What changed for the market while you were sleeping? Top 10 things to know

The Indian stock market is expected to open on a positive note following US and Asian markets as signs of an economic recovery from lockdowns supported investor confidence. SGX Nifty also indicates a positive opening with 61 points gain.

Sensex ended 284 points higher at 34,109.54 while Nifty closed 82 points up at 10,061.55 on June 3. The BSE Midcap and Smallcap indices closed 0.31 percent and 1.24 percent higher, respectively.

According to pivot charts, the key support level for Nifty is placed at 10,005.93, followed by 9,950.37. If the index moves up, key resistance levels to watch out for are 10,146.63 and 10,231.77.

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 rallied broadly on Wednesday with the Nasdaq approaching record highs as signs of an economic recovery from mandated shutdowns helped investors look beyond US social unrest and pandemic worries.

The Dow Jones Industrial Average rose 527.24 points, or 2.05%, to 26,269.89, the S&P 500 gained 42.05 points, or 1.36%, to 3,122.87 and the Nasdaq Composite added 74.54 points, or 0.78%, to 9,682.91.

Asian Markets

Stronger appetite for riskier assets is set to lift Asian equities on Thursday, as government stimulus expectations support investor confidence in an economic recovery from the coronavirus. E-mini futures for the S&P 500 were up 0.05% and Australian vS&P/ASX 200 futures rose 1.23% in early trading. Japan's Nikkei futures rose 1.1%.

SGX Nifty

Trends on SGX Nifty indicate a positive opening for the index in India with a 61 points gain. The Nifty futures were trading at 10,151 on the Singaporean Exchange around 07:30 hours IST.

Not prudent to go for forced waiver of interest, risking financial viability of banks: RBI to SC

The Reserve Bank of India has told the Supreme Court that it is taking all possible measures to provide relief with regard to debt repayments on account of the fallout of COVID-19 but it does not consider it prudent to go for a “forced waiver of interest, risking the financial viability of the banks it is mandated to regulate, and putting the interests of the depositors in jeopardy”. In its reply, to a plea challenging levy of interest on loans during the moratorium period which has been extended by another three months till August 31 due to the coronavirus pandemic, the RBI said that regulatory package is, in its essence, in the nature of a moratorium/deferment and “cannot be construed to be a waiver”.

“While the Reserve Bank is taking all possible measures to provide relief to the real sector with regard to debt repayments on account of the fallout of Covid-19, it does not consider it prudent or appropriate to go for a forced waiver of interest, risking the financial viability of the banks it is mandated to regulate, and putting the interests of the depositors in jeopardy,” the Reserve Bank said in its affidavit.

Oil moves higher, hovers below $40

Oil ended slightly higher on Wednesday but remained below the session’s early highs above $40 a barrel, the highest since March, retreating as doubts emerged about the timing and scale of a potential extension to the pact between OPEC and its allies to cut crude supplies.

Brent crude futures for August settled up 22 cents, or 0.6%, at $39.79 a barrel. The session high of $40.53 was the highest since March 6. West Texas Intermediate (WTI) crude for July rose 48 cents, to $37.29 a barrel.

Centre starts discussions on privatisation of public sector banks: Report

The Centre has started work on the privatisation of public sector banks (PSBs) in line with the disinvestment plans announced by Finance Minister Nirmala Sitharaman in Budget 2020. A select group of government functionaries has started discussions on a proposal based on suggestions from the NITI Aayog, sources told The Economic Times. The move aims to hinder a “culture of bailouts by the taxpayer,” it said.

While discussions on de-nationalisation are on, no decision has been made yet, sources said, adding: “The discussions have to get more intense as the Bank Nationalisation Act has to be amended before going ahead with the next step.”

Railway freight earnings dip by Rs 8,283 crore during coronavirus lockdown: Data

Railways freight earnings dropped by Rs 8,283 crore during the lockdown months of April and May as compared to the same period last year, the data showed on Wednesday, indicating a slow year ahead for the national transporter amidst the gloom of the coronavirus crisis. While it almost doubled its foodgrain loading from 5.7MT between April 1 and May 31 last year to 11.09 MT this year, registering a Rs 607 crore increase from last year's earnings, it suffered a setback in revenue generation from all other products it carried.

Its earnings from coal loading fell from Rs 11,033 crore in 2019 to Rs 5,720 crore in 2020. Revenue generation from transporting mineral oil fell to Rs 761 crore this year from Rs 979 crore last year, the data showed.

Only 5% Asia Pacific infra firms highly exposed to COVID-19 disruptions: Moody's

Barely 5 percent of the rated project and infrastructure companies in Asia Pacific have high exposure to coronavirus disruptions, Moody's Investor Service said on Wednesday. Pressure has eased for Chinese toll roads, while a small number of utilities face moderate exposure, it said.

A high proportion (67 percent) of rated project and infrastructure companies in Asia Pacific continue to have low exposure to the coronavirus-related disruptions, supported by their essential nature and predictable cashflows, Moody's Investors Service said in a statement.

“The number of companies with high exposure has reduced in recent months, particulary the Chinese toll road sector following the end of the toll-free period and with recovering traffic volumes,” said Arnon Musiker, senior vice president and manager at Moody's.

RIL rights issue subscribed 1.59 times, amasses subscription of over Rs 84,000 crore

RIL's mega rights issue of Rs 53,124.20 crore has received an overwhelming response from investors as it was subscribed 1.59 times on June 3, the last day of subscription. "The rights issue saw a huge investor interest, including from lakhs of small investors and thousands of institutional investors, both Indian and foreign. The public portion of the rights issue was subscribed 1.22 times," the oil-telecom-to-retail major said in a release.

Reliance Industries today announced that it has achieved successful closure of India's largest ever rights issue which was subscribed approximately 1.59 times, cumulating to an overall commitment of over Rs 84,000 crore.

Uday Kotak takes over from Vikram Kirloskar as the new CII President

The Confederation of Indian Industry (CII) on Wednesday announced new office-bearers for the year 2020-21. Uday Kotak was elected as CII President and Sanjiv Bajaj assumed office as the Vice-President. Managing Director and CEO of Kotak Mahindra Bank, Uday Kotak, has taken over as the President of CII for 2020-21 from Vikram Kirloskar, Chairman and Managing Director of Kirloskar Systems, CII said in a press release.

Results on June 4

DLF, PI Industries, NIIT, PNB Gilts, SRF, Chemfab Alkalis, Cosmo Films, Filatex India, Igarashi Motors India, IL&FS Transportation Networks, LKP Securities, Safari Industries, TD Power Systems, Tourism Finance Corporation.

FII and DII data

Foreign institutional investors (FIIs) bought shares worth Rs 1,851.12 crore, while domestic institutional investors (DIIs) sold shares worth Rs 781.79 crore in the Indian equity market on June 3, provisional data available on the NSE showed.

With inputs from Reuters & other agencies