A few cues from the market in India and abroad that could help you with your trade today.
The market started off July series on a subdued note on Friday, though gained half a percent for the week ended June 28 and snapped three-week losing streak, indicating caution ahead of important event -- Union Budget that scheduled to be released on July 5.
On coming Monday, first the market may react to decision by US President Donald Trump and Chinese President Xi Jinping in G20 Summit held in Japan that both sides would continue negotiations for trade tariffs and will not levy any new tariffs against each other's products for the time being.
The broader markets outperformed frontliners as the BSE Midcap and Smallcap indices gained more than a percent each in passing week. All sectoral indices closed in green barring IT that fell 1.5 percent.
According to the Pivot charts, the key support level is placed at 11,752.3, followed by 11,715.8. If the index starts moving upward, the key resistance levels to watch out are 11,848.5 and 11,908.2.
The Nifty Bank closed at 31,105.20, down 164.30 points on June 28. The important Pivot level, which will act as a crucial support for the index, is placed at 31,007.57, followed by 30,909.93. On the upside, key resistance levels are placed at 31,255.87, followed by 31,406.54.
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 wraps up its best June in decades as G20 convenes
Wall Street advanced in heavy trading on Friday, with the S&P 500 and the Dow closing the book on their best June in generations, ahead of much-anticipated trade talks between US President Donald Trump and Chinese counterpart Xi Jinping at the G20 summit now underway in Japan. All three major US stock indexes gained ground at the close of the week, month, quarter and first half of the year, during which time the US stock market has had a remarkable run.
The Dow Jones Industrial Average rose 73.38 points, or 0.28 percent, to 26,599.96, the S&P 500 gained 16.84 points, or 0.58 percent, to 2,941.76 and the Nasdaq Composite added 38.49 points, or 0.48 percent, to 8,006.24.
Asia stocks cheer trade truce, bonds retreat
Stocks rallied and bonds retreated in Asia on Monday as a thaw in the Sino-US trade dispute tempered risks to the global economy, leading investors to pare wagers on aggressive policy easing by the major central banks. The dollar gained on the safe-haven yen as Treasury yields jumped and futures reined in bets for a half-point rate cut from the US Federal Reserve this month.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.3 percent. E-Mini futures for the S&P 500 rose 0.9 percent.
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 9.5 points or 0.08 percent. Nifty futures were trading around 11,847-level on the Singaporean Exchange.
Oil jumps on Saudi, Russia support for supply cuts
Oil prices rose more than USD 1 a barrel on Monday after Saudi Arabia, Russia, Iraq backed an extension of supply cuts for another six to nine months ahead of an OPEC meeting this week.
Front-month Brent crude futures for September touched an intraday high of USD 66.14 a barrel and were up USD 1.12, or 1.7 percent, at USD 65.86 a barrel by 1252 GMT. US crude futures for August rose USD 1.10, or 1.9 percent, to USD 59.57 a barrel after earlier hitting a peak of USD 60.10, the highest in over five weeks.
Rupee settles marginally higher at 69.03 against US dollar
The Indian Rupee June 28 notched a marginal 4 paise gain at 69.03 as forex market keenly awaited further cues from the high-stakes G20 summit. On a weekly basis, the Indian currency has gained 55 paise.
At the interbank foreign exchange, the domestic unit opened at 69.00 and swung between the day's high of 68.88 and low of 69.11 to the US dollar. It finally settled at 69.03 a dollar, registering a rise of 4 paise.
Fiscal deficit touches 52% of full year target in first 2-months
The government's fiscal deficit touched 52 percent of the budget estimate for the full year in the first two months of 2019-20. In absolute terms, the fiscal deficit or gap between expenditure and revenue, was Rs 3,66,157 crore, as per the data released by the Controller General of Accounts (CGA).The fiscal deficit was 55.3 percent of 2018-19 budget estimate in the year-ago period. In the Interim Budget passed in February, the government had
estimated the fiscal deficit at Rs 7.03 lakh crore for 2019-20. The government aims to restrict the fiscal deficit at 3.4 per cent of the GDP during the current fiscal, same as the last financial year.
FPIs remain net buyers for 5th month in a row, pump Rs 10,384 cr in June
Foreign investors infused a net amount of Rs 10,384 crore into the Indian capital markets in June and remained net buyers for the fifth month in a row on expectations of continued economic reforms.
Foreign portfolio investors (FPI) invested a net of Rs 2,272.74 crore in equities and Rs 8,111.80 crore in the debt segment, taking the total net investment to Rs 10,384.54 crore in June, according to the depositories' data.
RBI relaxes leverage ratio for banks to boost their lending capacity
The Reserve Bank June 28 relaxed the leverage ratio (LR) for banks to help them boost their lending activities. The leverage ratio stands reduced to 4 percent for Domestic Systemically Important Banks (DSIBs) and 3.5 percent for other banks effective from the quarter commencing October 1, 2019, the central bank said in a notification.
