The trends on SGX Nifty indicate a gap-down opening for the Indian stock indices. Prashanth Tapse, Vice President (Research), Mehta Equities Ltd said, tracking overnight slump in US markets and subsequent fall in SGX Nifty, domestic equity markets in all probability will start on a weak note. Nifty will lack direction because the key driver of sentiment hinges on the RBI monetary policy outcome to trickle in on June 8. Commanding attention will also be Friday’s US CPI report when we will learn if price growth in the US has finally peaked. However, there is slight optimism in the air amidst the reopening of China’s economy and the said reopening that could give a boost to the global economy. Reports also suggest that daily COVID-19 cases are dropping significantly in China. Amidst this backdrop, metal stocks are likely to rise. We like Hindalco & Tata Steel with an interweek/intermonth perspective. Jindal Steel & Power could be a dark horse, Tapse added.
Mohit Nigam, Head - PMS, Hem Securities said the benchmark Indices are expected to open on negative note as suggested by trends on SGX Nifty. US stock markets ended slightly higher on Monday led by amazon which splits its share in 20:1. Overall sentiments still remain cautious as investors are worried about inflation and interest rates. Dow Jones was up by 16 points, whereas NASDAQ was up by 0.41% to 12599.0 levels.
Asian markets are trading on a mixed note as investors await the Reserve Bank of Australia's latest interest rate decision. Topix index trading at 0.3 percent higher whereas Australia s&p is trading 200 points lower. On the technical front 16,300 and 16700 are immediate support and resistance in Nifty 50. For Bank Nifty 34,800 and 35,600 are immediate support and resistance respectively, Nigam said.
On June 6, Sensex declined 93.91 points or 0.17 per cent at 55,675.32. The Nifty shed 18.50 points or 0.11 per cent at 16,565.80.
Asian stocks trade mixed
Shares in Asia-Pacific were mixed in Friday morning trade as investors await the Reserve Bank of Australia’s latest interest rate decision.
US markets close higher
US stocks rose on Monday, following gains in Asia and Europe on signs of an easing of restrictions by China, and as investors took expected interest rate hikes in coming days in their stride despite crude oil hitting $120 a barrel. The dollar gained against the euro ahead of a European Central Bank policy meeting on Thursday but was weaker against the commodity currencies - the Canadian, Australian and New Zealand dollars - as risk appetite increased.
Global markets up on Monday
Global equity markets rose on Monday on signs of an easing of COVID-19 pandemic-related and other restrictions by China and as investors took expected interest rate hikes in coming days in their stride despite crude oil hitting $120 a barrel. The dollar gained against the euro ahead of a European Central Bank policy meeting on Thursday but risk appetite ebbed after being higher earlier on the day.
Crude prices dips
Oil prices settled slightly lower after choppy trade on Monday, buoyed by Saudi Arabia raising its July crude prices but amid doubts that a higher output target for OPEC+ oil producers would ease tight supply.
India is looking to double down on its Russian oil imports with state-owned refiners eager to take more heavily-discounted supplies from Rosneft PJSC as international players turn down dealings with Moscow over its invasion of Ukraine.
(With inputs from Reuters, Agencies)
