Indian indices on Monday witnessed a positive start amid strong Asian trends. Stocks extended a climb on Monday though questions remain about how long the equity bear market can be kept at bay amid high inflation, monetary tightening and the risk of a recession. Shares rose in Japan, Australia, Shanghai, Hong Kong and South Korea.
Oil extends gains ahead of G7 discussions on Russian exports
Oil prices extended gains on Monday as investors stood on guard for any moves against Russian oil and gas exports that might come out of a meeting of leaders of the Group of Seven (G7) nations meeting in Germany.
The prospect of more supply tightness loomed over the market as western governments sought ways to cut Russia’s ability to fund its war in Ukraine, even though G7 leaders were also expected discuss a revival of the Iran nuclear deal – which might lead to more Iranian oil exports.
Producer nations in OPEC+, which includes Russia, will likely stick to a plan for accelerated oil output increases in August when they meet on Thursday, sources said.
But, for now, the pressing supply worries outweighed growing concerns over the potential for a global recession following a string of downbeat U.S. economic data.
Brent crude futures edged up 22 cents, or 0.2%, to $113.34 a barrel by 0342 GMT after rebounding 2.8% on Friday. U.S. West Texas Intermediate crude was at $107.73 a barrel, up 11 cents, or 0.1%, following a 3.2% gain in the previous session.
London copper gains as China’s easing COVID curbs lift demand hopes
London copper prices gained on Monday as the easing of COVID-19 restrictions in top metals consumer China raised hopes of a revival in demand, although fears of a global economic slowdown due to rapid interest rate hikes limited gains. Three-month copper on the London Metal Exchange was up 0.5% at $8,420 a tonne, as of 0441 GMT, after dropping to its lowest since February 2021 at $8,122.50 in the previous session.
Top Sensex gainers in early trade
Goldman Sees Emerging-Asia Currencies Coming Under More Pressure
High-yielding emerging-Asia currencies may continue to reel amid deteriorating external finances and risk-off sentiment spurred by Federal Reserve tightening, according to strategists at Goldman Sachs Group Inc.
“Along with the broader emerging market currency complex, high-yielding currencies like the Philippine peso, Indian rupee and Indonesian rupiah have been under pressure in June,” strategists including Zach Pandl and Danny Suwanapruti wrote in a research note. “In coming weeks, we expect this pressure to continue versus the dollar, in some cases potentially posing upside risks to our dollar-cross forecasts.”
Emerging-Asia currencies are facing the heat as the Fed’s campaign to curb inflation boosts the dollar while central banks in much of Asia adopt a more patient stance. India’s rupee declined to an all-time low last week, while the Philippine peso slumped to its weakest level in more than 16 years.
Goldman’s views on India rupee
The rupee, which tested a series of record lows in recent weeks, may continue to remain under pressure against the dollar amid expectations of a $40 billion balance of payments deficit this year, compared with a surplus of $55 billion in 2021. The rupee typically depreciates when faced with balance of payments deficits, and therefore Goldman expects that upward pressure on dollar-rupee may persist in coming months.
What Zomato’s acquisition of Blinkit means for the stock? Should you buy?
Online food delivery platform Zomato Ltd announced that it has agreed to acquire Blink Commerce Pvt Ltd (formerly known as Grofers), where it already owns an 8-9% stake, for ₹4,447 crore in a share swap deal as part of its strategy of investing in quick commerce business.
Rupee gains 6 paise against US dollar in early trade
The rupee appreciated 6 paise to 78.27 against the US dollar in opening trade on Monday as heavy buying in domestic equities and weakness in the greenback strengthened investor sentiment.
However, elevated crude prices and persistent foreign fund outflows restricted the rupee’s gain, forex dealers said.
At the interbank foreign exchange, the rupee opened sharply up at 78.24 against the US dollar, then inched lower to quote 78.27, registering a gain of 6 paise over the last close.
In the previous session, the rupee had closed at its all-time low of 78.33 against the US dollar.
Markets maintain winning run to 3rd day amid firm trends in global markets
Equity benchmark indices continued to gain for the third day running on Monday, with the BSE Sensex climbing 781 points in early trade, amid firm global market trends.
The 30-share BSE Sensex was trading with a jump of 781.52 points to 53,509.50. The NSE Nifty also gained 228.2 points to 15,927.45.
All the Sensex pack of firms were trading in the green in early trade, with Tech Mahindra, HCL Technologies, Wipro, Infosys, Bajaj Finance and Larsen & Toubro emerging as the biggest gainers.
Elsewhere in Asia, markets in Seoul, Tokyo, Shanghai and Hong Kong were trading with gains in mid-session deals.
The US markets had ended with sharp gains on Friday.
Bajaj Auto’s share buyback decision to be taken in board meet today
Homegrown Bajaj Auto’s board will meet on Monday, June 27, 2022 to further deliberate on the proposal for buyback of fully paid-up equity shares of the company. The auto major’s board earlier this month had deferred a decision on its proposed share buyback, after informing the stock exchanges on June 9 that its board would consider a proposal for buyback of fully paid-up equity shares at a meeting to be held on Tuesday, June 14.
BSE indices trade in the green in early trade
PVR among 4 weekly stock picks from Axis Securities, with potential upside of 12%
Eicher Motors Limited, Sunteck Realty Limited, Shriram Transport Finance Company and PVR Limited are the top technical stock picks on a weekly basis from Axis Securities. Eicher Motors Limited has a buy at range ₹2850 – 2794, Sunteck Realty Limited has a buy at range ₹480 – 472, Shriram Transport Finance Company Limited has a buy at range 1235 – 1211 and PVR Limited has a buy at range 1840 – 1804, Axis Securities said in a report. The brokerage suggests a holding period or 3 to 4 weeks for these four stocks.
Bitcoin, ether, other cryptocurrency prices today fall; dogecoin surges 10%
Cryptocurrency prices today plunged after ether and Bitcoin reached their highest levels in 10 days on Sunday as the market showed some signs of stabilization. The world’s largest and most popular cryptocurrency plunged a per cent and was trading at $21,115. The global cryptocurrency market cap today was below the $1 trillion, and was down over a per cent in the last 24 hours to $993 billion, as per CoinGecko.
Nifty50 rises above 15,850; TechM, Wipro, Tata Motors top gainers
Sensex opens around 600 points higher amid positive Asian trends
Nifty50 at pre-open: Trades above 15,900; Hindalco, ICICI Bank top gainers
Sensex at pre-open: Gains close to 750 points; All 30 stocks in the green
FPIs’ exodus…
Read More: Market Live: Sensex jumps 650 pts, Nifty around 15,900; TechM, HCL, Infy shine