Stock Market Today: Top 10 things to know before the market opens on 9th june
The market is likely to open marginally higher on June 9 as the SGX Nifty indicates a positive start for the broader index, with a gain of 35 points after opening the session at 18,744 points.
SGX futures touched a high of 18,798 in early trade on June 9.
The BSE Sensex lost 294 points to close at 62,848 points on Thursday, while the Nifty 50 closed 91 points lower at 18,634 points.
The Nifty50 traded comfortably higher than its 200-day moving average of 18,398 and is expected to build on the recent momentum.
The Nifty may get support at 18,614 followed by 18,576 and 18,514.
If the index advances, then 18,738 will be the key resistance followed by 18,776 and 18,838.
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 35 points on Friday.
SGX futures stood at 18,755.
US Markets
US stock futures ticked lower Thursday night after the S&P 500 notched its highest close for 2023.
Dow Jones Industrial Average futures fell by 54 points, or 0.16 percent.
S&P 500 futures dipped 0.12 percent, while Nasdaq 100 futures inched down by 0.08 percent.
DocuSign shares jumped 5 percent in extended trading after the electronic agreements firm beat analysts’ first-quarter expectations on the top and bottom lines.
Stocks added to their recent rally during Thursday’s regular session, with the S&P 500 posting its highest closing level this year.
The broader index climbed 0.62 percent to 4,293.93 — just shy of a key 4,300 threshold.
Meanwhile, the Dow Jones Industrial Average added 168.59 points, or 0.5 percent, in its third straight day of gains.
The Nasdaq Composite rallied 1.02 percent.
European Markets
European stocks continued to tread water Thursday, reflecting uncertain global sentiment.
The pan-European Stoxx 600 index provisionally closed flat, with sectors spread across positive and negative territory.
Telecoms stocks led losses with a 1.1 percent downturn, while gains were led by a 1.2 percent uptick in auto stocks.
The FTSE index closed 0.32 percent lower at 7599 points. DAX closed 0.18 percent higher at 15,989 points.
Asian Markets
Asia-Pacific markets are set to rise after the S&P 500 hit a new high for 2023 and the Dow Jones Industrial Average saw a third straight day of gains.
A key focus for next week would be the U.S. Federal Reserve’s policy meeting on June 13 and 14, especially after jobless claims increased more than expected to their highest since October 2021, a potential sign that the labor market is softening up after more than a year of interest rate hikes.
Asia investors will be watching for China’s consumer price index for May, after the country saw its inflation rate sink to just 0.1 percent in April, it lowest point since November 2020.
Producer prices, meanwhile, are expected to fall by 4.3 percent in May, according to a Reuters survey, which would mark the lowest since mid-2016.
In Japan, the Nikkei 225 popped 1.16 percent, reversing some of its losses the last two days, while the Topix gained 0.78 percent. South Korea’s Kospi inched 0.39 percent higher and the Kosdaq moved up 0.76 percent, while Australia’s S&P/ASX 200 rose 0.28 percent.
Hong Kong’s Hang Seng index futures stood at 19,379, pointing to a higher open compared to the HSI’s last close of 19,299.18.
RBI MPC: Deposit and lending rates remain on a steady path
Once every two months, the Monetary Policy Committee (MPC) of the Reserve Bank of India meets to review interest rates and other aspects of policy related to the economy.
Prior to a review meeting, the market builds in expectations on interest rate action, i.e., a hike or cut.
Prior to yesterday’s meeting, the expectation was that interest rates would be left unchanged.
Apart from interest rate per se, there is a stance or approach towards rate formulation.
The stance from the MPC remains “withdrawal of accommodation”.
There are three conventional approaches: hawkish, or a bias towards rate hikes, dovish, or a bias towards rate cuts, and neutral.
The stance of “withdrawal of accommodation” is not usual; it stands somewhere between neutral and hawkish.
There was a case for a change of stance to neutral as inflation has eased significantly.
Real interest rates, given that inflation printed at 4.7 percent, repo rate being at 6.5 percent and 1-year Treasury bill yield being around 7 percent, are comfortably positive.
RBI approves FLDG, key to partnership between fintechs & banks/NBFCs
The Reserve Bank of India (RBI) has approved the First Loss Default Guarantee (FLDG) programme, a popular product that fintech’s in the country use to form partnerships with banks and non-banking financial companies (NBFCs).
The RBI had said in its Digital Lending Guidelines last year that it was not opposed to the idea of FLDG.
This is the first time that the banking regulator has explicitly approved such a product.
However, RBI has capped the FLDG amount at 5 percent of the total loan value.
Oil prices
Oil dipped on Thursday as tighter supply resulting from Saudi Arabia’s pledged production cut and a potential pause to U.S. interest rate hikes offset worries over demand weakness and a global economic slowdown.
At an OPEC+ meeting on Sunday, Saudi Arabia said it will cut its crude output by 1 million barrels per day (bpd) in July on top of a broader deal to limit supply into 2024 as the producer group seeks to boost flagging prices.
Brent crude dipped 30 cents, or 0.4 percent, to $76.65 a barrel.
U.S. West Texas Intermediate crude lost 41 cents cents, or 0.66 percent, to $72.05.
Dollar
The Dollar index traded 0.72 percent lower in futures at 103.35, whereas the value of one dollar hovered near Rs 82.50.
Gold
Gold prices climbed 1 percent on Thursday after data showed U.S. weekly jobless claims surged last week, cementing expectations that the Federal Reserve will pause its interest rate hiking cycle. Spot gold rose 1.4 percent to $1,967.16 per ounce.
US gold futures gained 1.2 percent to $1,982.4.
FII and DII
Foreign institutional investors (FIIs) bought shares worth Rs 212.40 crore, whereas domestic institutional investors (DIIs) sold shares worth Rs 405.01 crore on June 8, provisional data from the National Stock Exchange shows.
ByMoneycontrol
