IGI Logo

Indian markets could open flat, in line with mixed Asian markets today and US markets that were flat on Tuesday..…HDFC Securities

The Dow Jones Industrial Average closed slightly higher Tuesday in a mixed U.S. stock market, as optimism about economic recovery was undermined by doubts about inflation after a reading on U.S. manufacturing activity underlined labor shortages and supply bottlenecks.

Economic data revealed more signs of inflation. The Purchasing Managers Index for May rose to 62.1, topping estimates of 61.5 and the previous reading of 61.5. This could signify inflation, which investors are watching, as the Federal Reserve could soon lift bond yields, which erodes the present value of future cash flows and weighs on stocks valuations. The Institute for Supply Management’s manufacturing index rose to 61.2 in May, above estimates for 60.5 and the last result of 60.7. The price component was elevated, at a reading of 88.

Oil futures rose to the highest in more than two years, after as the OPEC+ alliance agreed to hike output in July and it reportedly forecast a 6 million barrel a day jump in world oil demand this year.

Shares in Asia-Pacific were mixed in Wednesday morning trade, with official data showing higher-than-expected growth in Australia’s economy for the first quarter. With 1.8% growth in the March quarter 2021, Australian economic activity has recovered to be above pre-pandemic levels and has grown 1.1% through the year.

Indian markets had a lackluster session on 1st June, Tuesday. At close, the Nifty was down 8 points at 15574.

The 75% peak trading margin norm by the Securities and Exchange Board came into effect from June 01. This is the third phase of implementing higher margin on day trading. It had its impact on volumes which were about 10% lower than recent averages. Overall declining stocks outnumbered advancing and broader markets were also subdued. 15700 is a key resistance for Nifty while support is at 15374.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer at https://www.hdfcsec.com/article/disclaimer-1795

SEBI Registration number is INZ000171337

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaimer