Monday, 15 June 2020
Our View in a Snapshot
| NIFTY | USD/INR | |
| Expected Open | 9900 | 76.10 |
| Expected Range | 9600 – 10100 | 75.90 – 76.30 |
- Asian stocks sell off on second wave fears
- Dollar gain after new virus cases in Beijing
- Oil prices drop as rising U.S. coronavirus cases stoke fears of weak fuel demand
Equity
Asian markets started the week on the backfoot on Monday while oil prices slipped as fears of a second wave of coronavirus infections in China sent investors scurrying for safe-havens.
MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.25% with Australian shares off 0.4% and South Korea slipping 0.6%. Japan’s Nikkei fell 0.75%.
Australian S&P/ASX 200 futures were down 3.04%, while Japan’s Nikkei 225 index closed down 2.82% at 22,472.91 on Thursday. Hong Kong’s Hang Seng index futures were down 2.06%.
Our View on Stock Market
The Indian stock market is expected to open 80 to 100 points down from its Friday close of 9,980
The Nifty futures are likely to open around 9,900.
The likely range for the day is 9,600 – 10,100
Currencies
The Australian and New Zealand dollars fell against their U.S. counterpart on Monday after fears of a second wave of the coronavirus in Beijing prompted investors to sell currencies sensitive to risk.
Chinese yuan dipped in offshore trade to 7.0877 per dollar while the risk-sensitive currencies of Australia and New Zealand were also sold off. Both were last down 0.4% at $0.6855 and $0.6424, respectively. The dollar was little changed at 107.46 yen as investors avoided big moves before a Bank of Japan policy meeting ending Tuesday.
Our View on USD / INR
The Indian rupee is expected to open flat against the U.S. currency and likely to weaken against dollar amid detection of new cases of corona virus in China.
The rupee will likely be quoted around 76.10 to a dollar in early trades.
The Rupee is likely to trade in the Range of 75.90 to 76.30
OIL
Oil prices fell on Monday, with U.S. oil dropping more than 2%, as a spike in new coronavirus cases in the United States raised concerns over a second wave of the virus which would weigh on the pace of fuel demand recovery.
Brent crude futures fell 66 cents, or 1.7%, at $38.07 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 81 cents, or 2.2%, to $35.45 a barrel.
Source : Reuters
