The Indian stock market is expected to open in the green as trends on SGX Nifty indicate a positive opening for the index in India with a 67 points gain.
The BSE Sensex rallied 514.56 points or 1 percent to close at 51,937.44 on May 31 while the Nifty50 climbed 147.10 points or 0.95 percent to 15,582.80 and gained 6.5 percent during the month.
According to pivot charts, the key support levels for the Nifty are placed at 15,435.77, followed by 15,288.73. If the index moves up, the key resistance levels to watch out for are 15,668.07 and 15,753.33.
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:
Asian markets were mixed in Tuesday morning as investors await the release of a private survey on Chinese manufacturing activity in May. Japan’s Nikkei 225 rose 0.11% in morning trade while the Topix index gained 0.17. South Korea’s Kospi edged 0.62% higher.
Trends on SGX Nifty indicate a positive opening for the index in India with a 67 points gain. The Nifty futures were trading at 15,647 on the Singaporean Exchange around 07:30 hours IST.
Brent rises to near $70 on demand prospects
Oil prices rose on Tuesday ahead of an OPEC+ meeting and on optimism that fuel demand will grow in the months ahead with the summer driving season starting in the United States, the world’s top oil consumer.
Brent crude futures for August gained 56 cents, or 0.8%, to $69.88 a barrel by 0125 GMT. U.S. West Texas Intermediate crude for July was at $67.33 a barrel, up $1.01, or 1.5% from Friday’s close, with no settlement price for Monday due to a U.S. public holiday.
India’s gross domestic product (GDP) for COVID-hit 2020-21 contracted by 7.3 percent, even as GDP for the year’s last quarter (January-March 2021) grew by 1.6 percent, official data released by the National Statistical Office showed on May 31.
Indian residents cut back in their consumption expenditure sharply as their income fell, jobs were lost and sentiments dented by the uncertainties brought on by the Covid-19 pandemic during 2020-21. The shopping frenzy during the festival and wedding season was not enough to make up for the loss on spending in the first half of the fiscal year, national accounts data released on May 31 show.
Provisional estimates of gross domestic product (GDP) show that the per capita income measured in current prices had contracted 4% from a year ago. In response, consumer spending fell more sharply, by 7%. The national income at current prices had contracted 3%. The country’s population is estimated to have risen by 14 million between 2019-20 and 2020-21.
Markets regulator Sebi on Monday asked listed companies to make disclosure about loans and guarantees provided by them to promoter or any other entity controlled by them on a half-yearly basis in the compliance report on corporate governance. The move is aimed at bringing transparency and strengthening disclosures about such loans and guarantees, the Securities and Exchange Board of India (Sebi) said in a circular.
The regulator has come out with a new disclosure format in this regard which will be effective from financial year 2021-22. “In order to bring about transparency and to strengthen the disclosures around loans/ guarantees/comfort letters/ security provided by the listed entity, directly or indirectly to promoter/ promoter group entities or any other entity controlled by them, it has been decided to mandate such disclosures on a half yearly basis, in the compliance report on corporate governance,” Sebi said.
China factory growth picks up in May but inflation pressures build -Caixin PMI
China’s factory activity expanded at the fastest pace this year in May as domestic and export demand picked up, though sharp rises in raw material prices and strains in supply chains crimped some companies’ production, a business survey showed on Tuesday.
The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) rose to 52.0 last month, the highest level since December and inching up from April’s 51.9.
Fiscal deficit for 2020-21 was at 9.3 per cent of the gross domestic product (GDP), lower than 9.5 per cent estimated by the Finance Ministry in the revised Budget estimates, according to the CGA data. Unveiling the revenue-expenditure data of the Union government for 2020-21, the Controller General of Accounts (CGA) on Monday said that the revenue deficit at the end of the fiscal was 7.42 per cent.
In absolute terms, the fiscal deficit works out to be Rs 18,21,461 crore. For this financial year, the government had initially pegged the fiscal deficit at Rs 7.96 lakh crore or 3.5 per cent of the GDP in the budget presented in February 2020.
FII and DII data
Foreign institutional investors (FIIs) net bought shares worth Rs 2,412.39 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 179.78 crore in the Indian equity market on May 31, as per provisional data available on the NSE.
Stocks under F&O ban on NSE
Three stocks - Bank of Baroda, Punjab National Bank, and Sun TV Network - are under the F&O ban for June 1. 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.