"Both the capital measure and the exposure measure along with Leverage Ratio are to be disclosed on a quarter-end basis. However, banks must meet the minimum Leverage Ratio requirement at all times," RBI said.
The leverage ratio, as defined under Basel-III norms, is Tier-I capital as a percentage of the bank's exposures. The framework is designed to capture leverage associated with both on- and off-balance sheet exposures.
India Inc's foreign borrowing jumps to $3.55 bn in May
India Inc's foreign borrowings jumped more than two-and-half times to USD 3.55 billion (about Rs 24,500 crore) in May 2019 from a year ago, data from Reserve Bank showed June 28. Indian companies had raised over USD 1.35 billion from overseas markets in May 2018. Of the total borrowings during May this year, USD 2.83 billion came through automatic route of external commercial borrowings (ECBs), while USD 653.04 million was raised via approval route.
ECL Finance Limited (USD 500 million), Delhi International Airport (USD 500 million), Indiabulls Housing Finance (USD 350 million), Tata Capital Financial Services (USD 250 million) and Cholamandalam Investment And Finance Company (USD 180 million) were among the major borrowers who tapped automatic route of ECB.
Foreign fund inflows, weaker dollar push India’s forex reserves to record high
Foreign fund inflows and weakening US dollar have led to a rise in India’s foreign exchange reserves that touched a record high of USD 426.42 billion in the week ended June 21. Data released by the Reserve Bank of India (RBI) showed the country’s foreign exchange reserves grew by USD 4.22 billion from USD 422.20 billion in the previous week. The reserves had last touched record of USD 426.08 billion on April 13, 2018.
Earlier this week, US President Donald Trump said he wants a weaker dollar to help boost exports after comments from ECB led to a fall in the Euro against the dollar. The dollar index, which measures the value of the greenback against a basket of six world currencies, fell by 2 percent in the past month.
RBI tweaks conditions for sale of asset by an ARC to another
The Reserve Bank of India on June 28 permitted Asset Reconstruction Companies (ARCs) to acquire financial assets from each other on meeting certain conditions, in light of changes made in the Sarfaesi Act. The decision will help improve liquidity in the ARC market.
"In view of amendment to the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (Sarfaesi) Act, 2002, it has been decided to permit ARCs to acquire financial asset from other ARCs," RBI said in a notification. However, the transfer of assets by one ARC to another would depend on certain conditions.
China's factory activity shrinks as US tariffs, slowdown hit orders
China’s factory activity shrank more than expected in June, an official manufacturing survey showed, highlighting the need for more economic stimulus as US tariffs and weaker domestic demand ramped up pressure on new orders for goods.
The Purchasing Managers’ Index (PMI) stood at 49.4 in June, China’s National Bureau of Statistics said on Sunday, unchanged from the previous month and below the 50-point mark that separates growth from contraction on a monthly basis. Analysts polled by Reuters predicted a reading of 49.5.
BSE launches commodity derivative trading in turmeric
Leading stock exchange BSE June 28 commenced commodity derivatives trading in turmeric with a lot size of 10 metric tonne. Launch of trading in turmeric contracts is in line with our long-term vision to introduce various agri/non-Agri commodities contracts on BSE platform," BSE Managing Director and CEO Ashishkumar Chauhan said in a statement.
The launch of turmeric futures was done in Sangli, the turmeric city of Maharashtra, it added. "We believe there is a lot of scope for growth in the commodities market and look forward to launching more agri commodities and providing effective risk hedging instruments using the latest technology and risk management framework to all Indian stakeholders," Chauhan said.
US President Donald Trump says is 'in no hurry' for a deal with China
US President Donald Trump said on Saturday that while his meeting with China’s President Xi Jinping was far better than expected, he was “in no hurry” to cut a trade deal. Trump also said he would not increase existing tariffs to China.
“I am in no hurry, but things look very good,” Trump wrote in a post on Twitter, referring to ongoing talks between Washington and Beijing. “The quality of the transaction is far more important to me than speed.”
India Inc sees private equity deals worth $1.14 bn in May: Report
Private equity (PE) investments saw a marginal fall of 4 percent in the country to USD 1.14 billion in May in terms of deal value, according to a report by Grant Thornton. There were 48 PE deals worth USD 1.138 billion in May, while in the corresponding month of last year, there were 53 such transactions worth USD 1.18 billion, said the report.
"Despite witnessing a fall of 87 percent in M&A (merger and acquisition) deal values and 27 percent drop in M&A deal volumes, PE deals remained on par with the activity recorded in May 2018," it added.
One stock under F&O ban period on NSEFor July 1, DHFL is 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 agencies