What changed for the market while you were sleeping? Top 10 things to know

The Indian stock market is expected to open in the red amid concerns over global economy as virus cases continue to surge. Trends on SGX Nifty indicate a negative opening for the index in India with a 45 points loss.

The S&P BSE Sensex pared intraday gains and closed in the red on June 30 while the Nifty50 managed to hold above the crucial 10,300 levels. Sensex fell 45 points to close at 34,915 while Nifty50 ended 10 points lower at 10,302.

According to pivot charts, the key support level for the Nifty is placed at 10,245.93, followed by 10,189.77. If the index moves up, the key resistance levels to watch out for are 10,379.63 and 10,457.17.

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

The S&P 500 rallied on Tuesday to finish higher and secure its biggest quarterly percentage gain in more than two decades as improving economic data bolstered investor beliefs that a stimulus-backed rebound for the US economy was on the horizon.

The Dow Jones Industrial Average rose 217.08 points, or 0.85%, to 25,812.88, the S&P 500 gained 47.05 points, or 1.54%, to 3,100.29 and the Nasdaq Composite added 184.61 points, or 1.87%, to 10,058.77.

Asian Markets

Asian stocks were set for a bumpy start to the second half of the year on Wednesday as optimism about a global economic recovery from the pandemic jousted with signs in the United States the health crisis may not yet be past its peak.

Stocks futures were mixed in early Asian trade with e-mini for the S&P 500 down 0.19% while with Japan’s Nikkei 225 futures rose 0.2%. Hong Kong’s Hang Seng index futures lost 0.42% and Australian S&P/ASX 200 futures were down 0.1%.

SGX Nifty

Trends on SGX Nifty indicate a negative opening for the index in India with a 45 points loss. The Nifty futures were trading at 10,229 on the Singaporean Exchange around 07:30 hours IST.

India's records marginal current account surplus of 0.1% of GDP in Q4 FY20

India's current account balance recorded a marginal surplus in the January-March quarter of FY20, as per data released by the Reserve Bank of India (RBI).

"India's current account balance (CAB) recorded a marginal surplus of $0.6 billion (0.1 percent of GDP) in Q4 FY20 as against a deficit of $4.6 billion (0.7 percent of GDP) in Q4 FY19 and $2.6 billion (0.4 percent of GDP) in the preceding quarter, i.e., Q3 FY20," RBI said in its release.

Fitch slashes India's FY22 growth forecast to 8%

Fitch Ratings on June 30 lowered India's growth forecast for 2021-22 fiscal to 8 percent from 9.5 percent projected last month. The rating agency, however, retained its projection of Indian economy contracting by 5 percent in the current fiscal.

Fiscal deficit for April-May 2020 at Rs 4.66 lakh crore, nearly 59% of annual target

India's fiscal deficit for the first two months of the fiscal year 2020-21 has come in at around 4.66 lakh crore, as per the report released by the Centre. This means that within the first two months of FY21, the fiscal deficit numbers have hit nearly 59 percent of the total budgeted target for the current fiscal.

The total receipts up until May stand at Rs 45,498 crore, while the total expenditure incurred by the government during this period is Rs 5,11,841 crore.

Oil rises after sharp drop in US crude inventories

Oil prices rose on Wednesday after an industry report showed crude inventories in the United States fell much more than expected, suggesting demand is improving even as the coronavirus outbreak spreads around the world.

Brent crude rose 33 cents, or 0.8%, to $41.60 a barrel by 0044 GMT after declining more than 1% on Tuesday. US crude was up 42 cents, or 1.1%, at $39.69 a barrel.

South Korea's June factory activity shrinks for sixth month: PMI

South Korea’s manufacturing activity extended declines in June as the coronavirus impact on global demand protracted, while uncertainty over the future development and economic recovery further weighed on business outlook.

The IHS Markit purchasing managers’ index (PMI) ticked up to 43.4 in June from 41.3 in May, but remained far below the 50-mark threshold that separates contraction from expansion for a sixth month.

Japan's June factory activity extends declines for 14th month: PMI

Japan’s factory activity shrank for a 14th straight month in June on sharp reductions in output and new orders, pointing to a heavy hit to demand from the coronavirus pandemic, a business survey showed on Wednesday.

The final au Jibun Bank Japan Manufacturing Purchasing Managers’ Index (PMI) rose to a seasonally adjusted 40.1 from 38.4 in May and a preliminary 37.8 released last week.

OPEC, Russia seen easing oil production cuts from August

OPEC and Russia will likely ease record oil production cuts from August as global oil demand recovers and prices have bounced back from their lows, four OPEC+ sources told Reuters. OPEC and its allies including Russia, have agreed to cut production by a record 9.7 million barrels per day, or 10 percent of global demand, from May to support oil prices as demand plunged because of the coronavirus pandemic.

