Trends on SGX Nifty indicate a cautious opening for the indices. The Nifty futures were trading at 15,823 on the Singaporean Exchange.
Indian benchmark Indices are expected to open on a flattish note on account of global cues and trend suggested by SGX Nifty. US Retail sales data during the month of May and US 2-Day Fed meeting will commence from today (US Fed Interest rate decision on 16th June). Investors are on the lookout for signals from the Fed about a timetable for scaling back emergency monetary stimulus.
Asian markets rose following overnight gains on Wall Street that sent the S&P 500 and Nasdaq Composite to record closing highs. The Nikkei 225 in Japan gained 0.43 percent in early trade while the Topix index advanced 0.31 percent. South Korea's Kospit hovered above the flatline.
Asian stocks traded higher on Tuesday after their US peers closed at a record and a bond rally stalled ahead of a key Federal Reserve meeting. FIIs were net sellers Rs 504 crore while DIIs were net buyers Rs 544 crore in yesterday’s session.
Quarterly earnings to be released today
Key companies announcing their quarterly results today include Jubilant Food Works, Power Finance Corporation, LIC Housing Finance, Easy Trip Planners.
According to Mohit Nigam, Head-PMS, Hem Securities, "Immediate support and resistance for Nifty 50 are 15,600 and 15,850 respectively. Overall, the markets look in the positive territory and we believe that any significant dip is a good opportunity to accumulate quality stocks".
The Nifty recovered well from the lows in yesterday session, however, it has formed a hanging man candlestick pattern on the daily charts, said Jay Thakkar - VP and Head of Equity Research at Marwadi Shares and Finance Ltd. "So yesterday's High and low will become critical going forward. If yesterday's low gets broken then the trend will reverse from up to down else the uptrend will continue. The resistance on the upside is in the range of 15875-15900 levels on immediate basis," he said.
The Bank Nifty also recovered well from yesterday's low which coincided with the lower end of the falling channel. The immediate resistance is at 35000 which when taken off will take it to 35,300 on immediate basis. The support in the lower side is 34500 levels.
Adani Group stocks lose over Rs 1 lakh crore
In terms of market capitalisation, Adani group’s listed companies have seen an erosion of over Rs 1 lakh crore or over 10 per cent. However, the fall in market capitalisation is a fraction of what the combined group has achieved since last year, media reports said. Shares of Adani Ports ended down 8.5 per cent after falling as much as 19 percent. While Adani Green Energy clawed back most losses to end slightly lower, Adani Total Gas, Adani Transmission and Adani Power shed 5 percent.
The accounts of three foreign funds that are big stakeholders of Adani Group companies are not frozen, a top official of the National Securities Depository Ltd (NSDL) informed the port-to-energy conglomerate. Reports of a freeze on the accounts sent shares of several Adani group companies tumbling on Monday.
"The status of demat accounts mentioned in your trail email are held in 'active' status in NSDL system," Rakesh Mehta, vice president, NSDL told Adani officials, according news reports. Mehta was referring specifically to the account of Albula Investment Fund, Cresta Fund and APMS Investment Fund, which together own shares worth more than Rs 43,500 crore in Adani Enterprises, Adani Green Energy, Adani Transmission, and Adani Total Gas.
CPI inflation higher than April
Consumer Price Index-based inflation for the month of May came in at 6.30 percent, much higher than April's 4.23 percent, and outside the Monetary Policy Committee's inflation targeting range of 4 (+/-2) percent for the first time since November 2020. The higher inflation month-on-month was primarily on the back of a substantial hardening of food prices. Food inflation (CPFI) was 5.01 percent in May compared with 1.96 percent in April, official data showed.
RBI released consultative document
The Reserve Bank of India released a consultative document on June 14 on uniform regulation for companies engaged in microfinance business. The document aims at harmonising the regulatory frameworks for various regulated lenders in the microfinance space, the RBI said.
The key proposals include a common definition of microfinance loans for all regulated entities, capping the outflow on account of repayment of loan obligations of a household to a percentage of the household income, a Board-approved policy for household income assessment and no pre-payment penalty or requirement of collateral along with greater fflexibility of repayment frequency for all microfinance loans.
Fuel prices unchanged
A day after the hike, oil marketing companies (OMC) kept petrol and diesel prices unchanged on Tuesday across the four metro cities. In Delhi, petrol price remained at Rs 96.41 per litre while diesel at Rs 87.28 per litre.
In Mumbai, the price of petrol was held unchanged at an all-time high of Rs 102.58 per litre. Diesel price also continues to be at Rs 94.70 a litre, the highest among metros. In Chennai, petrol is priced at Rs 97.69 per litre while the price of diesel is Rs 91.92 per litre. The price of petrol in Kolkata is Rs 96.34 per litre while diesel is sold at Rs 90.12 per litre.