Markets

ETMarkets Morning Podcast: Market moving triggers and key trading ideas

Hey there! Good Morning. This is Saloni Goel from ETMarkets.com with the morning briefing of news, views and cues you need to know before you start the day on Dalal Street.

While the domestic market appeared to be consolidating with a positive bias over the past two sessions, analysts say it looked a bit overstretched and some minor corrective activity can be expected. Should that take place, expect the market witness some rangebound correction.
With cues from quarterly earnings drying up, Dalal Street seems to be looking at macro cues for further direction of the market. Domestic GDP data coming out at the end of the day and Chinese PMI readings released this morning may sway investor sentiments.
Remember, US stocks slipped in overnight trade. The Dow Jones Industrial Average declined some 50 points to 21,029, while the S&P500 closed flat at 2,412 and the Nasdaq lost 7 points to 6,203.
As if on cue, Asian stocks had a rather cautious start this morning, even as the pound sterling stumbled as a new poll found British Prime Minister Theresa May’s Conservative Party to be at risk of falling short of an overall majority in next month’s national election. MSCI’s broadest index of Asia-Pacific shares outside Japan traded flat. Early trade in Australia and Japan was mixed.

On Dalal Street, the bulls dominated proceedings on Tuesday, pushing the benchmark indices to fresh record closing highs for the fourth day in a row. Although the market was in a consolidation mode for most part of the session, the arrival of monsoon and optimism over GST implementation kept investor sentiment upbeat. The S&P BSE Sensex rose 50 points to hit at a fresh lifetime high of 31,159, with Adani Ports being the top gainer. The broader Nifty50 of the National Stock Exchange ended at a fresh record high of 9,625, with 34 constituents ending in the green.
On the technical charts, the Nifty50 formed a small bullish pattern on Tuesday. Analysts said the 9,700 level on the index still looks possible in the short term, as long as the immediate support at the 9,600 level remains intact.
Early this morning, Nifty50 futures on the Singapore Stock Exchange were trading 1 points, or 0.01 per cent, higher at 9,621, indicating a flat opening for the domestic market.
The rupee weakened by 16 paise on Tuesday to close at 64.66 to the dollar on sustained demand for the greenback from banks and importers. Fresh capital outflows against the backdrop of volatile global situation coupled with Fed rate hike fears added to the pressure on the domestic currency.
In other news,
Southwest monsoon hit the Kerala coast on the expected date on Tuesday, and advanced into some parts of Northeast India. Widespread rainfall in the past 48 hours along with a cloud cover since May 27 formed favourable conditions for the onset of monsoon in the southern region.

In quarterly earnings, Castrol India, Orient Tradelink, Trishakti Electronics , Sujala Trading & Holdings, Raghav Ramming Mass and Shalibhadra Finance are among the BSE-listed companies scheduled to report quarterly earnings on Wednesday.
In global markets, crude oil prices fell about 1 per cent on Tuesday, on signs of resurgent crude output in Libya and concerns that extended production cuts by leading exporting countries may not be enough to drain a global glut that has depressed prices for almost three years. Brent crude ended the session 45 cents, or 0.9 per cent, lower at $ 51.84 a barrel, while US light crude fell 14 cents, or 0.3 per cent, to $ 49.66.
Lastly, a quick look at some of the interesting headlines from the print edition of ETMarkets.

Fund managers are increasing their bets on banks with a bulky corporate lending book that have been largely ignored because of bad loan worries. Equity schemes of top mutual funds lapped up shares of select private and public sector lenders in April as banks with strength in retail lending are considered expensive after their recent run-up.
Moody’s Investors Service and local ratings firms ICRA and CARE downgraded Reliance Communications on Tuesday , a day when the telecom operator’s shares hit an all-time low as concerns grew over its mountain of debt.
Beleaguered bankers on Tuesday demanded that the Reserve Bank of India ease conditions on loans that would qualify for restructuring under the so-called S4A scheme and permit them to spread the losses arising out of such a deal over many quarters, said two people familiar with the matter.

We would leave you with that much for now.

Do log on to www.etmarkets.com through the day for continuous updates on every development in the financial markets.

Have a good trading day ahead!

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Markets-The Economic Times

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