The Indian stock market is expected to open in the green following positive global cues on upbeat US data and hopes for stimulus-backed economic rebound. Trends on SGX Nifty indicate a positive opening for the index in India with a 62 points gain. The Nifty futures were trading at 10,309 on the Singaporean Exchange.
On June 29, Sensex ended 210 points, or 0.6 percent, down at 34,961.52 and Nifty finished 71 points, or 0.68 percent, lower at 10,312.40.
According to pivot charts, the key support level for the Nifty is placed at 10,244.67, followed by 10,176.93. If the index moves up, the key resistance levels to watch out for are 10,359.07 and 10,405.73.
Stay tuned to Moneycontrol to find out what happens in 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:
US Markets
Wall Street stocks closed higher on Monday and the S&P 500 was poised to clinch its biggest quarterly percentage gain since 1998 as investors hoped for a stimulus-backed economic rebound, while a surge in Boeing shares helped boost the blue-chip Dow.
The Dow Jones Industrial Average rose 580.25 points, or 2.32%, to 25,595.8, the S&P 500 gained 44.19 points, or 1.47%, to 3,053.24 and the Nasdaq Composite added 116.93 points, or 1.2%, to 9,874.15.
Asian Markets
Asian markets poised to follow Wall Street’s firm lead on Tuesday as the sentiment boost from upbeat US data outweighed the threat of rising COVID-19 infections in the world’s largest economy.
Australian S&P/ASX 200 futures rose 1.15% while Japan’s Nikkei 225 futures ticked up 0.11%. Hong Kong’s Hang Seng index futures climbed 0.62%.
SGX Nifty
Trends on SGX Nifty indicate a positive opening for the index in India with a 62 points gain. The Nifty futures were trading at 10,309 on the Singaporean Exchange around 07:30 hours IST.
Bharat Biotech's COVID-19 vaccine gets DCGI nod to conduct human trials
The Drug Controller General of India (DCGI) on June 29 granted permission to Bharat Biotech to initiate Phase I and II human clinical trials of its novel coronavirus, or COVID-19, vaccine. The permission to conduct human trials was granted after the company submitted results generated from pre-clinical studies, demonstrating safety and immune response.
"Results from these studies have been promising and show extensive safety and effective immune responses," the management said. Human clinical trials are scheduled to start across India in July.
Japan factory output slumps as economy sinks deeper in recession
Japan’s industrial output fell for a fourth straight month in May to the lowest level since the global financial crisis, highlighting the widespread impact of the coronavirus on factory and overall business and consumer activity.
Ministry of Economy, Trade and Industry data out on Tuesday showed that factory output fell 8.4% month-on-month in May to 79.1, a level not seen since March 2009 when the financial crisis sapped global demand. The slump followed a 9.8% decline in the previous month, and was much bigger than the median market forecast of a 5.6% drop in a Reuters poll of economists.
China's June factory activity quickens to three-month high: official PMI
China’s factory activity expanded at a faster pace in June, beating expectations, as the economy continues to recover after the government lifted strict lockdowns and ramped up investment, but weak global demand is likely to be a drag on growth.
The official manufacturing Purchasing Manager’s Index (PMI) rose to a three-month high of 50.9 in June from 50.6 in May, above the 50-point mark that separates growth from contraction on a monthly basis. Analysts had expected it to slow to 50.4.
SEBI again relaxes compliance requirement for portfolio managers
Markets watchdog Sebi on Monday eased compliance requirement for portfolio managers amid prevailing business conditions amid coronavirus pandemic. The decision was taken after receiving requests from portfolio managers and considering the prevailing business and market conditions due to the pandemic.
In a circular, Securities and Exchange Board of India (Sebi) said it has extended the timeline for compliance with the requirements of portfolio managers guideline regarding upfront fee, among others, by further three months till October 1, 2020.
Oil prices slip as weak Japan data exposes market jitters over fragile demand
Oil prices fell in early trade on Tuesday after weak Japanese industrial production data, not usually a market-moving factor, was enough to jangle trader nerves over a bumpy recovery in fuel demand as coronavirus pandemic restrictions ease.
US West Texas Intermediate (WTI) crude futures briefly traded higher then fell 38 cents, or 1%, to $39.32 a barrel by 0038 GMT, after climbing 3% on Monday. Brent crude futures for September fell 32 cents, or 0.8%, to $41.53 a barrel, paring Monday’s 92-cent gain.
Bharat Bond ETF's second tranche to open for subscription on July 14
The second tranche of Bharat Bond ETF, through which the government is looking to raise up to Rs 14,000 crore, will open for subscription on July 14. The subscription will be closed on July 17, Edelweiss AMC said.
Edelweiss Asset Management in May said it will launch the second tranche of Bharat Bond ETF in July, with two new series, to raise up to Rs 14,000 crore. Through the launch of the two new ETF series, Edelweiss Mutual Fund proposed to raise an initial amount of Rs 3,000 crore with a green shoe option of Rs 11,000 crore based on market demand.
RBI is back with 'operation twist', yet again
The banking regulator is back with ‘operation twist’ or what markets call open market operations (OMO), under which the Reserve Bank of India (RBI) conducts simultaneous sale and purchase of bonds. This time, the central bank will purchase government securities maturing between 2027 and 2033, while it sells short-term bills maturing in October and April 2021.
The result of the auctions will be announced on the same day and the RBI reserves the right to accept or reject any or all the bid/offers either wholly or partially without assigning any reasons, it said.
Passenger train, domestic flight operations to be expanded in calibrated manner
The government on June 29 released guidelines for second phase of Unlock in which certain economic and social activities have been permitted. The new guidelines will come into effect from July 1, the Union Home Ministry said. The new guidelines are based on feedback received from States and Union Territories, and extensive consultations held with related Central Ministries and Departments.
The operations of domestic flights and passenger trains will be further expanded in a calibrated manner, the Centre said.
Homegrown startups like Mitron and Chingari to benefit from TikTok ban
Domestic video making apps such as Mitron TV and Chingari are certainly looking for a brighter future with Chinese rival TikTok being banned by the government citing security concerns. The announcement comes at a time when these apps were already riding high given the anti-China sentiments following border standoffs and the novel coronavirus outbreak.
Launched in May, Mitron TV was a smash hit even though founders Anish Khandelwal and Shivank Agarwal were testing waters with a beta version of the short-video app while working full-time jobs. The app has already garnered over 10 million downloads in India.
PM Modi to address the nation at 4 pm today
Prime Minister Narendra Modi will address the nation on June 30 at 4 pm. His address comes against the backdrop of a bitter standoff between Indian and Chinese troops in eastern Ladakh where 20 Indian army personnel were killed in clashes on June 15 in Galwan Valley.
Also, the country will be entering "unlock 2" from July 1 for which guidelines were issued by the Union Home Ministry on Monday night, further easing the restrictions imposed due to the coronavirus lockdown.
Results on June 30
ONGC, Vodafone Idea, NBCC, RITES, Shalimar Paints, Deepak Fertilisers, Godfrey Phillips, ICRA, Mishra Dhatu Nigam, The New India Assurance Company, etc.
FII and DII data
Foreign institutional investors (FIIs) sold shares worth Rs 1,937.06 crore, while domestic institutional investors (DIIs) bought shares worth Rs 1,036.13 crore in the Indian equity market on June 29, provisional data available on the NSE showed.
With inputs from Reuters & other agencies
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