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Market Movers: What changed for D-Street while you were sleeping

Let us check out the factors which may bring action to the domestic market on Monday.

Last Updated: May 27, 2019, 08.08 AM IST
NEW DELHI: Muted gains in Asian stocks and Nifty futures trading in Singapore are hinting at a weak start for the domestic market on Monday, but market participants in an ET poll saw 5-10 per cent potential upside for the domestic indices by the Union Budget due in July.

Let us check out the factors which may bring action to the domestic market on Monday.


Singapore trading sets stage for negative start
Nifty futures on the Singapore Exchange were trading 32.50 points, or 0.27 per cent, lower at 11,845, indicating a negative start for the Nifty50.

Tech view: Nifty forms Inside Bar candle
On Friday, the index rose 187 points, or 1.6 per cent, to 11,844. The Fibonacci retracement reveals the pullback fell short of the 61.8 per cent retracement mark, said Gaurav Ratnaparkhi of Sharekhan. “The Golden Ratio level, which is at 11,878 in this case, shows a high probability of the next downward leg,” Ratnaparkhi said.

Asian shares edge higher
MSCI's broadest index of Asia-Pacific shares outside Japan added 0.1 per cent. Gains were limited by persistent concerns that the China-US trade conflict was fast turning into a technology cold war between the world's two largest economies. Japan's Nikkei climbed 0.2 per cent.

US stocks settled higher on Friday
Dow Jones Industrial Average rose 95.22 points, or 0.37 per cent, to 25,585.69, the S&P500 index gained 3.82 points, or 0.14 per cent, to 2,826.06 and the Nasdaq Composite added 8.73 points, or 0.11 per cent, to 7,637.01.

Oil prices jump 0.6%, still below $70 a barrel
Oil prices rose on Monday as ongoing supply cuts led by producer club OPEC kept markets relatively tight, but Brent remained below $70 per barrel on concerns over an ongoing trade US-China war. Front-month Brent crude futures stood at $69.10 per barrel, up 41 cents, or 0.6 per cent.

5-10% gains likely by Union Budget: ET poll
The majority of participants in an ET poll of 31 money managers, heads of research and market strategists said the Nifty could gain 5-10% in the runup to the Union Budget in July.

Rupee likely to trade in 66-75 range by December
The rupee is expected to trade in a wide range of 66-75 to a dollar till December end, showed an ET survey that polled 24 market participants. The local unit could either strengthen up to 5% or lose more than 7% if global growth shrinks in the aftermath of tariff wars involving the world’s two biggest economies.

FIIs buy Rs 2,026 cr worth equities
Foreign portfolio investors (FPIs) bought Rs 2,026 crore worth of domestic stocks on Friday, data available with NSE suggested. DIIs were net sellers to the tune of Rs 195.35 crore, data suggested.


  • Rupee up: The Indian rupee strengthened on Friday and is set for its first weekly gain in three after Prime Minister Narendra Modi's ruling coalition scored a massive election win and supported by a decline in the crude oil price. The rupee gained as much as 0.4 per cent to touch a session high of 69.74 against the dollar.

  • 10-yr bond yields: India 10-year bond yields fell 0.17% to 7.22% on Friday against 7.39% in the previous session, according to RBI data.

  • Call rates: The overnight call money rate weighted average was 5.90% on Friday, according to RBI data. It moved in a range of 4.50-6.05%.


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European Parliamentary elections conclude
The elections concluded on Sunday. Estimates showed that the two largest centrist groups - EPP to the right and the S&D on the left - will no longer hold a majority in the new 751-seat chamber. Analysts told Reuters that the euro’s muted reaction to the preliminary vote outcome showed populist and far-right parties in some countries were unlikely to have gathered as much support as anticipated.

China regulator warns against yuan shorting
The US escalation of trade tensions won’t solve any of its problems but will create volatility in global markets and hurt the world economy, according to China’s top financial regulator, Guo Shuqing. His speech warned speculators that shorting the yuan would cause them to suffer great losses.

India to regain lost position in next 5 yrs
Prime Minister Narendra Modi Sunday said the next five years will be the time to regain the rightful position of India in the world order. He was speaking here at a function following the Lok Sabha election victory. "Next five years will be very important in the history of the country, as was the period between 1942 to 1947," Modi said addressing a huge gathering.

CSO, NSSO to be merged to create new stats body
The government has approved the merger of National Sample Survey Office (NSSO) with the Central Statistics Office (CSO) under the Ministry of Statistics and Programme Implementation (MoSPI). The policy suggests discontinuing with the role of the Chief Statistician of India as secretary to the National Statistical Commission (NSC) and merging CSO and NSSO under a single entity called the National Statistical Organisation (NSO).

FinMin to launch ETF with bank stocks, FIs this fiscal
The Finance Ministry is planning to launch an exchange traded fund (ETF) consisting of stocks of PSU banks and financial institutions this fiscal and will soon appoint an advisor to explore its feasibility, according to an official. The government currently has two exchange-traded funds -- CPSE ETF and Bharat-22 ETF -- listed on domestic exchanges. The plan to launch a bank ETF comes on the back of the government seeing huge investor demand for two existing ETFs.

China's industrial profits down 3.7% in April
Profits earned by China’s industrial companies contracted in April after a sharp rebound in the previous month, adding to concerns about the already slowing economy in the wake of a recent escalation in Sino-US trade tensions. Profits in April dropped 3.7% year-on-year to 515.4 billion yuan ($74.80 billion), the National Bureau of Statistics said on its website on Monday, compared with a 13.9% surge in March.

Gas-based plants, EV infra on priority list
Revival of gas-based power plants and putting up electric vehicle infrastructure are expected to be on the priority list of the new NDA government. The power ministry is expected to approach the union cabinet to get approval in the next 100 days for a subsidy mechanism to revive gas-based power projects, reports ET. The government will also target to set up public charging stations for electric vehicles in Delhi, Gurgaon, Bengaluru and Hyderabad.

Fiscal deficit may see upward revision in Budget
The upcoming Budget in July may revise the fiscal deficit of 3.4% upwards in view of the need to step up public expenditure to beat the economic slowdown while keeping in mind tax revenue are not going to grow at the required pace to match up with increased expenditure, reports IANS. Fiscal deficit for 2018-19 is also pegged at 3.4 per cent and the final yearly figure is awaited.
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