Stock Market Today: Top 10 things to know before the market opens on 7th June
The market is likely to open marginally higher on June 7 as the SGX Nifty indicates a positive start for the broader index, with a gain of 42 points after opening the session at 18,728 points.
SGX futures touched a high of 18,745 in early trade on June 7.
The BSE Sensex gained 6 points to close at 62,792 points on Tuesday, while the Nifty 50 closed 5 points higher at 18,599 points.
The Nifty50 traded comfortably higher than its 200-day moving average of 18,353 and is expected to build on the recent momentum.
The Nifty may get support at 18,550, followed by 18,528 and 18,493.
If the index advances, then 18,619 will be the key resistance followed by 18,641 and 18,676.
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 42 points on Wednesday. SGX futures stood at 18,724.
US Markets
Stocks futures were flat in overnight trading after the S&P 500 notched its highest closing level of 2023.
The tail-end of earnings season pressed on with results from Dave & Buster’s and Stitch Fix.
Dave & Buster’s gained about 4 percent after the bell, while Stitch Fix added nearly 5 percent.
Futures tied to the Dow Jones Industrial Average dipped 8 points. S&P 500 futures and Nasdaq-100 futures traded flat. Stocks edged higher during Tuesday’s regular trading session.
The broad index added 0.24 percent to finish at its highest level since August 2022, while the Nasdaq Composite rose 0.36 percent to end at its highest close in 2023.
The Dow Jones Industrial Average ticked 10.42 points higher, or 0.03 percent, pressured by health stocks Merck and UnitedHealth
European Markets
European stocks closed higher Tuesday, with global markets lacking clear direction ahead of the new round of central bank interest rate decisions.
The pan-European Stoxx 600 index bounced either side of the flatline in morning trade and closed 0.4 percent higher, clawing back most of Monday’s losses.
The FTSE closed 0.37 percent higher at 7628 points.
DAX closed 0.18 percent higher at 15,992 points. CAC 40 Index closed 0.11 percent higher at 7209 points.
Asian Markets
Asia-Pacific markets are trading mixed as the region looks to China’s May trade data and a speech from Reserve Bank of Australia governor Philip Lowe, a day after Australia’s central bank defied expectations and raised its benchmark interest rate to its highest in 11 years.
In Australia, the S&P/ASX 200 rose 0.14 percent, ahead of Australia’s first quarter GDP numbers.
The country’s economy is expected to expand 2.4 percent year-on-year, slightly slower than the 2.7 percent recorded in the fourth quarter of 2022.
The rally in Japanese stocks seemed to have taken a pause with the Nikkei 225 slid 1.42 percent, leading losses in the region.
The Topix saw a smaller loss of 1 percent.
South Korea’s markets came back from a public holiday with a positive start, with the Kospi climbing 0.31 percent and the Kosdaq up by 0.9 percent.
Hong Kong’s Hang Seng index is set for a rebound after slipping slightly in Wednesday’s session, with futures at 19,351 compared to the HSI’s close of 19,099.28.
World Bank offers dim outlook for the global economy in face of higher interest rates
The global economy is likely slowing sharply this year, hobbled by high interest rates, the repercussions of Russia’s invasion of Ukraine and the lingering effects of the coronavirus pandemic.
That’s the latest outlook of the World Bank, a 189-country anti-poverty agency, which estimates that the international economy will expand just 2.1% in 2023 after growing 3.1% in 2022.
Speaking to reporters, Indermit Gill, the World Bank’s chief economist, called the latest findings “another gloomy report.
The bank, he said, expects “last year’s sharp and synchronized slowdown to continue to this year into a sharp slowdown.”
Morgan Stanley sees Sensex at 68,500 by Dec on cool-off in commodities, rate hike pause
Morgan Stanley expects the BSE bellwether Sensex to reach 68,500 points by December, a potential increase of 10 percent from the current level and expects the index to trade at a trailing price-to-earnings multiple of 20.5 times compared to a 25-year average of 20x. The brokerage firm said that the premium over the historical average reflects greater confidence in medium-term growth.
The target on the Sensex is based on factors such as the absence of significant upward movements in commodity prices, the US escaping a recession, and the Reserve Bank of India maintaining a pause in its actions.
Oil prices
Oil prices were little changed on Tuesday after erasing earlier losses as worries over sluggish global economic growth that could reduce energy demand offset Saudi Arabia’s pledge to deepen output cuts.
Brent futures remained unchanged at $76.71 a barrel at 11:18 a.m. EDT (1518 GMT), while U.S. West Texas Intermediate (WTI) crude rose 12 cents, or 0.2 percent, to $72.27.
Earlier in the session, WTI was down $2 a barrel and Brent down almost $2.
Dollar
The Dollar index traded 0.21 percent higher in futures at 104.15, whereas the value of one dollar hovered near Rs 82.52.
Gold
Gold prices were little changed on Tuesday as Treasury yields and the dollar firmed, with bullion trading in a tight range as investors awaited more cues to assess the Federal Reserve’s policy path.
Spot gold rose less than 0.1 percent to $1,963.19 per ounce by 12:18 p.m. EDT. U.S. gold futures were up 0.4 percent at $1,982.20.
FII and DII
Foreign institutional investors (FIIs) bought shares worth Rs 385.71 crore, whereas domestic institutional investors (DIIs) sold shares worth Rs 489.02 crore on June 6, provisional data from the National Stock Exchange shows.
ByMoneycontrol
