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SGX Nifty negative; hints at gap-down start for stock market indices

FPJ Web Desk | Updated on: Monday, May 31, 2021, 09:17 AM IST

Bombay Stock Exchange | File
Bombay Stock Exchange | File
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Religare Broking Vice-President (Research) Ajit Mishra.SGX Nifty was down 56 points or 0.36 percent at 15,436.50 on Singaporean Exchange on Monday morning hinting at a gap-down start for Sensex and Nifty.

At 09:03 AM, the Sensex was up 144.70 points or 0.28 percent at 51567.58, and the Nifty was up 50 points or 0.32 percent at 15485.70.

The MPC's interest rate decision, a host of macroeconomic data announcements, COVID-19 trends and global factors would be the major highlights in the equity market this week and their outcome would be a major driving force going ahead, analysts said.

Mohit NIgam, Head PMS - Hem Securities, said, after closing at record high levels last week, Indian equity markets are expected to open on a flat note looking at the early trends highlighted by SGX Nifty which is down by 0.45% to 14,423.

Asian markets began the week steady as investors continue to weigh inflation risk and await US jobs data. Several macro factors like GDP, fiscal deficit and RBI MPC outcome will guide Indian markets' performance this week. Also, consistent drop in daily COVID cases and certain relaxations regarding lockdown in Delhi, Haryana, Madhya Pradesh will boost investor sentiment. India VIX fell to 17.40 after dropping by 12.59% on Friday, this shall likely help in extending bullish momentum in equity markets.

"On technical front, Nifty 50 shall take support near 15,350 levels while major support stands around 15,200. Also, any further momentum in RIL's stock could also provide strength to Nifty 50," Nigam added.

Religare Broking Vice-President (Research) Ajit Mishra said, "this week marks the beginning of the new month also and a lot of important macroeconomic data and events are lined up. On the macroeconomic front, we have GDP data for the first quarter, core sector data, Markit Manufacturing PMI and services data scheduled during the week."

Foreign portfolio investors (FPI) turned out to be net sellers for second month in a row by taking out nearly Rs 1,730 crore from Indian markets in May as second wave of the coronavirus pandemic spooked investor sentiment.

In April, the total net outflow from the Indian capital markets (both equity and debt) stood at Rs 9,435 crore.

According to depositories data, overseas investors withdrew Rs 3,375.2 crore from equities but invested Rs 1,645.8 crore in the debt segment between May 1 and May 28.

This took the total net outflow to Rs 1,729.4 crore.

Asian stocks trade in red

Stock markets in Asia were trading in the negative territory on Monday morning. Japan’s Nikkei 225 declined 0.71 percent while the Topix index fell over half a percent. South Korea’s Kospi edged 0.14 percent lower.

Petrol prices up again

Petrol and diesel prices in the country were hiked again by oil marketing companies (OMCs) on Monday after a day’s gap. The prices have been increased for the 16th time since May 4.

On Monday, petrol price was hiked by a steep 29 paise per litre and diesel by 26 paise a litre, according to a price notification by state-owned fuel retailers.

After today’s hike, petrol prices in Delhi rose to Rs 94.23 per litre against Rs 93.94 on Sunday, while diesel price soared to Rs 85.15 per litre as compared to Rs 84.89 a litre on Sunday.

In Mumbai, the price of petrol and diesel stood at Rs 100.47 and Rs 92.45 per litre respectively.

The price of petrol and diesel in Chennai was Rs 95.76 and Rs 89.90 per litre respectively and Rs 94.25 and Rs 88.00 per litre in Kolkata.

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Published on: Monday, May 31, 2021, 09:05 AM IST