Trends on SGX Nifty indicate a negative opening for the index in India with a 51 points loss.
The Indian stock market is expected to open in the red following global cues as virus cases continues to surge with the global death toll crossing the half a million mark. SGX Nifty indicates a 51 points loss with Nifty futures trading at 10,288 on the Singaporean Exchange.
Sensex rallied more than 300 points to reclaim 35,000 on June 26 while Nifty50 was also back above the crucial 10,300. The broader market underperformed the benchmarks. The S&P BSE Midcap index rose 0.27 percent while the S&P BSE Smallcap index closed with gains of 0.19 percent.
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’s major indexes tumbled more than 2% on Friday as several US states imposed business restrictions in response to a surge in coronavirus cases.
The Dow Jones Industrial Average fell 730.05 points, or 2.84%, to 25,015.55, the S&P 500 lost 74.71 points, or 2.42%, to 3,009.05 and the Nasdaq Composite dropped 259.78 points, or 2.59%, to 9,757.22.
Asian Markets
Asian share markets got off to a shaky start on Monday as the relentless spread of the coronavirus finally made investors question their optimism on the global economy, benefiting safe harbour bonds and the US dollar.
MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.2% and further away from a four-month top hit last week. Japan's Nikkei shed 1.5% and South Korean stocks was down 1.4%. E-Mini futures for the S&P 500 lost 0.3%.
SGX Nifty
Trends on SGX Nifty indicate a negative opening for the index in India with a 51 points loss. The Nifty futures were trading at 10,288 on the Singaporean Exchange around 07:30 hours IST.
India's forex reserves down by $2.078 billion to $505.566 billion
India's foreign exchange reserves retreated from a life-time high to touch $505.566 billion in the week ended June 19, down by $2.078 billion from the previous week, according to the RBI data. The forex reserves declined for the first time since April 24 when the assets dropped by $113 million to $479.455 billion. Between April 24 and June 12, forex reserves had grown by $28.189 billion.
In the week ended June 12, the reserves had increased by $5.942 billion to touch a record high of $507.644 billion. The reserves had crossed the half-a-trillion mark for the first time in the week ended June 5 after surging by a massive $8.223 billion and reached $501.703 billion.
Japan's May retail sales fall sharply as lockdown measures hit demand
Retail sales in Japan tumbled at a double-digit pace for the second straight month in May as the coronavirus pandemic and lockdown measures delivered a heavy blow to consumer confidence.
Retail sales fell 12.3% in May from a year earlier, pulled down by a slump in spending on big ticket items such as cars as well as clothing and general merchandise, trade ministry data showed on Monday. The decline followed a 13.9% drop in April, which was the biggest fall since March 1998, and was worse than a 11.6% fall forecast by economists in a Reuters poll.
Finance Commission's advisory council discusses possibility of debt consolidation road map post COVID
The advisory council to the 15th Finance Commission has discussed the impact of restrictions imposed due to the COVID-19 pandemic on tax revenue and possibilities for establishing a debt consolidation road map. In the virtual meetings with the Finance Commission on June 25-26, the Advisory Council felt that the impact of the pandemic on the economy and on the fiscal positions of the Union and state governments is still highly uncertain.
"The advisory council also discussed the adverse implications of constraints in the economy on tax revenue collections of the union and state governments. While noting that tax collections can be considerably affected by the pandemic, some members of the council indicated the impact of the pandemic on tax collections may also be asymmetric," an official statement said.
Indian economy in ‘deep trouble’, says S&P; GDP to contract by 5% in FY21
S&P Global Ratings said on June 26 that the Indian economy is in deep trouble with growth expected to contract by 5 percent in FY21. "India's economy is in deep trouble. Difficulties in containing the virus, an anemic policy response, and underlying vulnerabilities, especially across the financial sector, are leading us to expect growth to fall by 5 percent this fiscal year before rebounding in 2021," S&P said in a report.
Banks may lend less than they normally would in a recovery to focus on the overhang from the pandemic. Private firms may prefer to stabilize debt rather than ramp up spending on new investments, even though demand is improving.
Centre permits domestic airlines to increase capacity to 45%
The Centre has allowed domestic airlines to operate at 45 percent capacity. Domestic airlines had earlier been allowed to resume flight operations at one-third capacity, in a calibrated manner from May 25 onwards.
After remaining suspended for almost two months in light of the COVID-19-led lockdown, domestic flight operations were allowed to resume in a staggered manner towards the end of May. Following the announcement, Union Civil Aviation Minister Hardeep Singh Puri had said that minimum and maximum fares had been fixed, adding that fare would be regulated on the basis of flight duration.
Liquidity window for mutual funds induced confidence in system: SEBI
A joint move by SEBI and RBI for liquidity window to the mutual funds has helped induce confidence in the system, though not much demand for the scheme was seen, the capital market regulator said on Saturday.
"The move by SEBI & RBI jointly to extend a liquidity window to mutual funds helped build confidence in the system, though not much use was made of the window," an Indian Chamber of Commerce statement quoted SEBI whole-time director G Mahalingam as saying.
Results on June 29
Bharat Forge, Bharat Electronics, Petronet LNG, Central Bank of India, Jammu & Kashmir Bank, MRF, Alphageo India, Ansal Properties, Aurionpro Solutions, Balaji Telefilms, Bajaj Hindusthan Sugar, CESC, Dredging Corporation of India, Gujarat Fluorochemicals, Force Motors, GE T&D India, GIC Housing Finance, GMR Infrastructure, Himatsingka Seide, Indian Hume Pipe, Lux Industries, Maharashtra Seamless, Mangalam Drugs, Mercator, Minda Industries, MSTC, NOCIL, Panacea Biotec, Parag Milk Foods, PC Jeweller, Phoenix Mills, Premier Explosives, Pricol, Punjab & Sind Bank, Raymond, Reliance Communications, Religare Enterprises, Shree Renuka Sugars, Repco Home Finance, Rail Vikas Nigam, Shakti Pumps, SREI Infrastructure Finance, Texmo Pipes & Products, Time Technoplast, Venky's India, Veto Switchgears, Vivimed Labs, Welspun India etc.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 753.18 crore, while domestic institutional investors (DIIs) bought shares worth Rs 1,304.18 crore in the Indian equity market on June 26, provisional data available on the NSE showed.
With inputs from Reuters & other agencies
