Nifty charts are showing signs of indecisiveness among traders. Can the 50-pack index still extend its three-day rally? Here’s breaking down the pre-market actions.


STATE OF THE MARKETS


SGX Nifty signals negative start
Nifty futures on the Singapore Exchange traded 39.50 points, or 0.38 per cent lower at 10,290, in signs that Dalal Street was headed for a negative start on Tuesday.

Tech view: Nifty forms Doji candle
While forming higher highs and lows, the index made an indecisive Doji, as the opening and closing levels of the index were almost the same. “One cannot rule out profit booking at higher levels,” said analysts, who believe ‘buy on dips’ would be the right strategy in this market.

Asian shares mixed in early trade
The benchmark Japan’s Nikkei 225 index was up 0.85 per cent or 190.73 points at 22,628.00 in early trade. The Hang Seng edged up 0.12 per cent, or 30.10 points, to 24,541.44. The benchmark Shanghai Composite Index dipped 0.15 per cent, or 4.38 points, to 2,960.89.

Oil prices steady on demand hopes
Oil prices were steady on Tuesday amid more signs of fuel demand picking up. Brent crude was up 6 cents at $43.14 a barrel, after gaining 2.1 per cent on Monday. US oil was up 8 cents at $40.81 a barrel, having risen 1.8 per cent in the previous session.

US stocks settled higher
On Monday, the Dow Jones Industrial Average index rose 153.50 points, or 0.59 per cent, to 26,024.96. The S&P500 index rose 20.12 points, or 0.65 per cent, to 3,117.86. The Nasdaq Composite index jumped 110.35 points, or 1.11 per cent, to 10,056.47.

Q4 results today
Asian Paints, Berger Paints, Balrampur Chini, Bank of Baroda, DB Corp and Page Industries are among companies which will unveil their March quarter earnings on Tuesday.

DIIs sell Rs 1,288 cr worth of stocks
Net-net, foreign portfolio investors (FPIs) were buyers of domestic stocks to the tune of Rs 424.21 crore, data available with NSE suggested. DIIs were net sellers to the tune of Rs 1,287.69 crore, data suggests.

MONEY MARKETS

Rupee: The rupee on Monday appreciated by 17 paise to close at 76.03 against the US dollar in line with positive equity markets amid sustained foreign fund inflows.

10-year bonds: India 10-year bond yield rose 0.48 per cent to 5.87 after trading in 5.83-5.88 range.

Call rates: The overnight call money rate weighted average stood at 3.59 per cent, according to RBI data. It moved in a range of 1.80-4.05 per cent.

DATA/EVENTS TO WATCH

  • Q4 Earnings: Asian Paints I Berger Paints I Balrampur Chini I BoB I DB Corp I EIH I Page Ind I Union Bank
  • MSCI’s Market Classification Review 2020
  • US May New Home Sales (07.30 pm)
  • June Flash Services PMI (07.15 pm)
  • Euro Area June Manufacturing Flash PMI (01.30 pm)
  • UK June Flash Services PMI (02.00 pm

MACROS


Trump suspends H-1B, H4 visas… The Trump administration on Monday suspended a range of work visas for foreigners, including all H-1B and H4 (for H-1B spouses) till the end of this calendar year. Also suspended are L1 visas (for intra-company transfer) and J1 visas (used by doctors and researchers). A senior administration official said the measures, decreed through an executive order by the President, would be temporary, and would free up 525,000 jobs for US workers

Moody’s expects India to contract 3.1%… Moody’s Investors Service expects India’s economy to contract 3.1% in 2020 compared with 0.2% growth it projected in April. The rating company expects a stronger economic rebound for India at 6.9 per cent in 2021, as opposed to 6.2 per cent estimated in April, according to the June update of its Global Macro Outlook released Monday. China is among the few G20 countries expected to register growth in 2020, according to Moody’s, which maintained its earlier forecast of 1 per cent for the country.

Trade deficit with China narrows… India’s trade deficit with China is estimated to have narrowed to $48.7 billion last financial year — the lowest in five years — compared with $53.6 billion a year ago, as imports from across the border dropped over 7% to $65 billion in 2019-20. Last year’s trade deficit was roughly the same as the level seen in 2014-15, when the Narendra Modi administration first took office, but 34% higher than 2013-14, prompting the government to suggest that the steps taken by it in recent months have yielded results.

Checks on Chinese goods in the works… India is eyeing about 5,000 technical regulations to rein in cheap imports and provide a quality boost to domestically-made industrial goods, telecom products, electronics, steel and chemicals. The commerce and industry ministry has identified the top user ministries that deal with most imported products. These are telecom, chemicals, industry and heavy industry departments and the ministries of steel, and electronics and IT.

Sebi board may ease fund raising rules… Sebi board is likely to discuss the issue of relaxing pricing norms and making it easier for stressed companies to raise capital through preferential equity sale to financial and strategic investors. The board meeting — scheduled for June 25 — will also discuss whether rules on pricing should be relaxed for all companies as per the demands of the industry.

Local EPC players smile on China curbs… The sun appears to be shining on domestic infrastructure and construction companies. Despite the gloom surrounding plummeting capex spends, the government’s decision to relook at contracts for Chinese firms following the ongoing border face-off between India and China is making investors in this space smile. Some heavyweight EPC players could benefit from India’s focus on local companies for key infra and construction work and the difficulties that Chinese companies would face in securing meaningful contracts.

Select cos find themselves in FDI soup… A few listed companies are finding themselves in the mire of regulations after foreign investment limits in these firms were automatically increased to 100 per cent of their total equity. New rules allow full foreign ownership in listed companies unless the firm is part of the sector that has a cap on investments by overseas investors. Companies were required to pass a resolution before March 31 to decide on the foreign investment limit. Lawyers said some companies missed out on the deadline to bring in the cap because of the lockdown-related disruptions.

L
ife, health insurance premiums to rise… Covid may have brought home the importance of insurance, but it is also likely to make insurance more expensive. While term insurance products may become as much as 30% dearer, medical insurance premiums may rise by 20-25%. Insurers’ pricing calls will be influenced by their view that morbidity risks have gone up post-Covid and also by higher regulatory compliance costs, especially in medical insurance where regulator Irda has issued new coverage norms.







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