Wednesday, July 5, 2017

Morning Cues for Indian stock Markets July 6th 2017

FII DII Activity

FII DII both positive on Indian markets.

There was buying seen by both FII and DII in all segments.

US market Data

US markets were positive to flat 

SGX Nifty

At the time of writing this article the SGX Nifty was down around 4 points indicating flat to minor negative opening.

Business News

The Nifty is likely to open flat on Thursday, tracking muted handover from Wall Street. The Nifty closed 24 points higher at 9,637 on Wednesday.
The index formed an Inside Bar pattern on the daily candlestick charts which suggest consolidation is likely to continue.
The index is consolidating in a narrow range and as long as Nifty holds above 9,550-9600 upside trend still remains intact. Investors are advised to stay long on the index a fresh move will come in once Nifty breaks past 9,650 on a closing basis, suggest
The possibility of the index going higher is much more than it going lower. It has finally given the highest daily close in last ten trading sessions and a decisive move above 9650 could attract fresh buying interest.
Wall Street closes little changed
US stocks ended mixed as a steep drop in oil prices dragged energy shares lower and kept the Dow and S&P 500 in check. Crude prices settled about 4 percent lower.
On the macroeconomic front, new orders for US-made goods fell more than expected in May, data showed on Wednesday, but capital equipment orders were slightly stronger than previously reported, said a Reuters report.
The Dow Jones Industrial Average fell 1.1 points, or 0.01 percent, to close at 21,478.17, the S&P 500 gained 3.53 points, or 0.15 percent, to 2,432.54 and the Nasdaq Composite added 40.80 points, or 0.67 percent, to 6,150.86.
SGX Nifty
The Nifty futures on the Singapore Stock Exchange were trading 3 points lower at 9,651 indicating a flat opening for the domestic market.
Oil slides as OPEC exports rise
Oil prices tumbled about 4 percent on Wednesday, ending their longest string of daily gains in more than five years, as climbing OPEC exports and a stronger dollar spurred selling, said a Reuters report.
Brent crude futures settled down $1.82, or 3.7 percent, at $47.79 a barrel. Prices had climbed for eight straight sessions to Monday. US West Texas Intermediate crude fell $1.94, or 4.12 percent, to settle at $45.13 a barrel, it said.
Fed split on the outlook for inflation
The US Federal Reserve policymakers were increasingly split on the outlook for inflation and how it might affect the future pace of interest rate rises, according to the minutes of the Fed's last policy meeting on June 13-14 released on Wednesday, said a Reuters report.
The details of the meeting also showed that several officials wanted to announce a start to reduce the balance sheet by the end of August but others wanted to wait until later in the year.
Dollar index flat as Fed minutes hint tensions
The US dollar was little changed against a basket of currencies as the Federal Reserve's minutes of its June 13-14 policy meeting showed a rift among policy-makers over the pace of future U.S. rate increases with signs of inflation softening, said a Reuters report.
The dollar index was flat at 96.237 after touching a one-week high. In the second quarter, this gauge tracking the greenback against six currencies fell 4.71 percent, its biggest quarterly drop since the third quarter of 2010.
MSEI defers plans to extend trading hours
The country's markets regulator is open to the idea of the Metropolitan Stock Exchange of India (MSEI) extending its trading hours but wants a proper structure in place and has asked the exchange to first comply with clearing corporation norms.
The regulator told MSEI that in 2009, it had allowed extended hours for equity cash and equity derivatives. MSEI, however, is only allowed in the cash segment. It has now laid conditions before MSEI for extending its trading hours including thoroughly checking the IT, trading and risk management structures.
Paul Krugman blames note-ban for India's tepid growth
Blaming the Modi government's note-ban, a hawkish monetary policy of RBI and a strong rupee for the tepid growth, Nobel-winning economist Paul Krugman on Wednesday said the 6 percent GDP expansion is "disappointing" for a country like India.
The noted American economist also questioned whether the favourable demographics which makes the country with the highest working age population in the world would aid economic growth at all.
RIL surpasses TCS to become most valued Indian firm
Reliance Industries Ltd (RIL) today toppled Tata Consultancy Services (TCS) to become the country's most valued firm in terms of market capitalisation after a week.
At close of trade today, the market capitalisation (m- cap) of RIL stood at Rs 4,68,160.44 crore - Rs 3,582.79 crore more than TCS's Rs 4,64,577.65 crore valuation.
(Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.)
Rupee closes marginally weaker
The Indian rupee closed marginally weaker against the US dollar ahead of US Federal Reserve minutes from its June meeting.
The rupee opened at 64.72 a dollar and touched a high and a low of 64.67 and 64.87 respectively. The rupee closed at 64.78 a dollar, down 0.08 percent from its Tuesdays close of 64.74.
4 stocks under ban period on NSE
Security in ban period for the next trade date under the F&O segment includes companies in which the security has crossed 95% of the market-wide position limit.
Securities which are banned for trading today include names like Indiabulls Real Estate, Jaiprakash Associates, JSW Energy, and Ujjivan.
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