Key OPEC+ ministers will meet in mid-July at a panel, known as the Joint Ministerial Monitoring Committee (JMMC), to recommend the next level of cuts.

May core sector output contracts 23.4%

The output of India's eight core sectors contracted 23.4 percent month-on-month in May due to the impact of the COVID-19 lockdown, data from the Commerce and Industry Ministry released on June 30 showed. For April-May 2020, the core sector output dipped 30 percent versus a 4.5 percent drop in the year-ago period.

Eight Core Industries growth at -23.4% versus -37.0% (MoM). Coal Output growth at -14% versus -15.5% (MoM). Crude Oil Output growth at -7.1% versus -6.4% (MoM). Natural Gas Output growth at -16.8% versus -19.9% (MoM). Refinery Output growth at -21.3% versus -24.2% (MoM). Fertiliser Output Growth at 7.5% versus -4.5% (MoM).

India's foreign exchange reserves up by $64.9 billion in FY20

The country's foreign exchange reserves in nominal terms increased by $64.9 billion in FY20 compared to a reduction of $11.7 billion in FY19, according to RBI. This increase in reserves includes the valuation effects, the Reserve Bank of India said in a release.

"Foreign exchange reserves in nominal terms (including the valuation effects) increased by $64.9 billion during 2019-20 as against a decline of $11.7 billion in the preceding year,” it said. The valuation gain, reflecting increase in gold prices, amounted to $5.4 billion during 2019-20 as against a loss of $8.3 billion during 2018-19.

I-T exemption on buying shares at discounted price in firms under insolvency proceedings

The CBDT has exempted from income tax the purchase of shares at rates lower than the market price in companies undergoing insolvency proceedings and whose board has been taken over by the government. Also investors in troubled debt-ridden Yes Bank who have invested in shares at a price lower than the fair market value (FMV) have been given income tax (I-T) exemption on their discounted investment price.

The Central Board of Direct Taxes (CBDT) through a notification said the exemptions would come into effect from April 1, 2020, and shall be applicable for the assessment year 2020-21 and thereafter.

NCLT reserves order on SBI plea against Anil Ambani to recover over Rs 1,200 cr

The National Company Law Tribunal (NCLT) on Tuesday reserved its order on the State Bank of India plea against Anil Ambani to recover over Rs 1,200 crore under the personal guarantee clause of the bankruptcy law.

The public sector lender had approached the tribunal under Section 97(3) of the Insolvency and Bankruptcy Code (IBC), seeking its intervention to direct the insolvency board to nominate a resolution professional (RP) to assess and submit a report on the assets owned by Ambani.

Loan recasts to only defer problem, NPAs may zoom up to 14% due to COVID-19: S&P Global Ratings

Amid reports of the RBI mulling restructuring of loans, global rating agency S&P on Tuesday said that a loan recast will only defer NPAs recognition and not solve the problem. The agency also said operational outages and the recession because of the pandemic will have a deeper and longer impact on lenders than previously assumed, and estimated the gross non-performing assets ratio to rise up to 14 percent in FY21 from the 8.5 percent in FY20.

"The COVID-19 pandemic may set back the recovery of India's banking sector by years, which could hit credit flows and, ultimately, the economy," the agency said.

Stamp duty on mutual funds from July 1

All mutual fund purchases will attract a stamp duty from July 1. While the charges will be levied on all debt as well as equity mutual funds, the impact is expected to be more on debt funds, which are usually held for shorter periods of 90. The stamp duty was expected to be levied from January 2020 but got deferred to April and then on to July, as per a report by Mint

SEBI seeks clarification on CAMS IPO

Markets regulator SEBI has sought clarifications from merchant bankers of the proposed initial public offering of Computer Age Management Services, which filed draft papers in January to raise an estimated Rs 1,500-1,600 crore. The CAMS' IPO will sell 1.22 crore equity shares through offer-for-sale by Great Terrain Investment, NSE Investments, Acsys Investments, HDFC and HDB Employees Welfare Trust, as per the draft papers.

Results on July 1

Eveready Industries, Tejassvi Aaharam, Premium Capital Market, Intense Technologies, Continental Controls and Budge Budge Company.

FII and DII data

Foreign institutional investors (FIIs) sold shares worth Rs 2,000.08 crore, while domestic institutional investors (DIIs) bought shares worth Rs 2,051.31 crore in the Indian equity market on June 30, provisional data available on the NSE showed.

1 stock under F&O ban on NSE

Vodafone Idea is under the F&O ban for July 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.

With inputs from Reuters & other agencies