What changed for the market while you were sleeping? Bonaz Capital
The Nifty is likely to open lower on Wednesday after a weak handover from Wall Street. The Nifty closed 4 points lower at 9,653 on Tuesday.
The index managed to close above its crucial support level of 9,650 and made a small-bodied candle on the daily candlestick charts. To gain momentum, the index has to surpass its crucial resistance level of 9,700-9,709.
The index has to continue to hold above 9,620 to witness an up move towards its lifetime high of 9,709 and 9,750 while on the downside supports are seen at 9,580 and 9,550.
Stay tuned with Bonazcapital 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 ends lower
US stocks ended lower on Tuesday amid a sharp drop in oil prices hurt energy stocks and retail stocks were pulled down by concerns about Amazon.com’s plan to boost its apparel business.
Oil prices fell about 2 percent after news of increases in supply by several key producers, a trend that has undermined attempts by OPEC and other producers to support the market through reduced output, said a Reuters report.
The Dow Jones Industrial Average was down 61.85 points, or 0.29 percent, to 21,467.14, the S&P 500 had lost 16.43 points, or 0.67 percent, to 2,437.03 and the Nasdaq Composite had dropped 50.98 points, or 0.82 percent, to 6,188.03.
The Nifty50 futures on the Singapore Stock Exchange were trading 44 points lower at 9,629 indicating a negative opening for the domestic market.
US crude ends at nine-month lows
Oil fell about 2 percent on Tuesday, with Brent settling at seven-month lows and US crude at its cheapest level since September, after increased supply from several key producers overshadowed high compliance by OPEC and non-OPEC oil producers with a deal to cut global output, said a Reuters report.
Brent ended lower at USD 46.02 a barrel, its lowest settlement since November 15. The US crude futures contract for July, due to expire later on Tuesday, settled down 97 cents at USD 43.23, the lowest since Sept. 16.
Dollar rises to one-month high
The dollar hit a one-month high on Tuesday against a basket of currencies following comments from New York Fed President William Dudley who said that the door is open for the possibility of another rate hike by year-end.
The US central bank as expected raised key overnight borrowing costs by a quarter-point to 1.00-1.25 percent last Wednesday.
The index that tracks the greenback versus six currencies was up 0.3 percent at 97.800 after touching 97.871 earlier Tuesday, which was the highest since May 18. The euro fell to a three-week low of $1.1117, while the dollar reached 111.86 yen, the highest since May 26, Reuters data showed.
MSCI to add mainland China shares
US index provider MSCI said on Tuesday that it will add mainland Chinese stocks to one of its key benchmarks, but shocked many emerging market investors by failing to upgrade Argentina from the frontier market category where it has languished in recent years, said a Reuters report.
MSCI also said it would consult on adding Saudi Arabia to the benchmark and that Nigeria will remain a frontier market, awaiting further review on a possible downgrade to “standalone” status, it said.
The full inclusion of domestic Chinese stocks in the widely tracked MSCI Emerging Markets Index could pull more than $400 billion of funds from asset managers.
Modi to discuss H-1B visa issue with Trump next week
Prime Minister Narendra Modi will take up the issue of visas for skilled workers when he meets US President Donald Trump next week in Washington, a senior government official told Reuters on Tuesday.
Trump has ordered a review of the US visa programme for bringing high-skilled foreign workers into the United States, putting technology firms and the outsourcing companies that serve them on notice of possible changes ahead, the report said.
GTPL Hathway IPO to open on June 21
GTPL Hathway, which offers cable TV and broadband services, today raised more than Rs 145 crore from anchor investors, ahead of its initial public offering that opens on Wednesday.
The initial public offering of GTPL Hathway, a 50:50 joint venture between cable TV operator GTPL and Hathway, will open for subscription on June 21, with a price band of Rs 167-170 per share.
An investor can bid for a minimum of 88 equity shares and in multiples of 88 shares thereafter. The issue will close on June 23.
Rupee closes weaker against US dollar
The Indian rupee on Tuesday closed weaker against the US dollar. It ended at 64.50 a dollar, down 0.12 percent from its Monday’s close of 64.43. The rupee opened at 64.51 a dollar and touched a high and a low of 64.41 and 64.53 respectively.
Monsoon likely to pick up pace from June 23
After a brief lull, the monsoon is expected to pick up the pace later this week and likely to intensify its advancement in central and north India, the weatherman said on Tuesday.
India Meteorological Department (IMD) Director General K J Ramesh said on the western side, the monsoon is hovering around Valsad in south Gujarat and Bengal on the eastern side.
13 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 Allahabad Bank, Bank of India, BEML, HDIL, Infibeam, IFCI, Indiabulls Real Estate, DLF, JP Associates, Kaveri Seed Company, OBC, Wockhardt and Reliance Communication.