STATE OF THE MARKETS
SGX Nifty reports positive start
Nifty futures on the Singapore Stock Exchange traded 180 points, or 1.15%, at 15,881, signaling that Dalal Street was heading for a lag start on Monday.
- Technical view: Nifty50 has formed a small bullish candle on the daily chart. It ended up forming a “Harami” candle on the weekly chart. The weekly pattern is a bullish reversal pattern and it can be assumed that Nifty50 will see some upside in the coming days, independent analyst Manish Shah said.
- India VIX: The Fear Gauge was down almost 2% at 20.55 on Friday from its close at 20.88 on Thursday.
Asian stocks rebound at the open
Stocks gained in Asia on Monday amid improving risk sentiment after Wall Street rebounded strongly late last week as oil prices eased, tempering fears of prolonged inflation and the aggressive Federal Reserve tightening that accompanies it. The MSCI Asia-Pacific ex-Japan equity index rose 1.63%.
- The Japanese Nikkei rebounded 1.06%
- Australia’s ASX 200 gained 1.54%
- The New Zealand DJ jumped 1.32%
- South Korea’s Kospi jumped 1.80%
- Shanghai in China advanced 0.95%
- Hong Kong’s Hang Seng jumped 2.26%
US stocks rose sharply
Wall Street’s major indexes soared in a broad rally on Friday as signs of slowing economic growth and a recent pullback in commodity prices dampened expectations for the Federal Reserve’s rate hike plans.
- The Dow Jones jumped 2.68% to 31,500.68
- The S&P 500 rebounded 3.06% to 3,911.74
- The Nasdaq jumped 3.34% to 11,607.62
Oil prices slide
Oil prices fell more than $1 a barrel on Monday as global economic concerns depressed the outlook for oil demand as investors eyed the G7 meeting this week for possible action on Russian oil exports and a relaunch of the Iran nuclear deal.
Brent crude futures fell $1.42, or 1.3%, to $111.70 a barrel at 0010 GMT. U.S. West Texas Intermediate crude was at $106.08 a barrel, down $1.54, or 1.4%.
FII sell shares worth Rs 2,354 cr
Net-net, Foreign Portfolio Investors (REITs) became sellers of domestic equities to the tune of Rs 2353.77 crore, according to data available with NSE. However, DIIs remained net buyers at Rs 2,213.44 crore, according to the data. Foreign investors continue to desert Indian stock markets and have withdrawn almost Rs 46,000 crore so far this month.
F&O stocks are banned today
Four actions –
, , and – have been subject to an F&O ban since Monday, June 27. Blackout securities in the F&O segment include companies in which the security has crossed 95% of the market-wide position limit.
Rupee: The rupee slid 1 paisa on Friday to close at an all-time low of 78.33 against the U.S. dollar amid growing concerns over aggressive monetary policy tightening by central banks and relentless outflows of foreign capital.
10-year bonds: Indian 10-year bonds jumped 0.44% to 7.44 after trading in the 7.42-7.47 range on Friday.
Call rates: The weighted average overnight money rate stood at 4.64% on Thursday, according to RBI data. It evolved within a range of 3.30 to 4.85%.