India faces ratings downgrade from Moodys
The mood of market would be sour Today as global rating agency Moody’s Investors Service downgraded India’s rating to Baa3 from Baa2 and changes its outlook to negative from stable. Hence, it is likely that Indian markets might open on a flat to soft note. Having said that, the government continues to act in combating the situations arising out of pandemic by announcing host of measures for MSMEs and street vendors. Further, the Union cabinet announced an increase of the MSP of 14 Kharif crops which might provide support to the stock markets after the initial bump which could be seen on back of downgrade by Moody’s.
At 7:57 AM, the SGX Nifty is trading at 9,805.50 down by 28.50 points.
On earnings front, key stocks such as Britannia, Indigo and Motherson Sumi are slated to announce their quarter ended March 2020 earnings today.
Amid positive cues from Wall Street in overnight trade, Asian stock markets were seen buoyant on Tuesday. As Japan have further lifted restrictions on social and economic activities in urban areas, Japan’s Nikkei 225 climbed over 1 per cent. Meanwhile, Hong Kong’s Hang Seng has gained nearly half a per cent and the China’s Shanghai Composite is trading almost unchanged.
Asian Markets
|
Asia Opening
|
Price
|
Change
|
% Change
|
|
Nikkei 225
|
22,295.91
|
233.52
|
1.06
|
|
Hang Seng
|
23,844.36
|
111.84
|
0.74
|
|
Shanghai
|
2,916.00
|
0.57
|
0.02
|
|
SGX Nifty
|
9,805.50
|
-28.50
|
-0.29
|
What a way to head start the new month! The Indian equity market soared sharply on Monday, extending its gains for fourth straight session by advancing over 2.5 per cent. The Sensex ascended 2.71 per cent to end above 33,300 level and the Nifty surged 2.57 per cent to settle above 9800 level. Positive cues from the global markets and the news of timely arrival of monsoon aided the surge. The broader markets registered gains of over 3 per cent, outperforming the frontline gauges. Due to strong buying momentum, all the sectoral indices ended in the green, wherein, Nifty PSU Bank led the rally followed by Nifty Metal and Nifty Financial Services.
In overnight developments, US manufacturing activity rose from an 11-year low in May, indicating stabilization following a pandemic-driven dive. This led to optimism in US stocks. However, escalating of the social tensions across the country on the heels of the death of George Floyd kept a lid on the enthusiasm. The tech-heavy Nasdaq composite outperformed as it rallied nearly 0.66 per cent followed by S&P 500 and Dow which advanced 0.38 and 0.36 per cent respectively. On Monday, European indices too inched higher as the manufacturing output recovered from in the month of May.
US Markets
|
US Closed
|
Price
|
Change
|
% Change
|
|
Dow
|
25,475.02
|
91.91
|
0.36
|
|
S&P 500
|
3,055.73
|
11.42
|
0.38
|
|
Nasdaq
|
9,552.05
|
62.18
|
0.66
|
|
GlobalDow
|
2,776.73
|
3.44
|
0.12
|
Europe Markets
|
Europe Closed
|
Price
|
Change
|
% Change
|
|
FTSE 100
|
6,166.42
|
89.82
|
1.48
|
|
CAC 40
|
4,762.78
|
67.34
|
1.43
|
|
FTSE MIB
|
18,523.71
|
326.15
|
1.79
|
|
IBEX 35
|
7,221.40
|
124.90
|
1.76
|
|
Stoxx 600
|
354.20
|
3.84
|
1.10
|
Commodity
|
Commodity
|
Price
|
Change
|
% Change
|
|
Gold
|
1,750.20
|
-0.10
|
-0.01
|
|
Oil
|
35.57
|
0.13
|
0.37
|