STATE OF THE MARKETS
SGX Nifty signals a positive start
Handy futures on the Singapore Exchange traded 37.5 points, or 0.24 percent, higher at 15,399.5, indicating Dalal Street was off to a positive start on Tuesday.
- Technical view: Nifty50 on Monday broke a six-day losing streak and formed an indecisive candle on the daily chart. The pre-decline ratio for the broader market remained skewed in favor of the bears, but analysts said certain Nifty50 technical parameters point to a future recovery.
- India VIX: The fear meter fell about 2 percent on Monday to 22.41 while closing at 22.74 on Friday.
Asian stocks open higher
Asian stocks opened slightly higher on Tuesday morning, extending gains from the previous day, following a positive lead out of Europe as markets returned to some stability after last week’s heavy losses. The MSCI index of Asia-Pacific stocks outside Japan rose 0.81 percent.
- Japanese Nikkei rose 1.81%
- Australian ASX 200 won 1.13%
- New Zealand DJ jumped 0.47%
- Kospi in South Korea zoomed in 0.51%
- China’s Shanghai rose 1.11%
- Hang Seng from Hong Kong added 0.13%
US stocks closed on Monday
US stocks were closed Monday as Wall Street observed a federal holiday on Juneteeth’s account. US equities closed on Friday with a modest rebound, but still suffered their biggest weekly percentage drop in two years as investors grappled with the growing prospect of a recession as global central banks tried to stamp out inflation.
- Dow Jones lost 0.13% to 29,888.78
- S&P 500 gained 0.22% to 3,674.84
- Nasdaq rose 1.43% to 10,798.35
Australian dollar rises
The Australian dollar rose Tuesday after the central bank indicated more rate hikes were on the way, but the rebound was limited by lower commodity prices, as the Japanese yen languished near its 24-year low.
- Dollar Index Fixed at 104.38
- Euro tapped to $1.0519
- Pound climbed to $1,227
- Yen struggled with 135.1 per dollar
- Yuan exchanged hands at 6.7079 against the dollar
Oil rises due to supply concerns
Oil prices rose 1 percent in early trading Tuesday, reversing losses from last week as focus returned to tight supply of crude oil and fuel products versus concerns about a recession that would hit demand.
Brent crude futures were up $1.32 or 1.2 percent to $115.45 a barrel at 0040 GMT, contributing to a 0.9% gain on Monday. US West Texas Intermediate (WTI) crude futures rose to $111.51 a barrel, up $1.95, or 1.8 percent, from Friday’s close.
FIIs sell shares worth Rs 1,217 cr in June
Net, foreign portfolio investors (FPIs) turned sellers of domestic stocks to the tune of Rs 1217.12 crore, data available from NSE suggested. However, DIIs remained net buyers at a cost of Rs 2093.39 crore, data suggests.
Shares in F&O Ban Today
Three shares –
and – remain under the F&O ban before Tuesday, June 21. Prohibited securities under the M&A segment include companies whose security has exceeded 95 percent of the market-wide position limit.
rupee: The rupee rose for the third straight session, gaining 7 paise to settle at 77.98 against the US dollar on Monday as the price of crude oil pulled back from elevated levels. However, the continued outflow of foreign funds limited profits.
10-year bonds: Ten-year Indian bonds fell sharply 1.58 percent to 7.43 after trading in a range of 7.42 to 7.50 on Monday.
Call rates: The weighted average overnight money rate was 4.54 percent Thursday, according to data from RBI. It moved in a range of 2.35-4.80 percent.