Trends on SGX Nifty indicate a gap up opening for the index in India with a 139 points gain.
Indian stock market is expected to open gap up following global cues after a surprise recovery in US employment and with the domestic economy getting back on track. SGX Nifty indicates a gap up opening for Indian indices with 139 points gain. The Nifty futures were trading at 10,164 on the Singaporean Exchange.
Benchmark indices registered a 6 percent jump as bulls continued to dominate for the second consecutive week that ended on June 5. Sensex ended 306 points higher at 34,287 on June 5 while the Nifty50 rallied 113 points to close at 10,142. The Sensex was up 5.7 percent while the Nifty closed with gains of 5.8 percent last week.
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 surged on Friday after a strikingly upbeat May jobs report unexpectedly provided the clearest evidence yet that the US economy is headed for a quicker-than-anticipated recovery. The Nasdaq breached its all-time closing high reached in February but pared its gains to end the session a hair's breadth below it.
The Dow Jones Industrial Average rose 829.16 points, or 3.15%, to 27,110.98, the S&P 500 gained 81.58 points, or 2.62%, to 3,193.93 and the Nasdaq Composite added 198.27 points, or 2.06%, to 9,814.08.
Asian Markets
US stock futures and Asian shares advanced on Monday after a surprise recovery in US employment gave further confidence of a quick economic recovery after many weeks of lockdowns aimed at controlling the coronavirus pandemic.
US S&P500 futures rose 0.5% to stand near their highest levels since late February while Japan’s Nikkei opened more than 1% higher. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3% in early trade, with South Korea’s Kospi rising 1.4%. The Australian share market was closed for a holiday.
SGX Nifty
Trends on SGX Nifty indicate a gap up opening for the index in India with a 139 points gain. The Nifty futures were trading at 10,164 on the Singaporean Exchange around 07:30 hours IST.
Oil climbs over 2% after OPEC+ extends output cuts to end-July
Oil prices rose more than 2% early on Monday to their highest in three months after OPEC and its allies including Russia agreed to extend record oil production cuts until the end of July.
Brent crude climbed to as high as $43.41 a barrel and was trading at $43.32 by 0000 GMT, up $1.02, or 2.4%. US West Texas Intermediate (WTI) crude gained 83 cents, or 2.1%, to $40.38 a barrel. Both hit their highest since March 6.
China exports in May fall 3.3% year-on-year; imports shrink 16.7%
China's exports in May fell a less-than-expected 3.3 percent compared with a year earlier, but imports plunged 16.7 percent, customs data showed on Sunday. Analysts in a Reuters poll had forecast exports would tumble 7 percent from a year earlier after a 3.5 percent gain in April.
Imports were estimated to have contracted 9.7 percent, recovering from a slide of 14.2 percent in April. China posted a trade surplus of USD 62.93 billion last month, compared with the poll's forecast for a USD 39 billion surplus and USD 45.34 billion surplus in April.
FPIs invest Rs 18,589 cr in first week of June as market sentiment improves
Foreign portfolio investors have pumped in a massive Rs 18,589 crore into the Indian markets the first week of June as sentiment improved amid graded lifting of lockdown curbs. During the first five trading sessions of June, overseas investors put in a net sum of Rs 20,814 crore in equities but pulled out a net Rs 2,225 crore from the debt segment. The total net investment between June 1-5 stood at Rs 18,589 crore.
SEBI eases timelines for disposal of physical gold, silver assets held by MFs
Markets regulator SEBI on Friday relaxed the timelines for disposal of physical gold and silver assets held by mutual funds for settlement purposes for investments made through exchange traded commodity derivatives. Underlining that mutual fund schemes cannot invest in physical goods except in gold through gold ETFs, SEBI modified its nearly a year-old directives on disposal timeline for physical goods held by the mutual fund schemes towards physical settlement of exchange traded commodity derivative contracts, in which they might have invested.
In a circular, the Securities and Exchange Board of India (SEBI) said that disposal time is now 180 days for physical gold and silver assets. For other goods, it has to be done by the immediate next expiry day of the contract.
Bank credit grows 6.25%, deposits rise 10.64%: RBI
Bank credit and deposits grew 6.25 percent and 10.64 percent YoY to Rs 102.23 lakh crore and Rs 138.30 lakh crore, respectively, in the fortnight ended May 22, according to the latest data from the Reserve Bank of India. In the fortnight ended May 24, 2019, bank loans had stood at Rs 96.21 lakh crore and deposits at Rs 124.99 lakh crore, the RBI data showed.
On a YoY basis, non-food credit growth decelerated to 7.3 percent in April 2020 from 11.9 percent in the same month last year, the data showed. Loan growth to agriculture and allied activities decelerated to 3.9 percent in April 2020, against 7.9 percent in April 2019.
US unemployment drops unexpectedly to a still-high 13.3%
The US unemployment rate fell unexpectedly in May to 13.3 percent — still on par with what the nation witnessed during the Great Depression — as states loosened their coronavirus lockdowns and businesses began recalling workers. The government said Friday that the economy added 2.5 million jobs last month, driving unemployment down from 14.7 percent in April.
Equity MFs give 25% returns during lockdown amid market recovery
Equity-oriented mutual fund schemes generated returns of about 25 percent during the lockdown period amid a recovery in broader markets and liquidity infusion by the RBI coupled with the government's stimulus measures, experts said. However, some analysts believe this is nothing more than a bear market rally.
According to data compiled by Morningstar India, all the equity scheme categories -- equity linked saving scheme (ELSS), mid-cap, large and mid-cap, large-cap, small-cap, mid-cap and multi-cap -- have given returns in the range of 23-25 percent between March 25 and June 3.
MF schemes can't invest in physical goods except gold: SEBI
Market regulator Sebi on Friday said mutual funds cannot invest in physical goods barring gold through gold exchange traded funds (ETFs). Exchange traded commodity derivatives (ETCDs) having gold as the underlying asset would be considered as 'gold-related instrument' for gold ETFs.
"No mutual fund schemes shall invest in physical goods except in 'gold' through Gold ETFs," the Securities and Exchange Board of India (Sebi) said in a circular.
India's forex reserves surge to all-time high of $493.48 billion
The country's foreign exchange reserves surged $3.43 billion to a fresh all-time high of $493.48 billion for the week ended May 29 on a handsome accretion of the core currency assets, the Reserve Bank of India (RBI) said on Friday. The reserves, which are counted as a key strength as the country faces the economic impact of the COVID-19 pandemic, had risen by $3 billion to an all-time high of $490.044 billion in the previous week.
During the week ended May 29, foreign currency assets, a major component of the overall reserves, increased by $3.50 billion to $455.21 billion, data from the RBI showed.
Results on June 8
Titan Company, Abbott India, Chalet Hotels, Coromandel Engineering Company, Gujarat State Petronet, Inox Leisure, PVR, Themis Medicare, 20 Microns.
FII and DII data
Foreign institutional investors (FIIs) bought shares worth Rs 97.61 crore, while domestic institutional investors (DIIs) sold shares worth Rs 47.29 crore in the Indian equity market on June 5, provisional data available on the NSE showed.
2 stocks under F&O ban on NSE
BHEL and NCC are the stocks under the F&O ban for June 8. Securities in the ban period under the F&O segment include companies in which the security has crossed 95 percent of the market-wide position limit.
With inputs from Reuters & other agencies
