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What changed your markets while you were sleeping

Let’s check out what all might matter to Dalal Street all through Wednesday.

ETMarkets.com|
Updated: Jun 06, 2018, 08.46 AM IST
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Stock-market---TS
Nifty futures on the Singapore Stock Exchange were trading 21 points, or 0.20 per cent, lower at 10,586, indicating a flat start for the Nifty50.
With the RBI likely to turn hawkish in its policy review due later today, can domestic equity benchmarks reverse a three-day falling trend? Let’s check out what all might matter to Dalal Street all through Wednesday:

Singapore trading sets stage for negative start
Nifty futures on the Singapore Stock Exchange were trading 21 points, or 0.20 per cent, lower at 10,586, indicating a flat start for the Nifty50.

SGX-snip-6-june

Nifty50 forms Hammer-like pattern
The index formed a Hammer-like pattern on the daily chart and is expected to find support around the 10,550 level, failing which it may extend its downtrend towards the 10,400 level, given the prevailing weak market breadth. A short-term pullback cannot be ruled out on Wednesday, but the overall trend remains negative, analysts said.

India story finds few takers
India’s ‘beta’ — which measures how local indices would respond to the emerging market (EM) index — is at a 13-year low of 0.56 compared with the 18-year average of 0.69. This indicates Indian indices may trail the EM index if there’s an uptick. A low beta (computed by comparing prices in two markets over a period of time) could cause portfolio managers to review their fund allocation for India. Slow earnings growth in the past five years has largely contributed to a softening of the beta.

Asian shares gain in early trade
Asian stocks edged up on Wednesday after tech sector strength lifted Wall Street shares, while concerns about Italy’s debt prompted investors to move into lower-risk government debt elsewhere, pushing US Treasury yields down from recent highs, Reuters reported. MSCI's broadest index of Asia-Pacific shares outside Japan index rose 0.1 percent, while Japan's Nikkei index edged down 0.1 percent.

Crude prices inch lower
Brent crude futures were down 8 cents at $75.30 a barrel. The contract went as low as $73.81, the weakest since May 8, the previous day after a report that the U.S. government had asked Saudi Arabia and other major exporters to increase oil output, Reuters reported.

US stocks settled mixed
The Dow Jones Industrial Average index fell 13.71 points, or 0.06 percent, to 24,799.98, the S&P500 index rose 1.93 points, or 0.07 per cent, to 2,748.8 and the Nasdaq Composite added 31.40 points, or 0.41 percent, to 7,637.86, Reuters reported.

RBI policy outcome today
Although our base case assumes 25 bps hike in the upcoming policy, the MPC may decide to wait for clarity on certain key factors like the extent of MSP hikes and progress of monsoon, said ICICI Securities in a note. If the committee decides to hold rates this time, the chances of hike in August review are very high in our opinion, the brokerage said.

DIIs bought Rs 474 cr worth of equities
Foreign portfolio investors (FPIs) sold Rs 157.51 crore worth of domestic stocks on Tuesday, provisional data available with BSE suggested. DIIs were net buyers to the tune of Rs 474.33 crore, data suggested.

Rupee ends 4 paise lower
The rupee on Tuesday weakened further against the US dollar in choppy trade, falling by another 4 paise to end at 67.15 ahead of tomorrow’s RBI policy outcome. Trading was largely confined to a tight range for most part of the day with no directional strength and market moving factors.

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