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.
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.
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