Inflows through the systematic investment plan (SIP) route registered a dip of Rs 253 crore. SIP contribution slipped to Rs 8123 crore in May compared to Rs 8376 crore in April 2020, as per the data released by the Association of Mutual Funds in India (AMFI). Around 6.51 lakh SIPs either completed the tenure or were discontinued by investors in May 2020, as compared to 5.4 lakh in April. For May 2019, that number stood at 5.86 lakh.

Global economy to plunge into worst recession since WW-II: World Bank

The global economy, which has plunged into a severe contraction, will shrink by 5.2 percent this year due to the massive shock of the coronavirus pandemic and the shutdown measures to contain it, the World Bank said on Monday.

The COVID-19 recession is the first since 1870 to be triggered solely by a pandemic, World Bank President David Malpass said in his foreword to the latest edition of the Global Economic Prospect report released on Monday. "The speed and depth with which it has struck, suggests the possibility of a sluggish recovery that may require policymakers to consider additional interventions," he said.

Housing finance firms comfortably placed to meet debt obligations: ICRA

Having raised nearly Rs 34,000 crore from the debt market and the National Housing Bank (NHB) in the past two months, housing finance companies (HFCs) are comfortably placed to meet their debt obligations despite lower collections, according to a report. The total maturing debt of HFCs for 2020-21 is estimated to be Rs 2.9-3.2 lakh crore, of which Rs 1.4 lakh crore is accounted for by debt markets, rating agency ICRA said in the report.

"As HFCs raised approximately Rs 34,000 crore through debt market route and from NHB during April and May 2020, it is expected that most of the HFCs will maintain an adequate liquidity profile for meeting their debt obligations even with lower collection levels (50-80 per cent ) in the portfolio," ICRA Vice-President (Financial Sector Ratings) Supreeta Nijjar said in the report.

Results on June 9

Hero Motocorp, Bombay Dyeing, Century Enka, eClerx Services, Gujarat Pipavav Port, Graphite India, Kirloskar Ferrous Industries, KRBL, Mangalore Refinery & Petrochemicals, PSP Projects, Tata Steel Long Products, TeamLease Services, Xelpmoc Design.

FII and DII data

Foreign institutional investors (FIIs) bought shares worth Rs 813.27 crore, while domestic institutional investors (DIIs) sold shares worth Rs 1,238.23 crore in the Indian equity market on June 8, provisional data available on the NSE showed.

4 stocks under F&O ban on NSE

BHEL, Vodafone Idea, Just Dial and NCC are under the F&O ban for June 9. Securities in the 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
First Published on Jun 9, 2020 07:32 am
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