Opening Bell:
SGX Nifty is down by 78.0 points in the early morning trade, indicating a negative opening for Indian stock market.
Asia-Pacific markets traded mixed Tuesday as investors closely watched China’s loan prime rate decision after its central bank cut some of its key lending rates last week. Markets are widely expecting cuts to its 1-year and 5-year loan prime rates, with economists polled by Reuters expecting a 10-basis point cut and a 15-basis point cut, respectively. In Australia, the S&P/ASX 200 climbed 0.24%, extending gains from Monday and ahead of the Reserve Bank of Australia’s minutes for its June meeting, slated to be out later today. In Japan, the Nikkei 225 is set to continue retreating from its 33-year highs as the index fell 0.45%, while the Topix lost 0.58%. South Korea’s Kospi also continued its slide from Monday, falling 0.35%, along with the Kosdaq which saw a 0.37 loss.
Stock futures ticked lower on Monday evening as investors looked ahead to a holiday-shortened week of trading. Futures tied to the Dow Jones Industrial Average slipped 93 points, or 0.3 %, while S&P 500 futures pulled back 0.2 %. Nasdaq 100 futures declined 0.18 %.
Stocks News:
👉IIFL Securities: The Sebi has banned brokerage IIFL Securities from onboarding new clients, in the stock broking operations, for two years. As per Sebi order, IIFL has mixed clients’ funds with proprietary funds, used credit-balance client accounts to settle obligations of debit-balance client accounts, and used credit-balance client accounts to settle proprietary-trade obligations.
👉HDFC Asset Management Company: Abrdn Investment Management (formerly Standard Life Investments) is expected to exit HDFC AMC by selling entire 2.18 crore equity shares or 10.2% stake via block deals on June 20. The selling price is likely in the range of Rs 1,800-1,892.45 per share, a 0.0-4.9 percent discount to closing price of June 19. BofA Securities is the sole bookrunner for the transaction.
👉Indigo, India’s largest airline by market share, on June 19 placed an order for 500 Airbus A320 Family aircraft in the largest purchase agreement in aviation history. The deal is worth $50 billion at list prices and the airline will take delivery of these new aircraft between 2030 and 2035. However, the actual cost of acquisition is expected to be significantly lower as such big deals happen at a substantial discount to list prices.
👉Vedanta Ltd plans to invest USD 1.7 billion in the current financial year to expand the capacities of its various business operations, its Chairman Anil Agarwal has said. It has already invested USD 1.2 billion in the form of growth capex in FY2023 to augment its assets and production, he said in the company’s Annual Report for financial 2022-23.
👉Foreign institutional investors (FII) sold shares worth Rs 1,030.90 crore, while domestic institutional investors (DII) offloaded shares worth Rs 365.20 crore on June 19, provisional data from the National Stock Exchange shows.
Domestic and International Events
- The real GDP growth for the first quarter of FY24 will come at 8.1% with an upward bias and the Reserve Bank of India’s 6.5% estimate can also be exceeded, economists at the country’s largest lender SBI said. “We expect Q1 FY24 GDP growth at 8.1% with an upward bias due to the impact of ₹2,000 note withdrawal event. this reinforces our projection that FY24 GDP could be higher than 6.5%, basis the RBI estimate,” a note said.
- Indian Prime Minister Narendra Modi’s visit to the US is expected to boost the Indo-US technology partnership by announcing major developments in the establishment of a new semiconductor supply chain. Meetings with top 20 US companies’ CEOs, including Mastercard, Accenture, Adobe, Coca-Cola and Visa, have also been scheduled.
- Global oil prices fell more than $1 on Monday, backing off last week’s gains, as questions over China’s economy outweighed OPEC+ output cuts and the seventh straight drop in the number of oil and gas rigs operating in the United States. Brent crude lost $1.15, or 1.5 percent, to trade at $75.46 a barrel by 0350 GMT, while U.S. West Texas Intermediate (WTI) crude was down $1.09, or 1.5 percent, to $70.69. Last week, Brent posted a gain of 2.4 percent and WTI rose 2.3 percent.
- Gold prices ticked down in light trade on Monday, pressured by a stronger dollar, as investors assessed the path ahead for interest rates following hawkish remarks from U.S. Federal Reserve policymakers. Spot gold fell 0.1 percent to $1,955.79 per ounce by 0433 GMT. U.S. gold futures were down 0.2 percent to $1,967.20.
Key Equity Indices
| EMERGING | LATEST | % 1D |
| Hang Seng | 19,913 | (0.6) % |
| Shanghai Composite | 3,256 | (0.5) % |
| DEVELOPED | LATEST | % 1D |
| Dow Jones | 34,299 | (0.3) % |
| DAX | 16,201 | (1.0) % |
| FTSE 100 | 7,588 | (0.7) % |
| Nikkei | 33,370 | (1.0) % |
| Straits Times | 3,241 | (0.6) % |
