Markets could open flat following a great run over the last four days - HDFC Securities
Indian markets could open flat today despite higher Asian markets today and mildly higher US indices on Monday.
U.S. stocks posted gains on Monday as signs of U.S. economic recovery helped offset jitters over increasingly violent social unrest amid an ongoing pandemic and rising U.S.-China tensions. Investors also monitored Sino-American trade tensions and efforts in the U.S., and much of the world, to overcome the COVID-19 pandemic.
The Institute for Supply Management said its manufacturing index climbed to 43.1 last month from an 11-year low of 41.5 in April.
On the international front, Chinese government officials told major state-run agricultural companies to pause purchases of some American farm goods, including pork and soybeans, Reuters and Bloomberg News reported on Monday, citing people familiar with the matter.
Moody’s Investors Service downgraded India’s credit rating to a notch above junk on Monday, citing a prolonged period of slow growth in Asia’s third-largest economy, rising debt and persistent stress in parts of the financial system. The change brings Moody’s rating into line with Fitch and Standard and Poor’s, both of which rate India BBB-, although they assign stable rather than negative outlooks.
The decision and announcements made by the Union Cabinet on June 01 focused on measures for micro, small and enterprises (MSMEs), farmers and street vendors. This was mainly a follow through of the stimulus measures announced about two weeks back. Apart from specific announcements as a relief to MSMEs, it also talks about hiking MSP for 14 kharif crops by a large margin and extending time period for farmers in repaying their loans. The Govt continues to act to tackle the situation arising out of Covid-19.
Stocks in Asia Pacific were mixed in Tuesday morning trade as tensions between the U.S. and China continue to linger.
Indian equities continued the rally on the fourth straight day on June 1 after government relaxed some lockdown norms to revive the economy. At close, the Nifty was up 245.85 points or 2.57% at 9826.15.
Technically, Nifty has filled the downgap of 9731 made on May 04 and in the process has formed a bullish island reversal. 9889- 9932 could be the resistance for the Nifty while 9584-9598 could be the support in the near term.
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