The Indian stock market is expected to open in the red as trends on SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 256 points.
The BSE Sensex rose 33 points to 55,702, while the Nifty50 fell from 16,950 levels to close with 5 points gains at 16,683 and formed bearish candle on the daily charts.
As per the pivot charts, the key support level for the Nifty is placed at 16,574, followed by 16,466. If the index moves up, the key resistance levels to watch out for are 16,868 and 17,054.
Stay tuned to Moneycontrol to find out what happens in the currency and equity markets today. We have collated a list of important headlines across news platforms which could impact Indian as well as international markets:
US Markets
US stocks ended on May 5 sharply lower amid a broad sell-off, as investor sentiment cratered in the face of concerns that the Federal Reserve's interest rate hike the previous day would not be enough to tame surging inflation.
All three main Wall Street benchmarks erased gains made during a relief rally on May 4, with the Nasdaq posting its biggest one-day percentage decline since June 2020 and its lowest finish since November 2020. The Dow's decline was its worst daily performance since October 2020.
The Dow Jones Industrial Average fell 1,063.09 points, or 3.12 percent, to 32,997.97, the S&P 500 lost 153.3 points, or 3.56 percent, to 4,146.87 and the Nasdaq Composite dropped 647.17 points, or 4.99 percent, to 12,317.69.
Asian Markets
Shares in Asia-Pacific largely declined in the May 6 morning trade after an overnight drop on Wall Street sent the Dow Jones Industrial Average to its worst day since 2020. Hong Kong’s Hang Seng index led losses regionally as it fell 2.45 percent. In mainland China, the Shanghai Composite slipped 1.41% while the Shenzhen Component shed 1.728 percent.
In Japan, the Nikkei 225 dipped 0.13 percent. The Topix index traded 0.34 percent higher. Japanese stocks returned to trade on May 6 after being closed for holidays much of this week.
SGX Nifty
Trends on SGX Nifty indicate a gap-down opening for the broader index in India with a loss of 256 points. The Nifty futures were trading around 16,435 levels on the Singaporean exchange.
Oil falls as demand concerns weigh against tight supply
Oil prices dipped at the start of Asian trade on May 6 as worries about an economic downturn that could dampen demand for crude vied with concerns over new sanctions from the European Union against Russia, including an embargo on crude oil.
Brent futures fell 37 cents, or 0.3 percent, to $110.53 a barrel by 0015 GMT, while US West Texas Intermediate (WTI) crude fell 33 cents, or 0.3 percent, to $107.93 a barrel.
LIC IPO updates
On the second day of bidding, issue was subscribed 1.03 times, Policyholders 3.11 times, Staff 2.21 times, Retail 93 percent, QIB 40 percent & NII 47 percent. The government will be selling a 3.5 percent stake entirely through an offer for sale (OFS). Of which 10 percent of the shares are reserved for LIC policyholders and 0.7 percent for LIC employees. Also, 31.25 percent is reserved for household (retail) investors.
RBI MPC | Another 25 basis-point repo-rate hike likely in June: Experts
The Central-bank led Monetary Policy Committee’s (MPC) out-of-turn repo-rate hike signals policymakers’ urgency to tame rising price pressures and raises the probability of at least another 25 basis-point rate hike next month, economists and analysts told Moneycontrol on May 5.
The MPC, in a surprise move on May 4, hiked the repo rate by 40 basis points to 4.40 percent and increased the Cash Reserve Ratio (CRR) by 50 basis points on concerns over high inflation. A 100 basis point is equal to one percentage point.
BoE flags risk of recession and 10 percent inflation as it raises rates again
The Bank of England sent a stark warning that Britain risks a double-whammy of a recession and inflation above 10 percent as it raised interest rates on May 5 to their highest since 2009, hiking by quarter of a percentage point to 1 percent. The pound fell by more than a cent against the US dollar to hit its lowest level since mid-2020, below $1.24, as the gloominess of the BoE's new forecasts for the world's fifth-largest economy caught investors by surprise.
The BoE said it was also worried about the impact of renewed COVID-19 lockdowns in China which threaten to hit supply chains again and add to inflation pressures.
Results on May 6
Reliance Industries, Canara Bank, Sundaram-Clayton, Tata Power Company, CSB Bank, Federal Bank, Great Eastern Shipping Company, Bajaj Consumer Care, Apollo Pipes, Apollo Tricoat Tubes, Greenpanel Industries, Grindwell Norton, Hariom Pipe Industries, Kokuyo Camlin, Shipping Corporation of India, Paisalo Digital, Paushak, Reliance Home Finance, Vesuvius India, and Vikas EcoTech will release quarterly earnings on May 6.
FII and DII data
Foreign institutional investors (FIIs) have net offloaded shares worth Rs 2,074.74 crore, whereas domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,229.31 crore worth of shares on May 5, as per provisional data available on the NSE.
US weekly jobless claims rise; productivity plunges at fastest pace in 74 years
New claims for US unemployment benefits increased to a more than two-month high last week, but remained at a level consistent with tightening labor market conditions and further wage gains that could keep inflation hot for a while.
The report from the Labor Department on May 5 also showed the number of Americans collecting state unemployment checks was the smallest in more than 52 years towards the end of April. Economists brushed off last week's increase in initial claims, arguing that the data are volatile around moving holidays like Easter, Passover and school spring breaks.
Initial claims for state unemployment benefits rose 19,000 to a seasonally adjusted 200,000 for the week ended April 30, the highest since mid-February. Economists polled by Reuters had forecast 182,000 applications for the latest week.
[With inputs from agencies]Top 10 things to know before the market opens today - Moneycontrol
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