Things to know before trading on 10th June


It has been a mixed sentiment for the Indian equity market in the past week. The indices failed to maintain its new high formed in the same week. Nifty fell sharp on June 6th by 1.48% though the index managed to close with a slight gain of 26 point on Friday after a range bound trade. Banking, IT and Financial service sector closed positive on Friday whereas Pharma sector fell more than a percent. RBI’s 25 basis point rate cut has been no surprise for the market as market has already discounted the same and had more expectations.

Annual monsoon has officially arrived at kerela coast after a delay of over a week. Equity market reacts to monsoon as deficient rainfall results in a dip in the equity market while normal rainfall can result in some gains As monsoon rain are critical for the farm sector. As per India Meteorological Department (IMD) monsoon is projected to be average.

US stocks finishes higher at the end of the week on hopes of US and Mexico to work out on trade deal. The US Non Farm payroll slowed down as per data released on Friday with a possibility of a cut in US interest rate.

  • US Dow Jones Industrial Average rose 263 points or 1.02% to 25,983.94 and the Nasdaq Composite also added 126 points.
  • Donald Trump says tariffs on Mexico have been suspended after agreement reached on migration.
  • US Treasury Secretary Steven Mnuchin stated that the economic growth of US, China and Europe may get boost if US and China comes on a deal at the G20 summit meet later this month.

Asian stocks mostly traded higher on Friday on investors optimism about a possible deal between the US and Mexico. Japan’s Nikkei gained 0.53% while Hong Kong’s Hang seng index rose 0.26%.Today the Asian market opened with a strong note following global cues.

Related post

Indian and Global market at a glance

US- China working on a “Phase 1” trade deal

Positive news from the Brexit front boost the Global and…

  • Nikkei opened with a positive note currently 226 points up or 1.09%.
  • Hang Seng is currently up more than 500 points or 2%
  • SGX Nifty opens with positive note indicating a start of the local market.

Important data to be released:

  • Indian Retail and Wholesale inflation for the month of May will be released on Wednesday and Friday by RBI.
  • Indian YoY industrial and manufacturing production data will be released on Wednesday.
  • US inflation rate for the month of May to be released on Wednesday.
  • India’s Balance of trade and Foreign exchange Reserves data will be released on Friday.

In commodities market, Crude oil is currently trading at $54.31/bbl, recovering from its recent fall past few days. Brent crude futures is trading at $63.55/bbl.

Disclaimer: represents Bitupan Majumdar which is an independent research analyst with SEBI RA registration code INH300006962. The report is distributed as per SEBI (Research Analysts) Regulations 2014. This report does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 includes Financial Instruments and Currency Derivatives. The information contained herein is from publicly available data or other sources believed to be reliable. This report is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this report should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in Securities referred to in this document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors. This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose.


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