Indian Indices End Flat, Crude Oil Continues Momentum, and Top Cues in Focus Today

Tue, 25 Jun Pre-Open

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India share markets ended marginally lower yesterday.

At the closing bell yesterday, the BSE Sensex stood lower by 71 points (down 0.2%) and the NSE Nifty closed down by 24 points (down 0.2%).

The BSE Mid Cap index ended the day down 0.3%, while the BSE Small Cap index ended the day down 0.2%.

Sectoral indices ended on a mixed note with stocks in the metal sector, energy sector and realty sector witnessing most of the selling pressure.

Top Stocks in Focus Today

From the FMCG sector, Emami share price will be in focus today. Shares of the company slipped around 7% yesterday to hit over four-year lows of Rs 270, after huge block deals were encountered on the exchanges. Shares were trading at their lowest level since August 8, 2014 on the BSE.

From the energy sector, Suzlon Energy share price will be in focus today. Shares of the company witnessed buying interest yesterday after the company told its lenders that Canadian investor Brookfield is keen to acquire a majority stake in the company.

JMC Projects share price will also be in focus today as the company said it has won contracts worth Rs 5.1 billion for residential and commercial projects and factory works. The orders include residential and commercial projects in south and west India totaling Rs 3 billion and factory works from a multinational client in east India worth Rs 1.1 billion.

Market participants will also be tracking DHFL share price today as it was announced that the company's lenders will meet in the first week of July to work out a rescue package for Dewan Housing Finance Corporation (DHFL).

The key talking points of the meeting will include restructuring of loans to ensure repayment, fresh working capital support, inducting a new financial investor and a new management team to be put in place.

RBI Deputy Governor Viral Acharya Said to Quit Before Term

In the news from the economy, Reserve Bank of India's (RBI) Deputy Governor Viral Acharya is said to have quit six months before the scheduled end of his term to return to New York University Stern School of Business (NYU stern) in August as CV Starr Professor of Economics.

Acharya, who joined the central bank on January 23, 2017, was RBI's youngest deputy governor post economic liberalisation.

As per the news, Acharya has been uncomfortable ever since the exit of Urjit Patel as Governor of RBI. His academic views of the financial system were in contrast with the rest of the system.

In the over 90-minute long speech, Acharya, who was in charge of the monetary policy department, warned of the wrath of the markets if the autonomy of a central bank was compromised. Acharya had explicitly said he had the backing of the then Governor Patel for making the speech.

Reports also stated that another RBI's Deputy Governor NS Vishwanathan, whose term is due to end in the first week of July is likely to stay back for another two-year term. The process for finding Vishwanathan's successor has been put on hold.

Crude Oil Continues Momentum

Moving on to the news from the commodity space, crude oil prices inched higher yesterday on the back of tensions between Iran and the United States.

As per the news, US Secretary of State Mike Pompeo said significant sanctions on Tehran would be announced soon which will be aimed at further choking off resources that Tehran uses to fund its activities in the region.

Last week, crude oil prices gained momentum over a possible trade deal between US & China amid fresh concerns arising from the Middle East.

In the coming days, market participants will be tracking the G20 summit which is to be conducted in Japan later this month where US President Donald Trump will likely meet Chinese President Xi Jinping.

The two countries will resume with the trade talks before the presidents of the two countries meet in Japan.

Markets will also be closely tracking crude oil prices in the coming weeks ahead of the OPEC meet. The members of the Organization of the Petroleum Exporting Countries (OPEC) have agreed to meet on July 1, followed by a meeting with non-OPEC allies on July 2 where they will discuss whether to extend a deal on cutting 1.2 million barrels per day of oil production that runs out this month.

We will keep you updated on all the developments from this space. Stay tuned.

To know more about commodity and currency markets and which are the best counters to trade in this space, you can read one of Vijay Bhambwani's recent articles: Why Do I Recommend Trading Only Nickel, Crude oil, Gold, Copper, and USDINR?

And to know what's moving the Indian stock markets today, check out the most recent share market updates here.