The market is expected to open in the green as trends in the SGX Nifty indicate a positive opening for the broader index in India with a gain of 40 points.
The BSE Sensex closed 237 points higher at 51,598, while the Nifty50 climbed 57 points to 15,350 and formed a Hammer or Doji kind of pattern on the daily charts.
As per the pivot charts, the key support level for the Nifty is placed at 15,233, followed by 15,117. If the index moves up, the key resistance levels to watch out for are 15,425 and 15,499.
Stay tuned to Moneycontrol to find out what happens in the 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
Stock futures rose in overnight trading Monday following a brutal week as investors assessed a more aggressive Federal Reserve and rising chances of a recession. Futures on the Dow Jones Industrial Average jumped 380 points, or around 1.3 percent. S&P 500 futures climbed 1.12% and Nasdaq 100 futures also rose 1.14 percent. US stock markets were closed earlier Monday for Juneteenth.
Asian Markets
Asia-Pacific markets were mostly buoyant on Tuesday while bitcoin continued to rise after a recent rebound. Australia’s central bank says inflation will peak by the end of the year ahead ahead of a meeting minutes release this morning.
Japan’s Nikkei 225 was 1.67 percent higher while the Topix rose by 1.72%. The Kospi in South Korea was also in positive territory, trading 0.13 percent higher. Australia’s S&P/ASX 200 rose 1.14 percent, and the MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.12 percent.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the broader index in India with a gain of 40 points. The Nifty futures were trading around 15,402 levels on the Singaporean exchange.
Oil rises on market caution over supply concerns
Oil prices rose 1% in early trade on Tuesday, clawing back more of last week's losses as the focus returned to tight supply of crude and fuel products versus concerns about a recession hitting demand down the track.
Brent crude futures rose $1.32, or 1.2 percent, to $115.45 a barrel at 0040 GMT, adding to a 0.9% gain on Monday. The benchmark contract fell 7.3 percent last week in its first weekly fall in five.
Non-banks cannot load credit lines into prepaid payment instruments: RBI to fintechs
In what comes as a blow for well-funded fintech startups such as Jupiter, Slice, Uni, PayU's LazyPay, Fi, among others, the Reserve Bank of India (RBI) on June 20 issued a clarification on Prepaid Payment Instruments (PPIs) such as wallets and prepaid cards, saying that non-bank institutions cannot load credit lines into these instruments, according to sources.
The notification was addressed to "All Authorised Non-bank Prepaid Payment Instrument (PPI) Issuers." According to multiple sources, the notification was sent to non-bank PPI issuers, including fintech players.
RBI's clarification which was reviewed by Moneycontrol said, "The PPI-MD does not permit loading of PPIs from credit lines. Such practice, if followed, should be stopped immediately. Any non-compliance in this regard may attract penal action under provisions contained in the Payment and Settlement Systems Act, 2007."
EPFO Payroll: April records 9.23 lakh fresh additions to formal work
At least 922,752 people joined formal work for the first time in April 2022, lower than March additions, the payroll data of the Employees’ Provident Fund Organisation (EPFO) showed on June 20.
The new payroll additions recorded in April, the first month of FY23, are almost 45,000 less than the new additions in March, when the pension fund had added 968,163 new subscribers. In February, this number was 886,836 and in January 2022, it was 937,610, as per official data released in May.
As per provisional payroll data released by EPFO on Monday, at least 494,490 fresh additions were in the 18-25 age group, a key consideration while evaluating the labour market movement. Among other age cohorts, people above the age of 35 came second with nearly 169,597 fresh additions.
US likely to fall into recession by end of 2022: Nomura
The US economy will likely fall into a mild recession by the end of 2022 as the Federal Reserve raises rates to tame prices, according to economists at Nomura Holdings Inc.
“With rapidly slowing growth momentum and a Fed committed to restoring price stability, we believe a mild recession starting in the fourth quarter of 2022 is now more likely than not,” Nomura economists Aichi Amemiya and Robert Dent wrote in a note on June 20.
FII and DII data
Foreign institutional investors (FIIs) have net sold Rs 1,217.12 crore worth of shares, whereas domestic institutional investors (DIIs) remained net buyers, to the tune of Rs 2,093.39 crore worth of shares on June 20, as per provisional data available on the NSE.
Bank of Korea raises inflation forecasts, will review 'big step' hikes
South Korea's central bank on Tuesday said it expects inflation will be higher than earlier projected and that it would closely assess debt repayment burdens to determine whether a half-percentage point interest rate hike in July was appropriate.
The Bank of Korea, which raised its 2022 forecast for annual average inflation sharply to 4.5 percent less than a month ago, said it does not rule out the possibility of inflation exceeding the 4.7 percent reached in 2008.
Stocks under F&O ban on NSE
Two stocks – Indiabulls Housing Finance and RBL Bank remained under the NSE F&O ban for June 21. 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 and other agencies