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Last Updated : Jul 03, 2020 09:09 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 46 points gain.

The Indian stock market is expected to open in the green tracking global cues after positive US jobs data despite continuous rise in coronavirus cases.

Trends on SGX Nifty indicate a positive opening for the index in India with a 46 points gain.

Nifty surged 122 points, or 1.17 percent, to end at 10,551.70 on July 2 and the Sensex ended 429 points, or 1.21 percent, higher at 35,843.70. According to pivot charts, the key support level for the Nifty is placed at 10,492.07, followed by 10,432.43. If the index moves up, the key resistance levels to watch out for are 10,604.77 and 10,657.83.

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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

Wall Street closed higher and the Nasdaq reached an all-time closing high on Thursday as investors headed into their long holiday weekend buoyed by a record surge in payrolls, which provided assurance that the U.S. economic recovery was well under way.

The Dow Jones Industrial Average rose 92.39 points, or 0.36%, to 25,827.36, the S&P 500 gained 14.15 points, or 0.45%, to 3,130.01 and the Nasdaq Composite added 53.00 points, or 0.52%, to 10,207.63.

Asian Markets

Asian stocks were likely to track a firmer Wall Street session on Friday after strong U.S. jobs data although growing Sino-U.S. tensions and a worrying surge in coronavirus cases is likely to cap gains.

Japan’s Nikkei 225 futures rose 0.45% and Australia’s S&P/ASX 200 futures climbed 0.58%. E-mini futures for the S&P 500 rose 0.14%.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the index in India with a 46 points gain. The Nifty futures were trading at 10,594 on the Singaporean Exchange around 07:30 hours IST.

Oil falls as growing coronavirus cases stoke fuel demand worries

Crude prices fell on Friday as the resurgence of the coronavirus globally and in the United States, the world’s largest oil consumer, dimmed the prospects of fuel demand recovery.

Brent crude futures were down 37 cents, or 0.9%, at $42.77 a barrel as of 0042 GMT, and U.S. West Texas Intermediate (WTI) crude futures fell 34 cents, or 0.8%, to $40.31 a barrel.

China's services sector grows at fastest pace in over a decade in June: Caixin PMI

China’s services sector expanded at the fastest pace in over a decade in June as the easing of coronavirus-related lockdown measures revised consumer demand, a private survey showed on Friday, though companies continued to shed jobs.

The Caixin/Markit services Purchasing Managers’ Index (PMI) rose to 58.4, the highest reading since April 2010, from May’s 55.0, pulling further away from the trough hit in February as the coronavirus lockdown paralysed the economy.

US adds 4.8 million jobs as unemployment falls to 11.1%

US employers added a substantial 4.8 million jobs in June, and the unemployment rate fell to 11.1 percent, as the job market improved for a second straight month yet still remained far short of regaining the colossal losses it suffered this spring.

The re-closings are keeping layoffs elevated: The number of Americans who sought unemployment benefits barely fell last week to 1.47 million. Though that weekly figure has declined steadily since peaking in late March, it’s still more than double the pre-pandemic peak set in 1982. And the total number of people receiving jobless aid remains at a sizable 19 million.

Bank credit grows 6.18%, deposits 11% in fortnight ended June 19

Bank credit and deposits grew 6.18 percent and 11 percent to Rs 102.45 lakh crore and Rs 138.67 lakh crore, respectively, in the fortnight ended June 19, according to the RBI. In the fortnight ended June 21, 2019, bank credit had stood at Rs 96.48 lakh crore and deposits at Rs 124.92 lakh crore.

India's trade deficit with China reduces to $48.66 billion in FY20

India's trade deficit with China fell to $48.66 billion in 2019-20 on account of decline in imports from the neighbouring country, according to government data. Exports to China in the last financial year stood at $65.26 billion, while imports aggregated at $16.6 billion, the data showed. Exports to China in the last financial year stood at $65.26 billion, while imports aggregated at $16.6 billion, the data showed.

India's GDP may contract by 6.4% in FY21: Care Ratings

Due to the COVID-19 induced lockdown, Care Ratings on July 2 revised India's GDP growth forecast for the current financial year to (-) 6.4 percent as economic activity continues to be under restriction. The rating agency, in May, had projected a decline in GDP growth of 1.5-1.6 percent in FY21.

It said given that the nation is into a lockdown for July too with several restrictions on resumption of services in particular as well as movement of people, the cutoff date for normalcy will spread into the latter part of the third quarter and more likely to the fourth quarter. "Under these assumptions our forecast for GDP growth is now (-) 6.4 percent for FY21 with GVA (de)growth estimated to be around (-) 6.1 percent,” Care Ratings said in a report.

Emami threatens legal action against HUL decision to rename Fair & Lovely for men

Emami, the maker of the ‘Fair and Handsome’ brand of men’s grooming products, hit out at competitor HUL for the latter's decision to rebrand Fair and Lovely fairness cream for men as 'Glow and Handsome' because of the sheer similarity in names.

Earlier today, Hindustan Unilever announced its decision to rename its flagship skin care brand 'Fair and Lovely' as 'Glow and Lovely', with the men's range being rechristened to 'Glow and Handsome'. The decision, announced on July 2, was in response to a global backlash against racial prejudice.

In a strongly-worded statement, Emami said, “Although shocked, we are not surprised to note HUL’s unfair business practice, which has been prevalent time and again to damage our brand image.”

RBI asks banks to reclassify MSMEs as per revised criteria

The RBI has asked banks, financial institutions and NBFCs to reclassify micro, small and medium enterprises on the basis of the new criteria.

"We advise you to initiate necessary action for reclassification of enterprises as per the new definition w.e.f July 1, 2020 and issue necessary instructions to your branches/controlling offices in this regard, at the earliest,” RBI said in a communication to banks, financial institutions and non banking financial companies (NBFCs).

Results on July 3

Indiabulls Housing Finance, DCM Financial Services, Duroply Industries, Dhunseri Ventures, Dynamatic Technologies, Gati, India Gelatine & Chemicals, Indo-Global Enterprises, Indian Wood Products Company, Kama Holdings, Shiva Global Agro Industries and Shiva Granito Export.

FII and DII data

Foreign institutional investors (FIIs) sold shares worth Rs 556.72 crore, while domestic institutional investors (DIIs) bought shares worth Rs 908.64 crore in the Indian equity market on July 2, provisional data available on the NSE showed.

3 stocks under F&O ban on NSE

Glenmark Pharmaceuticals, Vodafone Idea and SAIL are under the F&O ban for July 3. 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 Jul 3, 2020 07:42 am
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