India’s benchmark equity indices opened lower on Tuesday, tracking global cues, even as losses were tempered. In opening deals, Sensex fell 125.42 points to 52,721.28, and the broader Nifty was down 30.20 points at 15,744.20.
Investors will now track the US Federal Reserve’s next policy announcement, scheduled for Wednesday, for clues on how aggressive the central bank intends to be in raising rates.
Nifty Metal rises led by Ratnamani, Tata Steel
Rupee inches 2 paise higher to 78.02 against US dollar in early trade: PTI
Barring IT, all Nifty sectoral indices under pressure
Nifty below 15,800 in opening deals
Sensex lower in opening deals tracking global cues
Nifty slips below 15,600 in pre-open
Sensex down 300 points in pre-open
Indonesia cuts maximum palm oil export levy to $200, but to rise in August: Reuters
Indonesia on Tuesday issued regulations backing recently announced changes on a palm oil export tax policy, including cutting the maximum levy rate to accelerate shipments that have been slow to rebound after the ending of an export ban. But the levy rate will be raised in August, according to the finance ministry regulations, sparking concerns from an industry group. Indonesia, the world’s biggest palm oil exporter, allowed palm shipments to resume from May 23 following a three-week export ban designed to boost cooking oil stocks and keep runaway local prices in check. Authorities have since launched an export acceleration programme and tweaked tax rules after shipments were slow to restart amid confusion over procedural issues. Details of Tuesday’s regulations were in line with previous announcements, including lowering the maximum levy rate for crude palm oil to $200 a tonne from $375, effective until 31 July.
Bitcoin slumps as much as 10% in deepening crypto sector selloff
Bitcoin extended declines on Tuesday as investor sentiment took another leg down over fears that bigger Federal Reserve interest-rate hikes loom to quell inflation.
The world’s largest digital token shed as much as 10.3% to reach $20,824, the lowest level since December 2020. A range of other tokens from Ether to Avalanche were also nursing losses.
Gold prices hover near four-week low on elevated dollar
Gold hovered near a four-week low on Tuesday, as some bears looked to book profits, but prices remained largely pressured by a strong dollar and investors dumping bullion to cover for losses in other assets.
Amid prospects of aggressive monetary policy tightening, spot gold rose 0.4% to $1,825.97 per ounce, in Asian deals, after falling to its lowest since May 19 at $1,810.90 earlier in the session.
Nifty view: Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities
The market crashed with full force on the first day of the week, as benchmark indices slumped below their crucial levels on across-the-board selling pressure. There have been heightened concerns amongst investors that central banks will be more aggressive in the coming months to hike interest rate hikes in order to combat inflation, which will in turn hurt economic growth and put margins under pressure. Markets were also down due to continued strength in Brent crude prices, 10-year bond yields rising to 3.20% from recent lows of 2.80%, and the expected CPI numbers. The fear and uncertainty was clearly visible in India’s VIX, which is up over 15% at 22.50.
Technically, if the Nifty breaks and closes below 15700, it will be a major downside event for the market. In such a situation, the index would fall to the level of 15500-15400 in the short term. It is advisable to reduce a weak long position below the 15700 level. Also, Bank Nifty could drop to 32000 level if it ends below 33500.
Oil bounces around as tight supply offsets China, recession fears
Oil prices seesawed in positive and negative territory on Tuesday, holding up despite recession fears and potential new COVID-19 curbs in China that could dampen demand as the market remains tightly supplied.
U.S. West Texas Intermediate (WTI) crude eased 4 cents to $120.89 a barrel in early deals, while Brent crude futures dipped 6 cents to $122.21 a barrel.
CPI inflation moderates in May to 7.04%
Retail inflation eased in May from the eight-year high it hit the previous month but remained well above the central bank’s upper tolerance level, adding pressure on policymakers to tame unrelenting price rise.
Consumer Price Index inflation moderated to 7.04% in May from 7.79% in April, helped by slower increases in food prices, data released by the Ministry of Statistics and Programme Implementation (MOSPI) showed on Monday. (Read here)
SGX Nifty futures fall over 100 points
Nifty futures on the Singapore Exchange fell 117.50 points, or 0.74%, to 15,661.00 in early deals on Tuesday, indicating a negative start for Indian benchmarks.
India’s benchmark equity indices slumped over 2.5% on Monday amid a sell-off in global markets. The rupee plunged 20 paise to close at an all-time low of 78.13 against the US dollar, as a lacklustre trend in domestic equities and stronger greenback overseas weighed on investor sentiment.
The Sensex fell 1,456.74 points to end the day at 52,846.70, having touched an intraday low of 52,527.08. The Nifty was down 427.40 points or 2.64% at 15,774.40.
Asian stocks slide as Wall St tips into bear market
Asian shares tumbled on Tuesday after Wall Street hit a confirmed bear market milestone and bond yields struck a two-decade high on fears aggressive U.S. interest rate hikes would push the world’s largest economy into recession.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.9%.
Australian shares S&P/ASX200 sank 5% in early trade, while Japan’s Nikkei stock index was down 1.74%. In Hong Kong, the Hang Seng Index slipped 1.44% and China’s CSI300 Index was down nearly 1% at open.
US futures steadied in the wake of a three-day rout in the S&P 500 of nearly 9%. Robust earnings from technology bellwether Oracle Corp. lifted battered tech shares in extended US trading.
On the Wall Street on Monday, the S&P 500 fell 151.23 points to 3,749.63 and dropped 21.8% below its record set early this year to put it into what investors call a bear market. The S&P 500 has lost nearly 9% in just three days. That’s its worst such stretch since the earliest days of the coronavirus crash in March 2020.
The Dow lost 876.05, or 2.8%, to 30,516.74 on Monday, and the Nasdaq composite dropped 530.80, or 4.7% to 10,809.23.
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Read More: Stock Market LIVE updates: Sensex, Nifty lower; banks drag, metals shine