Trends on SGX Nifty indicate a positive opening for the index in India with a 15 points gain.
Indian stock market is expected to open on a flat to positive note after mixed global cues. SGX Nifty indicates a 15 points gain. Nifty futures were trading at 10,039 on the Singaporean Exchange.
After six consecutive days of gains, the Indian market witnessed profit booking with both the Sensex and Nifty closing in the red on June 4. The Sensex closed down 129 points, or 0.38 percent, at 33,980.70 and the Nifty settled 32 points, or 0.32 percent, lower at 10,029.10.
According to pivot charts, the key support level on the Nifty is placed at 9,940.97, followed by 9,852.83. If the index moves up, key resistance levels to watch out for are 10,120.52 and 10,211.93.
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
The S&P 500 lost ground on Thursday as investors took profits in advance of Friday's jobs report, ending a four-day rally driven by rising economic sentiment. The Nasdaq joined the S&P 500 in negative territory, while the blue-chip Dow posted a nominal gain.
The Dow Jones Industrial Average rose 11.93 points, or 0.05%, to 26,281.82, the S&P 500 lost 10.52 points, or 0.34%, to 3,112.35 and the Nasdaq Composite dropped 67.10 points, or 0.69%, to 9,615.81.
Asian Markets
Asian stocks were set to hold tight ranges on Friday after a mixed Wall Street session and as investors awaited key U.S. jobs data while sustained hopes about a global economic recovery kept pressure on the safe-haven dollar.
Australian S&P/ASX 200 futures lost 0.2% in early trading while Japan's Nikkei 225 futures slipped 0.4%. Hong Kong's Hang Seng index futures lost 0.55%.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the index in India with a 15 points gain. The Nifty futures were trading at 10,039 on the Singaporean Exchange around 07:30 hours IST.
Oil dips on uncertainty over producers' commitment to output cuts
Oil prices eased slightly on Friday as markets wait to see whether major producers will commit to an extension of record production cuts to support oil prices.
Brent crude futures were down 8 cents, or 0.2%, at $39.91 a barrel as of 0106 GMT and U.S. West Texas Intermediate (WTI) crude futures fell 15 cents, or 0.4%, to $37.26 a barrel.
US trade deficit widens as exports hit 10-year low
The US trade deficit surged in April as the COVID-19 pandemic upended the global flow of goods and services, pushing exports to a 10-year low. The Commerce Department said on Thursday the trade deficit jumped 16.7 percent to $49.4 billion. Economists polled by Reuters had forecast the trade gap increasing to $49.0 billion in April.
In April, exports dropped a record 20.5 percent to $151.3 billion, the lowest since April 2010. Goods exports plunged 25.2 percent to $95.5 billion, the lowest since September 2009. Exports of motor vehicles and parts fell to $3.8 billion, the lowest since March 1992. Shipments of consumer goods dropped to $10.4 billion, the lowest since April 2006.
SEBI extends regulatory filing deadline for AIF, VCF in wake of COVID-19
With an aim to reduce the compliance burden on venture capital funds and alternative investment funds, markets regulator Sebi on Thursday extended the due date for regulatory filings till August 7. Sebi had earlier extended the due date for regulatory filings for alternative investment funds (AIFs) and venture capital funds (VCFs) for the periods ended March 31 and April 30 by two months, over and above the timelines prescribed under Sebi (Alternative Investment Funds) Regulations.
"Accordingly, AIFs and VCFs may submit the regulatory filings for the months ending March, April, May and June 2020, as applicable, on or before August 7, 2020," the Securities and Exchange Board of India (Sebi) said.
Bank NPAs may worsen to 11.6% by end of this fiscal due to coronavirus pandemic: ICRA
Gross non-performing assets (NPAs) of banks are likely to worsen to 11.3-11.6 percent by the end of this financial year from 8.6 percent as of March 2020, due to disruptions caused by the coronavirus pandemic, according to a report. Fresh gross slippages are estimated to be at 5-5.5 percent of standard advances during 2020-21, which will increase the banks' credit provision and impact their earnings, rating agency ICRA said in a report.
"The RBI moratorium to borrowers was extended by another three months till August 31, 2020, and we expect the asset quality stress is likely to reflect only in third and fourth quarters of 2020-21 results," the rating agency's sector head (financial sector ratings) Anil Gupta said.
European Central Bank nearly doubles coronavirus pandemic support scheme
The European Central Bank has boosted its pandemic emergency support program by an unexpectedly large 600 billion euros to 1.35 trillion euros ($1.5 trillion) in an effort to keep affordable credit flowing to the economy during the steep downturn caused by the virus outbreak.
The central bank for the 19 countries that use the euro also extended its monetary stimulus program to at least the end of June next year, from the end of 2020 currently. Under the pandemic support program, the ECB buys corporate and government bonds and other financial assets from banks, paying with newly created money. That helps lower longer-term interest rates, keeping the pandemic from drying up needed funding for borrowers.
SEBI rejigs commodity derivatives advisory committee
Markets regulator Sebi has re-constituted its commodity derivatives advisory committee that examines issues related to contract designs and new products in the segment and advises on matters related to delivery mechanism and warehouses. The other members of the panel include BSE MD and CEO Ashish Chauhan, and NSE MD and CEO Vikram Limaye. In addition, chiefs of MCX, ICEX and NCDEX are also members of the committee.
In addition, the panel will examine issues related to contract designs and new products in commodity derivatives and to advise on matters related to delivery mechanism and warehouses.
Agriculture sector likely to remain resilient from COVID-19 impact; to grow 2.5% in FY21: CRISIL
Even as coronavirus pandemic has impacted many sectors, the agriculture could be the only bright spot as real agriculture is likely to witness a 2.5 percent growth in 2020-21, according to a report. The report by CRISIL Research however listed risks such as any likely impact of locust attacks and impact of lockdown on horticulture produce.
A fall in exports in these commodities too is expected to hem in demand, but with the contribution of these items in the agriculture and allied activities sector being relatively lower, the overall agricultural growth may stay resilient, it added.
Results on June 5
State Bank of India, Larsen & Toubro, Exide Industries, Alkem Laboratories, Gateway Distriparks, Greaves Cotton, Gujarat Gas, HFCL, Infibeam Avenues, Jyothy Laboratories and Suven Life Sciences.
FII and DII data
Foreign institutional investors (FIIs) bought shares worth Rs 2,905.04 crore, while domestic institutional investors (DIIs) sold shares worth Rs 847.31 crore in the Indian equity market on June 4, provisional data available on the NSE showed.
With inputs from Reuters & other agencies
