Opening Bell:
SGX Nifty is up by 52.5 points in the early morning trade, indicating a positive opening for Indian stock market.
Asia-Pacific markets rose as the region awaits May inflation figures out of Australia and China releases its industrial profits for May. In Australia, the S&P/ASX 200 climbed 0.71% in early trade. Economists polled by Reuters expect the country’s inflation rate to ease to 6.1%, compared with the 6.8% recorded in April. In Japan, the Nikkei 225 rebounded after three straight days of losses, popping 1%, with the Topix also surging 0.9%. South Korea’s Kospi traded close to the flatline, while the Kosdaq saw a 0.27% gain. Hong Kong’s Hang Seng index also is poised to extend its gains after climbing almost 2% on Tuesday, with futures at 19,185 compared to the HSI’s close of 19,148.13.
US S&P 500 futures inched lower on Tuesday night. S&P 500 futures and Nasdaq 100 futures dipped 0.19% and 0.39%. Dow Jones Industrial Average futures were little changed. During Tuesday’s trading, the Dow Jones Industrial Average posted its first positive session in seven, with the index closing 0.63% higher. Meanwhile, the S&P 500 and the Nasdaq Composite jumped more than 1% each, buoyed by a resurgence in tech stocks after last week’s selloff.
Stocks News:
👉Infosys: The country’s second largest IT services provider has signed an agreement with Skillsoft, a transformative learning experiences provider, to revamp education and learning for students from class 6 to lifelong learners in India. Infosys will provide learners, free of cost, access to a rich repository of Skillsoft learning content designed to build technology, leadership and business, and behavioral skills through Infosys Springboard.
👉Housing Development Finance Corporation: HDFC and HDFC Bank are working towards completing all the necessary formalities for completion of the proposed amalgamation. The effective merger date of July 1 and record date of July 13 are tentative and are subject to completion of certain formalities. Once the board members of HDFC and HDFC Bank decide on the effective date of the scheme as well as record date, the same would be intimated to stock exchanges.
👉State Bank of India: The bank has received approval from its Executive Committee of the Central Board for acquiring entire stake held by SBI Capital Markets in SBI Pension Funds, subject to receipt of regulatory approvals.
👉Gland Pharma: The United States Food and Drug Administration (US FDA) has issued Form 483 with one observation to the company’s Pashamylaram facility in Hyderabad. This observation is procedural in nature. The US FDA has conducted pre-approval inspection (PAI) for company’s 7 products and good manufacturing practice (GMP) inspection at Pashamylaram facility in Hyderabad between June 15 and June 27, 2023.
👉Foreign institutional investors (FII) bought shares worth Rs 2,024.05 crore, whereas domestic institutional investors (DII) sold shares worth Rs 1,991.35 crore on June 27, provisional data from the National Stock Exchange shows.
Domestic and International Events
- India’s current account deficit narrowed sharply in the January to March quarter, mainly on the back of a moderation in the trade gap and an increase in services exports. Reserve Bank of India data showed on Wednesday. The current account balance saw a deficit of 2 per cent of GDP in FY23, as opposed to a deficit of 1.2 per cent in FY22 as the trade deficit widened to $265.3 billion from $189.5 billion a year ago.
- The United States is considering new restrictions on exports of artificial intelligence chips to China, the Wall Street Journal reported on Tuesday, citing people familiar with the matter. Shares of Nvidia fell more than 2 percent, while Advanced Micro Devices (AMD) fell about 1.5 percent on the news in extended trading. The US commerce department will stop the shipments of chips made by Nvidia and other chip companies to customers in China as early as July, the report said. Nvidia, Micron, and AMD are among the U.S. chipmakers caught in the crossfire between China and the Biden administration.
- Oil prices slumped over 2 percent on Tuesday on signals that central banks may not be done with interest rate hikes, while investors awaited data that could shed light on U.S. fuel consumption during the peak summer driving season. Brent crude futures settled down $1.92, or 2.6 percent, at $72.26 a barrel. US West Texas Intermediate (WTI) futures dropped $1.67, or 2.4 percent, to $67.70.
- Gold reversed course to slip on Tuesday after strong U.S. economic readings, while traders positioned for Federal Reserve Chair Jerome Powell’s speech and more data that could offer clues on future interest rate hikes. Spot gold fell 0.6 percent to $1,911.53 per ounce, while U.S. gold futures settled 0.5 percent lower at $1,923.80.
Key Equity Indices
| EMERGING | LATEST | % 1D |
| Hang Seng | 19,148 | 1.9 % |
| Shanghai Composite | 3,189 | 1.2 % |
| DEVELOPED | LATEST | % 1D |
| Dow Jones | 33,927 | 0.6 % |
| DAX | 15,847 | 0.2 % |
| FTSE 100 | 7,461 | 0.1 % |
| Nikkei | 32,538 | (0.5) % |
| Straits Times | 3,205 | 0.5 % |
