Stock Market Today: Top 10 things to know before the market opens on 5th june
The market is likely to open marginally higher on June 5 as the SGX Nifty indicates a positive start for the broader index, with a gain of 88.5 points after opening the session at 18,715.
SGX futures touched a high of 18,717.6 in early trade on June 5.
The BSE Sensex gained 118 points to close at 62,547 points on Friday, while the Nifty 50 closed 46 points lower at 18,534 points.
The Nifty50 traded comfortably higher than its 200-day moving average of 18,309 and is expected to build on the recent momentum.
The Nifty may get support at 18,492 followed by 18,470 and 18,433. If the index advances, 18,565 will be the key resistance followed by 18,588 and 18,624.
Stay tuned to Moneycontrol to find out what happens in the 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.
SGX Nifty
The SGX Nifty indicates a marginally higher start for the broader index with a gain of 88.5 points on Monday. SGX futures stood at 18,717.
US Markets
US equity futures were changed little on Sunday evening after a broad-based rally last week that pushed the S&P 500 to its best week since March, and its highest level since last August.
Futures tied to the Dow Jones Industrial Average added 75 points.
S&P 500 futures were higher by 0.09 percent and Nasdaq-100 futures hovered below the flat line.
On Friday, stocks rallied to end the week following strong jobs data for the month of May.
The Dow jumped 701.19 points, or 2.12 percent, for its best day since January, ending the week at 33,762.76.
The S&P 500 rose 1.45 percent to 4,282.37, while the Nasdaq Composite climbed 1.07 percent to 13,240.77 and posted its sixth straight weekly advance.
European Markets
European stock markets closed higher Friday, after US lawmakers passed a bill to raise the debt ceiling and cap government spending for two years, days before the default deadline.
The Stoxx 600 index ended up 1.5 percent, as it climbed further from the two-month low hit on Wednesday.
Mining stocks led gains, up 4.2 percent, while autos rose 2.9 percent. Oil and gas stocks rose 2.3 percent ahead of the OPEC+ meeting.
The FTSE closed 1.56 percent higher at 7607 points. DAX closed 1.25 percent higher at 16,051 points. CAC 40 Index closed 1.87 percent higher at 7270 points.
Asian Markets
Asia-Pacific markets are largely higher after US President Joe Biden signed into law a debt ceiling bill that allowed the US to avert defaulting on its financial obligations over the weekend.
In Japan, the Nikkei 225 rose further after leading its global peers for the month of May, gaining 0.97 percent, while the Topix opened 1.16 percent higher.
The next level to watch for investors will be the 32,644 mark which would breach its highest since July 1990.
South Korea Kospi inched up 0.44 percent, but the Kosdaq was down marginally. Australia’s S&P/ASX 200 was up 0.99 percent ahead of the country’s central bank rate decision tomorrow.
Hong Kong’s Hang Seng index looks to continue its rebound on Friday, with futures at 19,099 compared to the HSI’s close of 18,949.94.
FPIs investment hit 9-month high at Rs 43,838 crore in May on strong domestic macro-outlook, reasonable valuation
Foreign Portfolio Investors (FPIs) pumped in Rs 43,838 crore in Indian equities in May, the highest level in nine months, supported by strong macroeconomic fundamentals, and reasonable valuations.
FPIs continued the buying stance in June too, and invested Rs 6,490 crore in just two trading sessions of the month, data with the repositories showed.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said that inflow by FPIs will continue in the current month since the latest GDP data and high-frequency indicators reflect a robust economy gaining further strength.
RBI likely to maintain pause on interest rate as inflation moves southwards:
The Reserve Bank of India (RBI) will maintain the policy repo rate at 6.5 per cent during its upcoming June 8 announcement, considering the easing of retail inflation in April and the potential for further decline, indicating the effectiveness of previous policy rate actions, anticipate experts.
Headed by Reserve Bank Governor Shaktikanta Das, a meeting of the six-member Monetary Policy Committee (MPC) is scheduled for June 6-8. The decision of the 43rd meeting of the MPC would be announced on Thursday, June 8.
Oil prices
Oil prices rose more than 2 percent on Friday after the U.S. Congress passed a debt ceiling deal that averted a government default in the world’s biggest oil consumer and jobs data fed hopes for a possible pause in interest rate hikes ahead of a meeting of OPEC and its allies this weekend.
Brent futures settled up 2.49 percent to $76.13 a barrel. U.S. West Texas Intermediate (WTI) crude rose 2.34 percent to $71.74. For the week, both contracts fell more than 1 percent for their first weekly losses in three weeks.
The US Senate approved a bipartisan deal to suspend the limit on the US government’s $31.4 billion debt ceiling, staving off a sovereign default that would have rocked financial markets.
Dollar
The Dollar index traded 0.47 percent higher in futures at 103.99, whereas the value of one dollar hovered near Rs 82.40.
Gold
Gold fell on Friday as hotter-than-expected jobs data lifted Treasury yields, while a higher unemployment rate kept alive hopes that the Federal Reserve would pause interest rate hikes which have put bullion on course for a weekly gain.
Gold settled down 1.3 percent at $1,969.6 per ounce and close up 1.3 percent for the week for its first positive week in four and its best weekly performance since April.
US nonfarm payrolls grew by 339,000 in May, beating expectations for an increase of 190,000, but the unemployment rate rose to 3.7 percent from a 53-year low of 3.4 percent in April.
FII and DII
Foreign institutional investors (FIIs) sold shares worth Rs 658.88 crore, whereas domestic institutional investors (DIIs) bought shares worth Rs 581.85 crore on June 2, provisional data from the National Stock Exchange shows.
ByMoneycontrol
