Trends on SGX Nifty indicate a flat opening for the index in India with a 8 points gain.
Indian markets are expected to open flat with signs of US economic recovery while Asian stocks were set to come under pressure following a dip in Wall Street futures as US President Donald Trump vowed to use force to end violent protests in American cities.
The Sensex ended 879 points, or 2.71 percent, higher at 33,303.52 on June 1. The Nifty closed up 246 points, or 2.57 percent, at 9,826.15. The BSE Midcap and Smallcap indices closed 2.65 percent and 3.03 percent higher, respectively.
According to pivot charts, the key support level for Nifty is placed at 9,711.54, followed by 9,596.92. If the index moves up, key resistance levels to watch out for are 9,936.18 and 10,046.22.
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
US stocks posted gains on Monday as signs of US economic recovery helped offset jitters over increasingly violent social unrest amid an ongoing pandemic and rising US-China tensions.
The Dow Jones Industrial Average rose 91.91 points, or 0.36%, to 25,475.02, the S&P 500 gained 11.42 points, or 0.38%, to 3,055.73 and the Nasdaq Composite added 62.18 points, or 0.66%, to 9,552.05.
Asian Markets
Asian stocks were set to come under pressure on Tuesday following a dip in Wall Street futures as U.S. President Donald Trump vowed to use force to end violent protests in American cities, souring a previously upbeat market mood.
Japan’s Nikkei 225 futures lost 0.34%. Australian S&P/ASX 200 futures rose 0.15% in early trading.
SGX Nifty
Trends on SGX Nifty indicate a flat opening for the index in India with a 8 points gain. The Nifty futures were trading at 9,842 on the Singaporean Exchange around 07:30 hours IST.
Moody's downgrades India's rating to BAA3, maintains negative outlook
Moody's Investors Service on June 1 downgraded India's rating to BAA3 and maintained the negative outlook. "Moody's has adowngraded India's local-currency senior unsecured rating to Baa3 from Baa2, and its short-term local-currency rating to P-3 from P-2. The outlook remains negative.The decision to downgrade India's ratings reflects Moody's view that the country's policymaking institutions will be challenged in enacting and implementing policies which effectively mitigate the risks of a sustained period," it said in a statement.
"While today's action is taken in the context of the coronavirus pandemic, it was not driven by the impact of the pandemic. Rather, the pandemic amplifies vulnerabilities in India's credit profile that were present and building prior to the shock, and which motivated the assignment of a negative outlook last year," it said.
Oil prices hold ground ahead of OPEC+ meeting on extended output cuts
Oil prices rose in early trade on Tuesday, with traders waiting to see whether major crude producers agree to extend their huge output cuts to shore up prices at a meeting expected later this week.
Brent crude futures rose 0.3%, or 12 cents, to $38.44 a barrel as of 0011 GMT. U.S. West Texas Intermediate (WTI) crude futures traded in a 38 cent range on either side of Monday’s close, and last traded up 0.3%, or 9 cents, at $35.53 a barrel.
Union Cabinet clears new definition of MSMEs, limit raised to Rs 250 crore
The Union Cabinet at its meeting on June 1 has approved changes to the definition of micro, small and medium Enterprises (MSMEs). Raising the turnover limit for medium enterprises to Rs 250 crore, the government aims to broaden the scope of MSMEs.
Union Minister Prakash Javadekar said the new definition of MSMEs would benefit units. Enterprises with Rs 1 crore investment and Rs 5 crore turnover would now qualify as micro enterprises. Businesses with an investment of less than Rs 10 crore and turnover less than Rs. 50 crore will now be classified as small enterprises.
Retail credit drops to record low during COVID-19 lockdown: SBI economists
The COVID-19 pandemic and the lockdown have made Indian consumers risk-averse if one were to go by data showing a growth in deposits and retail credit plummeting to its lowest level since 2008, economists at SBI said. On the deposit growth front, it has been a mixed bag, but the extension of the lockdown for a fifth time will ensure that the savings continue to surge, the economists said in a note.
Retail credit declined by 2.5 percent, the lowest level since 2008, from when the data series started, it said, expecting that the decline will continue as Maharashtra has extended the lockdown till June 30. The increase in cash credit during the fourth lockdown is more than Rs 52,000 crore, the economists said, pointing out that this can be because of accrued interests in moratorium turning into loans.
Cabinet approves MSP for 14 kharif crops; farmers to get 50-83% more than cost
The Union Cabinet on June 1 approved minimum support price for 14 kharif crops. The revised prices will provide farmers nearly 50-83 percent more than the cost, Union Agriculture Minister Narendra Singh Tomar said in a cabinet briefing.
The MSP for paddy has been raised by Rs 53 to Rs 1,868 per quintal for the 2020-21 crop year, Tomar said, adding for Jowar MSP is at Rs 2,620 per quintal and Bajra at Rs 2,150 per quintal. Among other produce, the MSP for Cotton has been increased by 50 percent or Rs 260 to Rs 5,515 per quintal, he said.
Results on June 2
Britannia Industries, InterGlobe Aviation, Spandana Sphoorty Financial, Sun Pharma Advanced Research Company, Motherson Sumi Systems, Dhampur Sugar Mills, Dolat Investments, Granules India, Marksans Pharma, Transport Corporation of India, Tata Teleservices, Vishnu Chemicals and Zydus Wellness.
FII and DII data
Foreign institutional investors (FIIs) bought shares worth Rs 1,575.46 crore, while domestic institutional investors (DIIs) sold shares worth Rs 459.25 crore in the Indian equity market on June 1, provisional data available on the NSE showed.
With inputs from Reuters & other agencies
