What changed for the market while you were sleeping? INA000003197
The Nifty is likely to open flat on Tuesday, tracking muted handover from Wall Street. The index closed 21 points higher on Monday to close at 9,675, a fresh record closing high.
It made a small bullish candle on the daily candlestick chart which is a positive sign for the bulls; however, some of the technical indicators are showing loss of momentum.ina0000003197
Hence, traders are advised to continue with their long positions and avoid adding fresh positions till Nifty breaks above 9,700 convincingly while a close below 9,633 could put bears in charge of D-Street, they say.
Stay tuned with Bonaz Capital 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 closes flat
The US market slipped on Monday weighed down by fall in Apple; however, gains in financial and energy shares cut losses.
Energy stocks rose despite a decline in crude prices while financials gained on expectations of a steepening yield curve environment, in which bonds with longer maturities need higher rates to attract investors, said a report.
The Dow Jones Industrial Average fell 22.25 points, or 0.1 percent, to 21,184.04, the S&P 500 lost 2.97 points, or 0.12 percent, to 2,436.1 and the Nasdaq Composite dropped 10.11 points, or 0.16 percent, to 6,295.68.
The Nifty futures on the Singapore Stock Exchange were trading 7 points lower at 9,687 indicating a flat opening for the domestic market.
India Grid Trust to list on bourses today
India Grid Trust, an infrastructure investment trust established to own inter-state power transmission assets, will list its equity shares on exchanges on June 6.
The Rs 2,250 crore IPO, second in the infrastructure investment trusts space, was oversubscribed 1.17 times.
US economic data points to moderate economic growth
US services sector activity slowed in May as new orders tumbled, but a jump in employment to a near two-year high pointed to sustained labor market strength despite a deceleration in job growth last month, said a Reuters report.
The Commerce Department said factory goods orders dropped 0.2 percent in April after jumping 1.0 percent in March. Orders rose 4.4 percent from a year ago. Services industries reported a 5.5 percentage points dive in new orders last month.
Oil falls 1 percent on fears Mideast rift
Oil fell nearly 1 percent on concerns that Saudi Arabia might cut off ties with Qatar over its alleged support of extremist views inside Islam, said a report.
The news initially pushed Brent crude prices up as much as 1.6 percent, but August Brent prices ended the session 48 cents or 0.96 percent lower at $49.47 a barrel.
“Brent futures have fallen more than 8 percent from their open on May 25, when OPEC opted to extend production cuts into 2018,” it said.
India may face heavy shortage of medicines from mid-June
The country could be staring at an acute shortage of medicines in the second half of June if the government or manufacturers don’t look into potential losses faced by pharmacists from GST’s rollout on July 1.
Pharmacy retailers and stockists have warned companies that a mismatch between tax payouts and tax refunds arising from GST rollout would force them to destock.
7 states yet to pass GST laws
With less than a month left for GST rollout, seven states, including West Bengal, Tamil Nadu and Jammu & Kashmir, are yet to pass their legislations required for implementing the new indirect tax regime, highlighted a report.
So far, 24 states and Union Territories, including Delhi, Odisha and Puducherry, have passed the State Goods and Services Tax (SGST) Act in their respective legislative assemblies.
Rupee scales near 3-week high of 64.36
Rallying for the fourth straight session, the rupee today strengthened by 8 paise to close at a near three-week high of 64.36 a dollar on steady selling of the American currency by state-owned banks and exporters.
The rupees previous best was seen on May 17, when it had closed at 64.15.
Govt considering to further relax FDI in defence
The government is considering to further relax foreign direct investment norms in the defence sector with a view to attracting more overseas inflows, said a PTI report quoting sources.
Industry experts have stated that foreign investors seek assured orders before setting up a manufacturing unit in any country.
Currently, FDI up to 49 per cent is permitted in the sector through automatic route and beyond that up to 100 percent via government nod is permitted.
7 stocks under ban period on NSE
Security in ban period for the next trade date under the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.
Securities which are banned for trading today include names like DLF, GMR Infrastructure, Indiabulls Real Estate, Infibeam, Jaiprakash Associates, Reliance Communications, and Reliance Capital.